✨ Financial Statements Notes
Bay of Plenty Community Trust Incorporated
Notes to the financial statements (continued)
3 Significant accounting policies (continued)
Short term deposits
Short term deposits are short term investments with an original maturity of between 3-12 months (note 12).
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. The Trust’s loans and receivables comprise 'loans'.
Loans and receivables are initially recognised at fair value plus transaction costs. The fair value of long term receivables or loans that are interest free or have interest rates below market values is estimated using the present value of all future cash flow receipts discounted using the prevailing market rate of interest for similar instruments with a similar credit rating. After initial recognition, loans and receivables are carried at amortised cost using the effective interest method less impairment.
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period, to the net carrying amount of the financial asset.
The Trust assesses at each balance sheet date whether there is objective evidence that a loan or receivable is impaired.
Trade and other payables
Trade and other payables are stated at cost and are classified as other liabilities.
(c) Grants expenditure and grants payable
The Trust makes discretionary grants. The grants are recognised as an expense at the point at which the payment of the grant has been approved by the Trustees and the recipient of the grant does not have any further obligations to meet in order to receive the grant.
Grants payable are those grants which have been approved, there are no further obligations to be met however the grant has not been paid by the reporting date.
Where grants have been approved in the current or previous years, but are subject to the fulfilment of certain conditions in future years, are treated as contingent liabilities (note 8).
(d) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
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NZ Gazette 2013, No 110
✨ LLM interpretation of page content
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Bay of Plenty Community Trust Incorporated Financial Statements
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💰 Finance & Revenue17 June 2013
Financial Statements, Community Trusts, Bay of Plenty, Grants, Investments, Assets, Liabilities, Equity, Accounting Policies, Foreign Currency, Financial Instruments