✨ Financial Statements Notes
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013
Financial Assets
All assets that are financial instruments are recognised in the Statements of Financial Position.
All investments are initially recognised at fair value, being the fair value of consideration paid. Attributable transaction costs are recognised in profit or loss as incurred. Upon initial recognition, financial assets are designated at fair value through profit or loss as the Group manages the investments, based on their fair value. Investments are revalued to fair value at each reporting date. All realised and unrealised gains or losses on investments are recognised in profit or loss in the Statement of Comprehensive Income.
For investments that are actively traded in organised financial markets, fair value is determined by reference to exchange quoted market bid prices at the close of business on the Statement of Financial Position date. As these are quoted prices (unadjusted) in active markets for identical assets, they fall within Level 1 of the fair value hierarchy within NZ IFRS 7 Financial Instruments: Disclosures.
Investments in pooled funds are valued at the unit exit price determined by the Fund Manager at the close of business on the Statement of Financial Position date. This is based either on:
- quoted prices (unadjusted) in active markets for units of the fund, and fall within Level 1 of the NZ IFRS 7 fair value hierarchy, or
- inputs other than quoted prices included within Level 1 that are observable for the asset, either directly (i.e. as prices) or indirectly (i.e. derived from prices), and fall within Level 2 of the NZ IFRS 7 fair value hierarchy, or
- inputs for assets that are not based on observable market data (unobservable inputs), and fall within Level 3 of the NZ IFRS 7 fair value hierarchy.
Investment transactions are recorded by Fund Managers on a transaction date basis.
Financial assets are managed and have their performance evaluated on a fair value basis in accordance with risk management and investment strategies of the Group, as disclosed in Note 9.
The Group uses derivative financial instruments, in the form of forward exchange contracts, to reduce exposure to fluctuations in foreign currency denominated assets and liabilities. Forward exchange contracts are entered into to hedge foreign currency denominated assets. Derivatives are not held or issued for trading purposes. However derivatives not qualifying for hedge accounting purposes are accounted for as trading instruments. Derivative financial instruments are recognised initially at fair value and transaction costs are expensed immediately. Subsequent to initial recognition derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognised immediately in the Statements of Comprehensive Income.
The Group derecognises a financial asset when and only when the contractual rights to cash flows from the financial asset expire or are transferred and the transfer qualifies for derecognition.
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NZ Gazette 2013, No 114
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ASB Community Trust Financial Statements Notes
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💰 Finance & RevenueFinancial Statements, Accounting Policies, Cash Flows, Revenue, Grants, ASB Community Trust