✨ Financial Statements Notes
30 AUGUST 2013 NEW ZEALAND GAZETTE, No. 119 3189
THE COMMUNITY TRUST OF SOUTHLAND
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2013
- STATEMENT OF ACCOUNTING POLICIES (Cont’d)
q) Goodwill
Goodwill represents the excess of the purchase consideration over the fair value of the identifiable tangible and identifiable intangible assets, liabilities and contingent liabilities of the subsidiary recognised at the time of acquisition of a business or subsidiary. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the groups cash-generating units expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
r) Statements of Cash Flows
The Statements of Cash Flows are prepared exclusive of Goods and Services Tax (GST), which is consistent with the method used in the statements of comprehensive income. Cash and cash equivalents comprise cash on hand and demand deposits, and other short term, highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value and includes all call borrowing such as bank overdrafts used by the trust as part of their day-to-day cash management.
‘Operating activities’ represents all transactions and other events that are not investing or financing activities, and includes receipts and repayments of occupancy advances.
‘Investing activities’ are those activities relating to the acquisition and disposal of property, plant & equipment.
‘Financial activities’ are those activities relating to changes in the debt capital structure of the Group.
s) Financial Assets & Liabilities
Investments
Investments are recognised and derecognised on trade date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the time frame established by the market concerned, and are recognised at fair value through profit or loss.
Financial Assets
Financial assets are classified into the following specified categories: financial assets “at fair value through profit or loss” (or “FVTPL”), “held to maturity” investments, “available for sale” financial assets, and “loans and receivables”. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
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NZ Gazette 2013, No 119
✨ LLM interpretation of page content
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Financial Report of the Community Trust of Southland
(continued from previous page)
💰 Finance & Revenue15 August 2013
Financial Statements, Trustees, Community Trust, Southland, Accounting Policies, Goodwill, Cash Flows, Financial Assets, Liabilities, Investments