The Canterbury Community Trust

Notes to the financial statements

For the year ended 31 March 2013

3 Significant accounting policies (continued)

(ni) New standards adopted and interpretations not yet adopted

The following new interpretations and amendments to standards were adopted for the year ended 31 March 2013, and have been applied in preparing these consolidated financial statements:

• Amendments to NZ IFRS 7 Financial Instruments: Disclosures to NZ IFRS 7 enhance the transparency of disclosure requirements for the transfer of financial assets.
  For transferred financial assets that are derecognised in their entirety but where the entity has a continuing involvement in them, the amendments require disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, the entity’s continuing involvement in those derecognised assets.
  For transferred financial assets that are not derecognised in their entirety, the amendments require disclosure of information that enables users of financial statements to understand the relationship between those assets which are not derecognised and their associated liabilities.

• FRS-44 New Zealand Additional Disclosures is a consequence of the joint Trans-Tasman Convergence project of the Australian Accounting Standards Board (AASB) and Financial Reporting Standards Board (FRSB). This standard relocates New Zealand specific disclosures from other standards to one place and revises disclosures in the following areas:

  • (a) Compliance with NZ IFRS
  • (b) The statutory basis or reporting framework for financial statements
  • (c) Audit fees
  • (d) Imputation credits
  • (e) Reconciliation of net operating cash flow to profit (loss)
  • (f) Prospective financial statements
  • (g) Elements in the statement of service performance
    There are no changes to disclosures resulting from adoption of this standard.

• Amendments to NZ IFRS to Harmonise with IFRS and Australian Accounting Standards:

  • (a) Remove the disclosures which have been relocated to FRS 44
  • (b) Harmonise audit fee disclosure requirements in NZ IAS 1 with AASB 101
  • (c) Harmonise imputation/franking credits’ disclosure requirements in NZ IAS 12 with AASB 101
  • (d) Introduce the option to use the indirect method of reporting cash flows in NZ IAS 7
  • (e) Introduce an accounting policy choice to use the cost model for investment property under NZ IAS 40
  • (f) Remove the requirement to use an independent valuer and the related disclosure requirements currently in NZ IAS 16 and NZ IAS 40
  • (g) Remove some NZ-specific disclosures
    Disclosures regarding use of an independent valuer for investment property under NZ IAS 16 and NZ IAS 40 have been removed. There have been no other changes to disclosures resulting from adoption of this standard.

• Amendments to NZ IAS 12 Income Taxes — Deferred Tax: Recovery of Underlying Assets include:

  • A rebuttable presumption that deferred tax on investment property measured using the fair value model in NZ IAS 40 should be determined on the basis that its carrying amount will be recovered through sale. This presumption is rebutted if the investment property is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sale
  • A requirement that deferred tax on non-depreciable assets, measured using the revaluation model in NZ IAS 16, should always be measured on a sale basis
    The amendments incorporate NZ SIC-21 Income Taxes — Recovery of Revalued Non-Depreciable Assets into NZ IAS 12 for non-depreciable assets measured using the revaluation model in NZ IAS 16 Property, Plant and Equipment.
    The Group already measures deferred tax on revalued assets on a sale basis therefore there have been no changes resulting from adoption of this standard.

The following new interpretations and amendments to current standards are not yet effective for the year ended 31 March 2013, and have not been applied in preparing these consolidated financial statements. The Group expects the following amendments to standards to have an impact on its financial statements in future periods:

• NZ IFRS 9 (2009) & (2010) “Financial Instruments” was approved for periods beginning on or after 1 January 2013. This standard replaces the multiple classification and measurement models in IAS 39 Financial Instruments: Recognition and measurement with a single model that has only two categories: amortised cost and fair value. The Group intends to adopt this standard from 1 April 2015. The new standard is not expected to significantly impact the Group but will result in some amended presentation within the Financial Statements.

(nj) Changes in accounting policies

Other than new standards adopted there have not been any changes in accounting policies during the year.