✨ Financial Statements Notes
27 AUGUST 2014 NEW ZEALAND GAZETTE, No. 101 2781
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2014
2.5 Changes in Accounting Policy and Disclosures
There have been no changes to accounting policies.
2.6 New Zealand Equivalents to International Financial Reporting Standards Issued But Not Yet Effective
A new Accounting Standards Framework (incorporating a tier structure and a separate suite of accounting standards for PBEs) has been issued by the External Reporting Board (XRB).
Under the new Accounting Standards Framework the Trust will have to transition to the new Not-for-Profit Public Benefit Entities (NFP PBE) Standards that will be based mainly on International Public Sector Accounting Standards (IPSAS). The effective date for the new NFP PBE Standards is for reporting periods beginning on or after 1 April 2015. Therefore the Trust will have to prepare its financial statements in accordance with the new NFP PBE Standards for the first time for the year ending 31 March 2016.
The Trust has not been able to determine the impact of this transition as the new NFP PBE Standards are currently being developed by the XRB.
Due to the change in the Accounting Standards Framework for PBEs, all new NZ IFRS and amendments to existing NZ IFRS will not be applicable to PBEs as the XRB has effectively frozen the financial reporting requirements for PBEs until PBEs transition to the PBE Standards. Accordingly, no disclosure has been made about new or amended NZ IFRS that exclude PBEs from their scope.
3 SPECIFIC ACCOUNTING POLICIES
The following specific accounting policies which materially affect the measurement of comprehensive income and the financial position have been applied.
3.1 Revenue Recognition
3.1.1 Investment Income
Investment income is presented in the Statement of Comprehensive Income and comprises interest and dividend income on funds invested, gains and losses on the disposal of investments, changes in the fair value of investments, foreign currency gains and losses, and gains and losses on hedging instruments. Interest income is recognised as it accrues, using the effective interest method. Dividend income is recognised on the date that the Trust’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.
3.1.2 Rental Income
Rental income (net of any incentives) is recognised on a straight line basis over the lease term.
3.2 Investment Expenses
Investment expenses are presented in the Statement of Comprehensive Income and comprise transaction costs, fund management fees and investment advisory services.
Full NZ IFRS Financial Statements for the year ended 31 March 2014
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NZ Gazette 2014, No 101
✨ LLM interpretation of page content
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Notes to the Financial Statements of The Waikato Community Trust Incorporated
(continued from previous page)
💰 Finance & Revenue24 July 2014
Financial Statements, Accounting Policies, Revenue Recognition, Investment Income, Rental Income, Investment Expenses, NFP PBE Standards, Waikato Community Trust