✨ Financial Statements Notes
29 AUGUST 2014 NEW ZEALAND GAZETTE, No. 104 2911
THE COMMUNITY TRUST OF SOUTHLAND
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2014
22. FINANCIAL INSTRUMENTS (Cont’d)
The following table details the Group’s sensitivity to certain risks as follows:
- Interest rate risk +/- movement in interest rates of 100 basis points
- Foreign exchange +/- movement in foreign exchange rates of 10%
- Equity price risk +/- in equity prices of 10%
| Interest Rate Risk | Foreign Exchange Risk | Equity Price Risk | ||||
|---|---|---|---|---|---|---|
| 31 March 2014 | -1% | +1% | -10% | +10% | -10% | +10% |
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
| -------------------- | -------------------- | ------------ | ----------------------- | ------------ | ------------------- | ------------ |
| Net | ||||||
| Surplus/(Deficit) | $3,294 | ($3,294) | $3,151 | ($6,844) | $8,612 | ($8,612) |
| Total Funds Employed | $3,294 | ($3,294) | $3,151 | ($6,844) | $8,612 | ($8,612) |
| Interest Rate Risk | Foreign Exchange Risk | Equity Price Risk | ||||
|---|---|---|---|---|---|---|
| 31 March 2013 | -1% | +1% | -10% | +10% | -10% | +10% |
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
| -------------------- | -------------------- | ------------ | ----------------------- | ------------ | -------------------- | ------------ |
| Net | ||||||
| Surplus/(Deficit) | $4,353 | ($4,353) | $5,485 | ($4,487) | $8,683 | ($8,683) |
| Total Funds Employed | $4,353 | ($4,353) | $5,485 | ($4,487) | $8,683 | ($8,683) |
The above sensitivity analysis has been prepared based on the following assumptions:
- The assets and liabilities as at year end remain the same throughout the ensuing year.
- Each of the sensitivities is performed in isolation.
- In 2013, the exact split of the unit trust shareholdings in overseas equities was unknown so it was assumed that they were domiciled in the following currencies:
- US$ 50%
- Euros 30%
- Yen 20%
In 2014, with a change in investment strategy and investment managers, it is known exactly what shares and how much are held in each foreign currency and as such the calculation of the foreign exchange risk is based on the value of holdings in each currency at balance date multiplied by the exchange rate applicable to each currency at balance date.
The Trust’s offshore fixed interest investments are fully hedged, and therefore no foreign exchange risk exists in respect of those investments.
Liquidity & Interest Risk tables - Financial Liabilities
The following tables detail the Group’s remaining undiscounted contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Trust can be required to pay. The table includes both principal and interest cash flows.
| Less than 1 year | 1-2 Years | 2-3 Years | More than 3 years | Total | |
|---|---|---|---|---|---|
| 2014 | $'000 | $'000 | $'000 | $'000 | $'000 |
| Accounts payable | 252 | 252 | |||
| Grants committed | |||||
| not paid | 9,714 | 2,056 | 956 | 20 | 12,746 |
| Term loan | 140 | 140 | 140 | 210 | 630 |
| 10,106 | 2,196 | 1,096 | 230 | 13,628 |
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NZ Gazette 2014, No 104
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Community Trust of Southland Financial Report
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💰 Finance & RevenueFinancial report, Community Trust, Southland, Financial instruments, Risk management, Market risk, Credit risk, Liquidity risk