ASB COMMUNITY TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements made by management in the application of NZ IFRS that may have a significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in Note 5: Grants and Note 9: Financial Assets and Liabilities.

ACCOUNTING POLICIES:

Group financial statements

Subsidiaries are entities controlled by the Trust. The financial statements of the subsidiaries are included in the Group financial statements from the date of control to the date that control ceases. The financial statements have been prepared using uniform accounting policies for like transactions. Intra-group balances and income and expenses arising from intra-group transactions are eliminated in preparing the Group financial statements. One of the Trust's subsidiary companies, ASB Trusts Amateur Public Sports Promotion Limited, has not operated since incorporation. Centre for Social Impact New Zealand Limited, (a subsidiary incorporated on 30 September 2013) will not commence operations until the 2014/15 financial year.

Statement of Cash Flows

Cash comprises cash at bank but does not include cash or deposits held by the Fund Managers. Therefore the Statements of Cash Flows do not reflect the cash flows within the Fund Managers' portfolios.

Revenue from Pooled Funds and Segregated Accounts, Dividends and Interest

Dividends are recognised as income on declaration date, and are recorded net of any imputation tax credits. Income from Pooled Funds and Segregated Accounts comprise distributions recognised on declaration date, interest, realised and unrealised gains and losses including foreign exchange. Interest is recognised on an accrual basis, applying the effective interest income method.

Grants

Grants are accounted for as they are committed to be distributed to eligible organisations approved either by the Trustees of the Trust or Directors of ASB Community Trust Charitable Purposes Limited (the Company). Committed grants are payable on the satisfaction of any conditions of payment placed on the recipients. As part of the end of year routine the Trustees and the Company Directors review the schedule of grants with outstanding balances at year end and confirm that the outstanding balances represent valid grant claims against either the Trust or the Company and are not, at balance date, subject to write back. Grants no longer required or not fully utilised by grant recipients are shown separately in the Statements of Comprehensive Income as Grants Written Back or Grant Refunds Received.

From time to time the Trust may distribute grants to the Company to provide grants for special initiatives approved by Trustees or for grants to community organisations in future years. At year end uncommitted funds held by the Company are disclosed as Reserve for Grants in the Statements of Financial Position.