✨ Financial Statements Notes
ASB COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2014
Financial Assets
All assets that are financial instruments are recognised in the Statements of Financial Position.
All investments are initially recognised at fair value, being the fair value of consideration paid. Attributable transaction costs are recognised in profit or loss as incurred. Upon initial recognition, financial assets are designated at fair value through profit or loss as the Group manages the investments, based on their fair value. Investments are revalued to fair value at each reporting date as per valuation methodologies outlined in Note 9 and within NZ IFRS 7 (PBE) Financial Instruments: Disclosures. All realised and unrealised gains or losses on investments are recognised in profit or loss in the Statement of Comprehensive Income. The Group derecognises a financial asset when and only when the contractual rights to cash flows from the financial asset expire or are transferred and the transfer qualifies for derecognition.
Investment transactions are recorded by Fund Managers on a trade date basis.
Financial assets are managed and have their performance evaluated on a fair value basis in accordance with risk management and investment strategies of the Group, as disclosed in Note 9.
Derivative Financial Instruments
The Group uses derivative financial instruments, in the form of forward exchange contracts, to reduce exposure to fluctuations in foreign currency denominated assets and liabilities. Forward exchange contracts are entered into to hedge foreign currency denominated assets. Derivatives are not held or issued for trading purposes. However, derivatives not qualifying for hedge accounting purposes are accounted for as held for trading instruments. Derivative financial instruments are recognised initially at fair value on the date on which a derivative contract is entered into and transaction costs are expensed immediately. Subsequent to initial recognition derivative financial instruments are stated at fair value. The gain or loss on re-measurement to fair value is recognised immediately in the Statements of Comprehensive Income.
Other Financial Assets
Other financial assets comprise of Sundry Accounts Receivables and the Trust’s investment in a Limited Partnership. They are initially recognised at fair value, and subsequently measured at amortised cost using the effective interest rate (EIR) method, less any impairment.
Cash and Cash Equivalents
Cash and Cash Equivalents comprise cash held in the Trust’s bank accounts with ASB Bank Limited. These accounts are all interest bearing.
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NZ Gazette 2014, No 105
✨ LLM interpretation of page content
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ASB Community Trust Financial Statements
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💰 Finance & RevenueFinancial Statements, Community Trusts, Revenue, Expenses, Grants