✨ Financial Statements Notes
1 AUGUST 2014 NEW ZEALAND GAZETTE, No. 84 2355
The Canterbury Community Trust
Notes to the financial statements
For the year ended 31 March 2014
4 Determination of fair values (continued)
(b) Investments in equity and debt securities
The fair value of financial assets at fair value through profit or loss, is determined by reference to their quoted bid price at the reporting date wherever this information is available. Certain investments in emerging markets are only traded on certain days. In this instance the trades that occurred on the date nearest to the balance date have been used.
For investments where there is no active market, investments have been valued using Australian Private Equity & Venture Capital Association Limited ("AVCAL") reporting guidelines. This broadly requires the investment to be valued at cost for the first 18 months and subsequently based on net asset value.
(c) Trade and other receivables
The fair value of trade and other receivables is estimated as the present value of future cash flows, discounted at the market rate of interest at the reporting date.
(d) Derivatives
The fair value of forward exchange contracts is estimated by discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on government bonds).
The fair value of interest rate swaps is based on broker quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the measurement date.
Next Page →
NZ Gazette 2014, No 84
✨ LLM interpretation of page content
💰
Financial Statements for Year Ended 31 March 2014
(continued from previous page)
💰 Finance & Revenue7 July 2014
Financial Statements, Accounting Policies, Fair Value Measurement, IFRS 13, Investment Property, Valuation Methods