✨ Financial Statements Notes
2444 NEW ZEALAND GAZETTE, No. 87 4 AUGUST 2014
TSB Community Trust
Notes to the Financial Statements
For the year ended 31 March 2014
- Statement of Accounting Policies (continued)
(iv) Financial Liabilities (continued)
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense of the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period to the net carrying amount of the financial liability.
Derecognition of Financial Liabilities
The Trust derecognises financial liabilities when, and only when, the Trust's obligations are discharged, cancelled or they expire.
d) Impairment of Financial Assets
Financial assets, other than those at fair value through profit and loss, are assessed for indicators of impairment at each statement of financial position date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been impacted.
For certain categories of financial assets, such as trade receivables, assets that are assessed not to be impaired individually are subsequently assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Trust's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 60 days, as well as observable changes in national or local economic conditions that correlate with default on receivables.
e) Goods and Services Tax (GST)
The financial statements have been prepared on a GST inclusive basis as the Trust is not registered for GST.
f) Taxation
The Trust is exempt from income tax under section CW52 of the Income Tax Act (2007).
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NZ Gazette 2014, No 87
✨ LLM interpretation of page content
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TSB Community Trust Financial Statements
(continued from previous page)
💰 Finance & Revenue15 July 2014
Financial Statements, Community Trusts, TSB, Accounting Policies, Loans, Receivables, Impairment Loss, Financial Liabilities