✨ Financial Statements Notes
Bay of Plenty Community Trust Incorporated
Notes to the financial statements (continued)
3 Significant accounting policies (continued)
(f) Employee benefits
Liabilities for wages and salaries, including non monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in trade and other payables in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Sick leave is recognised when the leave is taken and measured at the rates paid.
(g) Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Trust’s activities. Revenue is shown net of returns, rebates and discounts.
The Trust recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Trust and when specific criteria have been met for each of Trust’s activities, as described below.
Loan assets are shown at fair value through the profit and loss. The valuation technique used is the income approach, where future amounts are converted to reflect current market expectations.
(i) Interest income
Interest income is recognised on a time-proportion basis using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
(ii) Dividend income
Dividend income is recognised when the right to receive payment is established.
(iii) Sale of services
Sales of services are recognised in the accounting period in which the services are rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided. When the contract outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
(h) New standards and interpretations not yet adopted
A number of new standards are not yet effective for the year ended 31 March 2014 and have not been applied in preparing these financial statements:
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The Trust has not early-adopted any NZ IFRSs.
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Standards and interpretations in issue not yet effective.
The Trust has reviewed all other standards and interpretations issued by the Financial Reporting Standards Board that are not yet adopted, and does not expect these standards to have any material impact on the financial statements of the Trust. -
The Minister of Commerce has approved a new Accounting Standards Framework developed by the External Reporting Board (XRB). This framework incorporates a tier strategy. The Trust will adopt not for profit public benefit entity accounting standards, which come into effect for periods beginning on or after 1 April 2015.
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NZ Gazette 2014, No 93
✨ LLM interpretation of page content
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Bay of Plenty Community Trust Financial Statements Notes
(continued from previous page)
💰 Finance & Revenue26 June 2014
Financial Statements, Notes, Accounting Policies, Employee Benefits, Revenue Recognition, Interest Income, Dividend Income, Sale of Services, New Standards