New Zealand Gazette – 2014 – No. 93

Page 2644

✨ Financial Statements Notes



Bay of Plenty Community Trust Incorporated

Notes to the financial statements (continued)

in New Zealand Dollars ($000's)

14 Financial instruments (continued)

Estimation of fair values

The methods used in determining the fair values of financial instruments are discussed in note 3.

Fair value hierarchy

The fair value of financial assets and liabilities traded in active markets are based on quoted market prices at the end of the reporting period. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker or pricing service, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The fair value of financial assets and liabilities that are not traded in an active market is determined by using valuation techniques. The Trust’s investment managers use a variety of methods and makes assumptions that are based on market conditions existing at each reporting date. Valuation techniques used for non-standard financial instruments such as over the counter derivatives include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, options pricing models and other valuation techniques commonly used by market participants making the maximum use of market inputs and relying as little as possible on entity specific inputs.

The Trust is unlikely to invest in instruments where there is no active market.

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

  • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
  • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
  • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
31 March 2014 Level 1 Level 2 Level 3 Total
Financial assets designated at fair value through profit or loss
Unlisted unit trust - NZ fixed interest debt securities - 12,724 - 12,724
Unlisted unit trust - Australasian equities - 10,902 - 10,902
Unlisted unit trust - Global bonds - 78,934 - 78,934
Unlisted unit trust - Global equities - 70,290 - 70,290
Te Kete Putea Limited Partnership - - 72 72
Total - 172,850 72 172,922

There have been no transfers between levels in either direction during the year (2013: nil).

31 March 2013 Level 1 Level 2 Level 3 Total
Financial assets designated at fair value through profit or loss
Unlisted unit trust - NZ fixed interest debt securities - 9,124 - 9,124
Unlisted unit trust - Australasian equities - 9,365 - 9,365
Unlisted unit trust - Global bonds - 76,758 - 76,758
Unlisted unit trust - Global equities - 64,360 - 64,360
Te Kete Putea Limited Partnership - - 90 90
Total - 159,607 90 159,697

All fair value gains and losses are shown in Note 4.



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Online Sources for this page:

Gazette.govt.nz — PDF NZ Gazette 2014, No 93




✨ LLM interpretation of page content

💰 Bay of Plenty Community Trust Financial Statements Notes (continued from previous page)

💰 Finance & Revenue
26 June 2014
Financial Instruments, Fair Value, Valuation Methods, Investment Portfolio, Unlisted Unit Trusts