✨ Financial Statements
19 AUGUST 2014 NEW ZEALAND GAZETTE, No. 95 2669
Consolidated financial statements
The purchase method is used to prepare the consolidated financial statements, which involves adding together like items of assets, liabilities, equity, income and expenses on a line by line basis. All balances and transactions between the Foundation and the Company are eliminated on consolidation.
Statement of Cashflows
The business of the Foundation is the distribution of funds for community benefit. This is supported by the investment portfolio function. Therefore operating activities includes all community distribution and investment functions and the administration that supports these functions.
Cash comprises cash at bank and call deposits but does not include cash or deposits held by the Fund Managers. Therefore the Statement of Cashflows does not reflect the cash flows within the Fund Managers’ investment portfolios.
Revenue - Dividends, Pooled Funds and Interest
Income from Pooled Funds is recognised on declaration date. Interest income is recognised on an accrual basis using the effective interest method.
Grants
Approval of a grant by Trustees results in the recognition of that grant within the Foundation’s financial statements whether or not payment has been made.
Approved grants are payable on the satisfaction of any conditions placed on the recipients. Grants no longer required or not fully utilised by grant recipients are shown separately in the Statement of Comprehensive Income.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, bank balances, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, which are held to meet short term cash requirements.
Property, Plant & Equipment
Property, plant and equipment are valued at cost, less accumulated depreciation and impairment losses except for freehold land and buildings which are subsequently revalued on a cyclical basis. Land and Buildings are revalued every 3 years.
Valuations are at net current value, as determined by an independent valuer. Any revaluation surplus arising on the revaluation of land and buildings is transferred directly to the asset revaluation reserve. A revaluation deficit in excess of the asset revaluation reserve balance for the land and buildings is recognised in the Statement of Comprehensive Income in the period it arises. Revaluation surpluses which reverse previous revaluation deficits recorded in the Statement of Comprehensive Income are recognised as revenue in the Statement of Comprehensive Income.
Property, plant and equipment is reviewed annually to determine any impairment losses. Impairment losses are recognised in the Statement of Comprehensive Income.
When an item of property, plant and equipment is disposed of, any gain or loss is recognised in the Statement of Comprehensive Income and is calculated as the difference between the sale price and the carrying value of the item.
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NZ Gazette 2014, No 95
✨ LLM interpretation of page content
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Whanganui Community Foundation Incorporated - Notes to the Financial Statements for the Year Ended 31 March 2014
(continued from previous page)
💰 Finance & RevenueConsolidated Financial Statements, Statement of Cashflows, Revenue Recognition, Grants, Property Plant & Equipment