β¨ Financial Statements Notes
2670 NEW ZEALAND GAZETTE, No. 95 19 AUGUST 2014
Depreciation
Depreciation is provided over the useful life of the assets. Land is not depreciated. Buildings are depreciated at 2% per annum on straight line basis. Office equipment and furniture are depreciated on a diminishing value basis. The rates used are those approved by Trustees as follows:
| Land | Nil |
| Buildings | 2% to 4% | SL |
| Office Equipment & Furniture | 15% to 48% | DV |
| Shares in TΔ Kete Putea Ltd
(Grants Management System) | 17% | SL |
Impairment
If the recoverable amount of an item of property, plant and equipment is less than its carrying amount, the item is written down to its recoverable amount. The write down of an item recorded at historical cost is recognised as an expense in the Statement of Comprehensive Income. When a revalued item is written down to recoverable amount, the write down is recognised as a downward revaluation to the extent of the corresponding revaluation reserve, and any balance recognised in the Statement of Comprehensive Income.
The carrying amount of an item of property, plant and equipment that has previously been written down to recoverable amount is increased to its current recoverable amount if there has been a change in the estimates used to determine the amount of the write down. The increased carrying amount of the item will not exceed the carrying amount that would have been determined if the write down to recoverable amount had not occurred.
Reversals of impairment write downs are accounted for as follows:
- On property, plant and equipment that are not revalued, the reversal is recognised in the Statement of Comprehensive Income; and
- On revalued property, plant and equipment, the reversal is recognised as an upward revaluation in the Statement of Comprehensive Income.
Foreign Currency Transactions and Balances
Foreign currency transactions are translated to New Zealand dollars at the spot exchange rate applying at the date of the transaction.
All amounts denominated in foreign currencies at balance date are translated to New Zealand dollars at the balance date closing exchange rate.
All realised and unrealised gains and losses on foreign currency transactions are recognised in the Statement of Comprehensive Income.
Financial Assets
Financial assets are recognised in the Statement of Financial Position when the Foundation becomes party to a financial contract. They include cash balances, hedge contracts, investments, term deposits, accrued income and intercompany balances.
All assets that are financial instruments are recognised in the Statement of Financial Position.
All financial assets are initially recognised at fair value, being the fair value of consideration paid. After initial recognition, financial assets designated at fair value through profit or loss are revalued to fair value at each reporting date.
For investments that are actively traded in organised financial markets, fair value is determined by reference to exchange quoted market bid prices at the close of business on the reporting date.
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NZ Gazette 2014, No 95
β¨ LLM interpretation of page content
π°
Whanganui Community Foundation Incorporated - Notes to the Financial Statements for the Year Ended 31 March 2014
(continued from previous page)
π° Finance & RevenueDepreciation, Impairment, Foreign Currency Transactions, Financial Assets