✨ Financial Statements and Investment Income
19 AUGUST 2014
NEW ZEALAND GAZETTE, No. 95
2671
Investments in pooled funds are valued at the unit exit price ("bid price") determined by the Fund Manager at the close of business on the reporting date.
All realised and unrealised gains or losses on investments are recognised in the Statement of Comprehensive Income.
Investment transactions are recorded by Fund Managers on a transaction date basis.
Financial assets are managed and have their performance evaluated on a fair value basis in accordance with risk management and investment strategies of the Foundation, as disclosed in Note 13.
The Foundation ceases to recognise a financial asset when and only when the contractual rights to cash flows from the financial asset expire.
Taxation
The Income Tax Act 2007 provides exemption from income tax for Community Trusts established under the Trustee Banks Restructuring Act 1988. The amendment applied from the 2005 income year, and consequently no taxation has been provided for in these financial statements. The Company is registered as a charitable entity under the Charities Act 2005 (CC21727) and is therefore exempt from tax.
Goods and Services Tax
The financial statements have been prepared on a GST exclusive basis except for the amounts included for accounts receivable and accounts payable, which include GST where invoiced.
Accounts Receivable and Payable
Receivables and payables are initially recorded at fair value and subsequently carried at amortised cost using the effective interest method. Due allowance is made for impaired receivables (doubtful debts). All accounts receivable are considered to be receivable in full and therefore there has been no requirement to provide a provision for doubtful debts.
Employee benefits
Liabilities for annual leave, sick leave and long-service leave are accrued and recognised in the Statement of Financial Position.
There were no changes in accounting policies during the year.
2
Investment Income
| 2014 | 2013 | |||
|---|---|---|---|---|
| Group | Parent | Group | Parent | |
| ---------------- | --------------- | ------------ | --------------- | ------------ |
| $ | $ | $ | $ | |
| Global Equities - Unrealised | 2,158,925 | 2,158,925 | 2,737,475 | 2,737,475 |
| Bonds | 153,698 | 153,698 | 314,123 | 314,113 |
| Bank Deposits - interest | 339,167 | 318,190 | 290,516 | 290,516 |
| Interest Foregone on social loans | 30,027 | 30,027 | 20,005 | 20,005 |
| Investment Income | 2,681,817 | 2,660,840 | 3,362,119 | 3,362,119 |
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NZ Gazette 2014, No 95
✨ LLM interpretation of page content
💰
Whanganui Community Foundation Incorporated - Notes to the Financial Statements for the Year Ended 31 March 2014
(continued from previous page)
💰 Finance & RevenueInvestments, Pooled Funds, Valuation, Financial Assets, Taxation, GST, Accounts Receivable, Employee Benefits
💰 Investment Income for Whanganui Community Foundation Incorporated
💰 Finance & RevenueInvestment Income, Global Equities, Bonds, Bank Deposits, Interest Foregone