✨ Financial Statements Notes
22 AUGUST 2014 NEW ZEALAND GAZETTE, No. 99 2759
WELLINGTON COMMUNITY TRUST
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 31 March 2014
(c) Property, plant and equipment
Property, plant and equipment is stated at cost less accumulated depreciation and impairment.
(d) Depreciation
Depreciation has been calculated as follows using the diminishing value method:
- Furniture 9% - 18%
- Equipment 33% - 80.4%
(e) Investments including investments in managed funds
Shares in listed companies and quoted fixed interest investments are designated as "financial assets at fair value through profit or loss" as the portfolios are managed on a fair value basis in accordance with a documented investment strategy. They are initially recorded at cost and subsequently revalued to bid price each balance date. Gains and losses are recorded in the Statement of Comprehensive Income as part of the investment income.
(f) Financial instruments
Financial instruments are recognised if the Trust becomes a party to the contractual provisions of the instruments. Financial assets are initially measured at fair value plus transaction costs except for those classified as fair value through profit or loss which are initially measured at fair value. Financial assets are derecognised if the Trust’s right to the cash flows from the financial assets expire or if the Trust transfers a financial asset to another party without retaining control or substantially all risks and rewards of the asset. Regular purchases and sales of financial assets are accounted for at trade date. Financial liabilities are derecognised if the Trust’s obligations, specified in the contract, expire, are discharged or cancelled.
Held-to-maturity investments
If the Trust has the intent and ability to hold debt securities to maturity then they are classified as held-to-maturity. Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method, less any impairment losses.
Investments at fair value through profit or loss
An instrument is classified at fair value through profit and loss if it is held for trading or is designated as such upon initial recognition. Financial instruments are designated at fair value through profit and loss if the Trust manages such investments and makes purchase and sale decisions based on their fair value. They are initially recorded at cost and subsequently revalued.
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NZ Gazette 2014, No 99
✨ LLM interpretation of page content
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Notes to the Financial Statements of The Community Trust of Wellington
(continued from previous page)
💰 Finance & Revenue9 June 2014
Financial Statements, Notes, Property, Depreciation, Investments, Financial Instruments