Statement of Accounting Policies
for the year ended 30 June 2005
Reporting entity
The Department of Building and Housing manages the Residential Tenancies Trust Account pursuant to the Public Finance Act 1989 and the Residential Tenancies Act 1986. The Department took over direct management of the Residential Tenancies Trust Account on 18 August 1992.
All interest arising from any investment in the Residential Tenancies Trust Account belongs to the Crown and is treated as other revenue to the Department of Building and Housing.
Investments are held in approved securities under the Public Finance Act 1989.
The Department of Building and Housing pays costs associated with the management of the Residential Tenancies Trust Account as Department expenses.
Measurement System
These financial statements have been prepared on the basis of modified historical cost except for certain items with specific accounting policies outlined below.
Accounting Policies
Accounts Receivable
Accounts receivable are stated at estimated realisable value.
Taxation
The Residential Tenancies Trust Account is exempt from income tax in terms of the Income Tax Act 1994. Accordingly, no charge for income tax has been provided for.
Investments
Investments are not generally traded but held to maturity. Investments in bonds are valued at cost with premiums and discounts on investments accounted for on a yield to maturity basis. Investments in bank deposits are valued at cost.
Cash
Cash is defined as coins, notes and demand deposits in the Trust bank account and other deposits held on call.
Revenue
The Trust derives revenue from interest on investments. Interest on investments is accrued on a monthly basis.
Financial instruments
The Residential Tenancies Trust Account is party to financial instruments as part of its normal operations. These financial instruments include accounts payable and receivable, cash, deposits and investments. Revenue and expenditure in relation to all financial instruments is recognised in the Statement of Financial Performance.
Except for those items covered by a separate accounting policy, all financial instruments are shown at estimated fair value.
Changes in accounting policies
There have been no changes in accounting policies. All policies have been applied on a basis consistent with other years.
Statement of Financial Performance
for the year ended 30 June 2005
| |
2005
Actual
$000 |
2004
Actual
$000 |
| Revenue |
| Interest earned from government stock |
387 |
650 |
| Interest earned from bank deposits |
10,805 |
8,464 |
| Total Revenue |
11,192 |
9,114 |
| |
| Expenditure |
| Interest to Department of Building and Housing |
11,192 |
9,114 |
| Operating Surplus |
- |
- |
Reconciliation of Movements in Bondholders' Funds
for the year ended 30 June 2005
| Bondholders' Funds at 1 July |
167,720 |
147,332 |
| |
| Total Recognised Revenues and Expenses for the Year |
| Bonds lodged |
109,707 |
102,693 |
| Bonds refunded |
(90,362) |
(82,305) |
| Bondholders' Funds at 30 June |
187,065 |
167,720 |
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