Note 14
Borrowings
Model Financial Statements: Te Motu Regional Economic Development Trust 2010/11
| NZ IAS 1.77 | Actual 2011 |
Actual 2010 |
|
|---|---|---|---|
| NZ IAS 1.69 | Current portion | ||
| Bank overdraft | 2,687 | 0 | |
| Loan from Te Motu Regional Council | 7,313 | 10,000 | |
| Total current portion | 10,000 | 10,000 | |
| NZ IAS 1.69 | Non-current portion | ||
| Loan from Te Motu Regional Council | 29,000 | 25,000 | |
| Total non-current portion | 29,000 | 25,000 | |
| Loans from Te Motu Regional Council | |||
| NZ IFRS 7.31 | The loans from Te Motu Regional Council, with a face value of $55,000 (2010 $60,000), are issued at a nil interest rate. There are no loan covenants attached to the loans.19 | ||
| Security | |||
| NZ IFRS 7.31 | The loans from Te Motu Regional Council are unsecured. | ||
| NZ IAS 7.50(a) | The bank overdraft is unsecured. The maximum amount that can be drawn down against the overdraft facility is $10,000 (2010 $10,000). There are no restrictions on the use of this facility. | ||
| NZ IFRS 7.25 | Fair value | ||
| The fair value of non-current borrowings is $25,895 (2010 $22,395). | |||
| NZ IFRS 7.27(a) | The fair value is calculated using a discounted cash flow method. This method discounts future loan repayments using market interest rates for an unsecured loan with similar credit quality and terms to maturity similar to maturity of the relevant loans. The weighted average discount rate used was 9.5% (2010 9.3%). | ||
| NZ IFRS 7.25,29(a) | The carrying amounts of borrowings repayable within one year approximate their fair value. | ||
19: Information about loan covenants and whether these have been complied with during the financial year should be disclosed.
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