Note 21: Related party transactions
Te Motu Regional Economic Development Trust: Model financial statements 2008/09.
Note 20: Contingencies
Related party transactions
| NZ IAS 24.12 | The Trust was settled by Te Motu Regional Council and receives a significant amount of operating grants from the Council to deliver its objectives as specified in the Trust deed. The Te Motu Regional Council is the ultimate controlling party of the Trust. | ||
| NZ IAS 24.17,18 | The following transactions were carried out with related parties during the year:18 | ||
| Te Motu Regional Council | |||
| The Trust has an outstanding loan at a nil interest rate of $36,313 (2008 $35,000) with the Council. Interest expense of $4,000 (2008 $3,578) has been recognised in the statement of financial performance for this loan. | |||
| Purchase of goods and services of $42,478 (2008 $32,045) from the Council on normal commercial terms. The total amount of operating grants received from the Council is disclosed in the statement of financial performance. With the exception of the Council loan, there are no other outstanding balances at balance date (2008 $nil). Capital contributions of $nil (2008 $63,200) were also received from the Council. | |||
| Key Management Personnel | |||
| Purchase of advertising services of $82,500 (2008 $43,478) from Cool Company, a company in which Trustee 1 is the sole shareholder, on normal commercial terms. At balance date there was $21,074 owing (2008 $nil). | |||
| Purchase of goods and services of $nil (2008 $24,479) from City Development Company, which Trustee 3’s husband is a board member, on normal commercial terms. There were no outstanding balances at balance date (2008 $1,247). | |||
| NZ IAS 24.17(c),(d) | No provision has been required, nor any expense recognised, for impairment of receivables from related parties (2008 $nil). | ||
| Key management personnel compensation | |||
| Actual 2009 |
Actual 2008 |
||
|---|---|---|---|
| NZ IAS 24.16(a) | Salaries and other short-term employee benefits | 421,127 | 401,981 |
| NZ IAS 24.16(b) | Post-employment benefits | 0 | 0 |
| NZ IAS 24.16(c) | Other long-term benefits | 12,000 | 3,000 |
| NZ IAS 24.16(d) | Termination benefits | 0 | 0 |
| NZ IAS 24.16 | Total key management personnel compensation | 433,127 | 404,981 |
| Good practice | Key management personnel include all Trustees, the Chief Executive, and the other 3 members of the Trust’s management team.19 | ||
18: Disclosures that related party transactions were made on terms equivalent to those that prevail in arm’s length transactions are made only if such terms can be substantiated (NZ IAS 24.21).
19: This disclosure provides useful information to readers as to who are key management personnel.
