FirstChoice Wholesale Investments - Colonial First State
FirstChoice Wholesale Investments - Colonial First State
FirstChoice Wholesale Investments - Colonial First State
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COLONIAL FIRST STATE - FIRSTCHOICE WHOLESALE INVESTMENT FUNDSNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30 JUNE 20111. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(a)Basis of PreparationThe financial report is a general purpose financial report, which has been prepared in accordance with the Funds'Constitutions and the requirements of the Corporations Act 2001, which includes Accounting Standards. Othermandatory professional reporting requirements have also been complied with.The financial report is prepared on the basis of fair value measurement of assets and liabilities except where otherwisestated.The Balance Sheets are presented on a liquidity basis. Assets and liabilities are presented in decreasing order ofliquidity and are not distinguished between current and non-current. All balances are expected to be settled within twelvemonths, except for financial assets held for trading, loans and net assets attributable to unitholders. The amountsexpected to be recovered or settled after more than twelve months in relation to these balances cannot be reliablydetermined, except as otherwise stated.The financial report was authorised for issue by the Directors of the Responsible Entity on 26 August 2011.The current reporting period for the financial report is from 1 July 2010 to 30 June 2011. The comparative reportingperiod is from 1 July 2009 to 30 June 2010.Both the functional and presentation currency of the Funds are Australian dollars.(b)<strong>State</strong>ment of ComplianceThe financial report complies with Australian Accounting Standards, which include Australian equivalents to InternationalFinancial Reporting Standards ('AIFRS'). Compliance with AIFRS ensures that the financial report, comprising thefinancial statements and notes thereto, complies with International Financial Reporting Standards ('IFRS').(c)<strong>Investments</strong> in Financial Assets and Liabilities Held for TradingClassificationThe Funds' investments are classified as held for trading and initially recognised at fair value not including transactioncosts, which are expensed in the <strong>State</strong>ments of Comprehensive Income.Recognition/DerecognitionThe Funds recognise financial assets and financial liabilities on the date it becomes party to the contractual agreement(trade date) and recognises changes in fair value of the financial assets or financial liabilities from this date.The derecognition of a financial instrument takes place when the Funds no longer control the contractual rights thatcomprise the financial instrument, which is normally the case when the instrument is sold, or all the cash flowsattributable to the instrument are passed through to an independent third party.MeasurementAfter initial recognition, the financial assets held for trading are revalued to fair value at each reporting date.For financial assets held for trading that are actively traded in organised financial markets, fair value is determined byreference to Exchange quoted market bid prices at the close of business on the balance date.Page 43