30 JULY

THE NEW ZEALAND GAZETTE

RESERVE BANK OF NEW ZEALAND

PROFIT AND LOSS ACCOUNT

FOR YEAR ENDED 31 MARCH 1976

Balance of profit after making provision for rebate on bills not yet due and for sundry liabilities and contingencies including loss on realisation of investments ..
1976
$53,650,430
Loss for year carried to Profit and Loss Appropriation Account

1975
$28,894,642
772,118
28,122,524
$53,650,430

PROFIT AND LOSS APPROPRIATION ACCOUNT

Transfer from investment reserve to cover loss for year ended 31 March 1975

1976
$28,122,524
Net profit for year ended 31 March 1976

1975
3,763,438
$3,763,438

BALANCE SHEET AS AT 31 MARCH 1976

Gold
Overseas assets:
(a) Current accounts and short term bills
(b) Investments (see note 1 (c))
(c) Holdings of special drawing rights
New Zealand coin
Discounts
Advances:
(a) To the State
(b) To marketing accounts
(c) Export credits
(d) Other
Investments in New Zealand:
New Zealand Government securities (see note 1 (c))
Other assets

1976
$704,991
209,165,058
67,436,557
9,660,525
286,262,140
10,111,236
5,023,819
805,005
388,948,320
22,049,633
18,858,570
430,661,528
552,359,306
73,247,946
$1,358,370,966

1975
$704,991
101,964,742
119,568,371
4,807,352
226,340,465
6,456,935
6,600,000
675,033
392,890,356
15,362,113
83,788,998
492,716,500
306,461,330
59,752,022
$1,099,032,243

NOTES: 1. Statement of Accounting Policies—The particular accounting policies adopted by the Bank which significantly affect the measurement and reporting of its results and financial position are as follows:

(a) Foreign Currency Translations:
Overseas assets and liabilities at balance date are converted to New Zealand currency using the appropriate telegraphic transfer rates ruling at 31 March 1976.

(b) Fixed Assets and Depreciation Policy:
The Bank's buildings at Wellington and Christchurch are depreciated over their estimated economic life on a straight line basis at the rate of 1% per annum. The Bank's existing building at Auckland has been fully written off whilst preliminary expenditure on a new building is reflected at cost. The cost of all land acquired has been written off in prior years. All other fixed assets are similarly expensed in the year of acquisition.

(c) Investments:
Overseas investments are shown in the balance sheet at the New Zealand equivalent of foreign currency cost, NZ$67.4 million (market value at balance date NZ$60.1 million). New Zealand investments are shown at cost $552.36 million. (Market value at balance date $552.39 million).

(d) Exchange Rate Fluctuations:
Profits or losses arising from movements in the basic exchange rate are settled with Treasury, in terms of section 26 of the Reserve Bank of New Zealand Act 1964. The loss in respect of the year ended 31 March 1976, subject to such compensation, was NZ$67,763,476.

2. Contingent Liability—In respect of an investment of 250,000 £stg. 1 shares in the Commonwealth Development Finance Co. Limited of which 50p per share is uncalled: New Zealand equivalent $233,995.

A. R. LOW, Governor.
R. W. R. WHITE, Deputy Governor.

E. D. VALLANCE, Chief Accountant.

REPORT OF THE AUDITORS TO THE RESERVE BANK OF NEW ZEALAND

We have audited the accounts of the Reserve Bank of New Zealand for the year ended 31 March 1976 and have obtained all the information and explanations we have required.

In our opinion the above balance sheet and profit and loss account are properly drawn up so as to give respectively a true and fair view of the state of affairs of the Bank, as at 31 March 1976, and of its results for the year then ended.

CLARKE, MENZIES & CO.
HUTCHISON, HULL & CO.
Chartered Accountants.

Wellington, New Zealand.
30 June 1976.

Price 10c
BY AUTHORITY: A. R SHEARER, GOVERNMENT PRINTER, WELLINGTON, NEW ZEALAND--1976