30 JUNE
THE NEW ZEALAND GAZETTE
1871

BALANCE SHEET

Depositors’ accounts:

1976 $ 1976 $
Personal cheques .. .. 2,406,062
Ordinary accounts .. 286,279,543
Net online deposits in transit .. -

$288,685,605

Housing bonds .. .. 79,516,284

Total liability to depositors 368,201,889

National savings accounts 553,310
Add interest suspense accounts 11,108

564,418

Other liabilities:

Interest accrued on investment accounts .. .. 2,640,668
Interest accrued on housing bonds .. -
Staff provident and welfare funds 2,661,716
Sundry creditors .. .. 119,834

Total other liabilities .. .. 5,422,218
Provision for donations .. .. 350,000
Provision for current taxation .. 1,529,122
Provision for deferred taxation .. 1,383,069
Reserve fund .. .. 19,497,862

$396,948,578

Current assets:

1976 $ 1976 $
Cash on hand and at bank .. 4,113,758
Fixed deposits .. .. 23,500,000
Interest accrued on Investments .. 3,668,140
Prepaid Computer leasing charges .. 44,468
Owing by other trustee savings banks .. -

31,326,366

Investments:

New Zealand Government stock .. 174,464,824
Local authority securities .. 28,490,017
Mortgages .. .. 149,807,966
Personal loans .. .. 1,507,234

Total ordinary investments .. 354,270,041

National savings securities:
New Zealand Government stock 564,418

Total national savings securities: 564,418

Fixed assets

Cost Price Depreciation to Date Book Value
Land and buildings .. .. .. 7,850,571
Vehicles, equipment, furniture, etc. .. .. 2,937,182

Total fixed assets .. .. .. 10,787,753

$396,948,578

BALANCE SHEET

Depositors’ accounts:

1977 $ 1977 $
Personal cheques .. .. 4,346,941
Ordinary accounts .. 298,814,748
Net online deposits in transit .. 2,707,917

305,869,606

Housing Bonds .. .. 858,310
Investment accounts .. 97,817,127

Total liability to depositors 404,545,043

National savings accounts 462,156
Add interest suspense accounts 9,511

471,667

Other liabilities:

Interest accrued on investment accounts .. .. 3,589,977
Interest accrued on housing bonds 22,974
Staff provident fund .. .. -
Sundry creditors .. .. 198,108
Other (detail) .. .. -

Total other liabilities .. .. 3,811,059
Provision for donations .. .. 400,000
Provision for current taxation .. 63,075
Provision for deferred taxation .. 1,964,043
Reserve fund .. .. 22,504,536

$433,759,423

Current assets:

1977 $ 1977 $
Cash on hand and at bank .. 5,226,388
Fixed deposits .. .. 25,000,000
Interest accrued on investments .. 4,012,631
Owing by other trustee savings banks .. 275,000
Prepaid computer leasing charges 775,000
Sundry debtors .. .. 74,308

35,363,327

Investments:

New Zealand Government stock .. 183,891,500
Local authority securities .. 28,056,899
Mortgages .. .. 171,070,986
Personal loans .. .. 3,518,348

Total ordinary investments .. 386,537,733

National savings securities:
New Zealand Government stock 471,667

Total national savings securities: 471,667

Fixed assets

Cost Price Depreciation to Date Book Value
Land and buildings .. .. .. 8,307,257
Vehicles, equipment, furniture, etc. .. .. 3,079,439

Total fixed assets .. .. .. 11,386,696

$433,759,423

A. L. JENKIN, President,
D. F. STEPHENS, General Manager.
Auckland 17 May, 1977

We, the undersigned, being the auditors of the Auckland Savings Bank, appointed in terms of section 29 (3) of the Trustee Savings Banks Act 1948, report:

(1) We have examined the books, accounts, and vouchers of the bank and have received all the information and explanations we have required.

(2) We have verified the cash, investments, securities, and assets of the bank as at 31 March 1977.

(3) The general manager has certified that, to the best of his knowledge and belief, all requirements of the Trustee Savings Banks Act 1948, and regulations thereunder have been complied with.

(4) 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 the Auckland Savings Bank’s affairs as at 31 March 1977 and of the results of its business for the year ended on that date.

D. C. O’HALLORAN, B.COM., F.C.A.
CLARKE, MENZIES & CO., Auditors.
Chartered Accountants

STATEMENT OF ACCOUNTING POLICIES

The general accounting principles recommended by the New Zealand Society of Accountants for the measurement and reporting of profits on an historical basis have been followed. Particular accounting policies used which significantly affect the measurement of the Bank’s profit and its financial position, are set out below:

(a) Personal Loan Interest: Interest on personal loans is apportioned over the term of the loan, using the “Rule of 78” method.

(b) Depreciation: Fixed assets are being depreciated on a straight line basis at rates which will write off the cost over their estimated useful lives. The principal write off periods are:

Buildings — 40-100 years.
Furniture, fittings and office equipment — 10-15 years.
Motor vehicles — 3 years to estimated residual value of 60% of cost.

In previous years depreciation was charged on a diminishing value basis on assets other than buildings. The effect of the change is to increase net profit after taxation by $77,200.