30 JUNE
THE NEW ZEALAND GAZETTE
1873

(4) Taxation—Taxation charged against profits for the year is the estimated expense for the year. Tax allocation accounting has been adopted by the Bank for significant timing differences in respect of accrued investment income, depreciation, and capital profits and losses on Government stock purchases and sales.

C. Valuation of Assets:

(1) Current Assets and Investments—All current assets and investments are shown at cost with the exception of New Zealand Government stock. On the basis that Government stock will normally be held to maturity, the bank considers it appropriate to record such stock at face value. Differences between cost and face value are transferred to the reserve fund at the date of purchase.

NOTE 2: The taxation provision includes a tax benefit of $105,700 arising from switches to higher yielding Government stock, and as a result profit after taxation transferred to the profit and loss appropriation account is increased by this amount. The capital loss on these transactions has been charged to the reserve fund.

T. K. S. SIDEY, President.
A. L. FLEURY, General Manager.

GILFILLAN & CO.
HUTCHISON, HULL & CO.}
Chartered Accountants.

Dunedin
29 April 1977.

SOUTHLAND SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1977

Depositors’ accounts
Ordinary accounts .. .. .. 54,072,786
Thrift club accounts .. .. 76,981
(Sub-total) .. .. .. 54,149,767
Investment accounts .. .. 8,381,150
Home ownership accounts .. .. 232,439
Farm ownership accounts .. .. 39,109
Housing bonds .. .. .. 98,320
Total liability to depositors .. .. 62,900,785
National savings accounts .. .. 38,699
Add interest suspense account .. 1,008
(Sub-total) .. .. .. 62,940,492

Other liabilities
Interest accrued on investment accounts .. 301,937
Interest accrued on housing bonds .. .. 2,681
Owing to other trustee banks .. .. ..
Remittances in transit .. .. ..
Staff provident fund .. .. ..
Sundry creditors .. .. .. 1,920
Others (detail) .. .. ..
Total other liabilities .. .. .. 306,538
Provision for donations .. .. .. 50,000
Provision for taxation
Current .. .. .. 106,060
Deferred .. .. .. 59,944
Reserve fund .. .. .. 4,362,926

Current assets
Cash on hand and at bank .. .. 1,800,290
Fixed deposits .. .. .. 4,900,000
Interest accrued on investments .. 911,096
Remittances in transit .. .. ..
Sundry debtors .. .. .. 5,984

Investments
New Zealand Government stock .. 28,646,093
Local authority securities .. .. 6,971,130
Mortgages .. .. .. 21,658,313
Personal loans .. .. .. 583,879
Total ordinary investments .. .. 57,859,415

National savings securities
New Zealand Government stock .. 39,707
Cash on hand and at banks.. .. ..
Total national savings securities .. 39,707

Fixed assets: Price Depreciation Book Value
Land and 2,468,656 268,371 2,200,285
Buildings
Vehicles
Equipment
Furniture etc. 552,239 443,056 109,183
Total fixed assets .. .. .. 2,309,468

67,825,960

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1977

Interest to depositors
On open accounts .. .. .. .. 1,307,262
Closed accounts, matured
Investment accounts and redeemed housing bonds.. 244,515
Accrued on investment accounts and housing bonds 304,618
Home layby accounts—suspensory free deposits ..
(Subtotal) .. .. .. .. 1,856,395
Administration expenses .. .. .. 1,308,260
Trustees’ honoraria .. .. .. 7,338
Depreciation .. .. .. .. 42,331
Provision for taxation .. .. .. 342,918
Net profit carried down .. .. .. 525,465

4,082,707

Interest on investments
From New Zealand Government stock .. .. 1,555,665
From local authorities stock .. .. 430,029
From mortgages .. .. .. 1,529,131
From personal loans .. .. .. 41,621
From other sources .. .. .. 406,687
(Subtotal) .. .. .. .. 3,963,133
Income from other sources .. .. 119,574

4,082,707

APPROPRIATION ACCOUNT

Provision for donations .. .. .. 50,000
Transfer to reserve .. .. .. 475,465

525,465

Net profit brought down .. .. .. 525,465

525,465

GORDON G. GRIEVE, President.
L. R. D. PAYNE, General Manager.

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

1. That 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.

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 Southland Savings Bank’s affairs