2102

THE NEW ZEALAND GAZETTE

No. 65

Buildings .. .. .. 1% to 2½%
Office Furniture and Equipment .. 10% to 15%

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 for the year ended 31 March 1977 included 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 was increased by this amount.

The capital loss on these transactions was charged to the Reserve Fund.

AUDITORS’ REPORT

We report that we have examined the books and accounts of the Otago Savings Bank for the year ended 31 March 1978, and have received all the information and explanations we have required.

In our opinion, the accompanying Balance Sheet and Profit and Loss Account, together with the notes thereon, present fairly the financial position of the Bank at 31 March 1978, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

Hutchison, Hull & Co., and Gilfillan, Morris & Co.,
Chartered Accountants.

Dunedin.
1 May 1978.

4073

TARANAKI SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1978

Depositors’ accounts—

$ 1978

$ 1977

Ordinary accounts .. .. 27,138,408 26,841,417
Thrift club .. .. 3,797,030 3,672,520
Home loan, ownership and farm ownership 1,071,338 846,416
Christmas club .. 118,463 103,175

32,125,239 31,463,528
Personal cheque accounts 831,371 575,069
Investment accounts and term deposits 18,249,612 13,460,375

Total depositors’ balance 51,206,222 45,498,972
National savings depositors’ balance 37,538 47,194
Other liabilities—
Interest accrued on investment accounts and term deposits.. 343,700 247,008
Sundry creditors .. 68,691 51,658

Total other liabilities 412,391 298,666
Provision for donations.. 40,000 30,000
Provision for taxation 482,866 253,801
Reserve fund .. 2,734,747 2,372,672

$54,913,764 $48,501,305

Current assets—

$ 1978

$ 1977

Cash on hand and at bank 508,669 407,084
Fixed deposits 7,200,000 4,100,000

Transferable certificates of deposit 300,000 550,000
Less discount not yet amortised .. 6,137 32,814

293,863 517,186

Accrued interest on investments 750,249 504,423
Sundry debtors .. 33,776 53,678

Total current assets.. 8,786,557 5,582,371

Investments—
New Zealand Government stock .. 19,713,470 20,029,470
Less discount not yet amortised .. 232,846 122,913

19,480,624 79,906,557

Local authority stock at cost 152,637 112,504
Mortgages .. 24,411,528 21,581,413
Personal loans 532,801 429,844
Less unearned interest .. 58,686 42,029

474,115 387,815

Northern Trustee Computerbank Ltd.—
Ordinary shares 80,000 80,000
Plus share of accumulated profits (losses) 6,672 (17,284)

86,672 62,716

Northern Trustee Computerbank Ltd. debentures 33,000 33,000

Total investments 44,638,576 42,084,005

National savings securities—
New Zealand Government stock at cost 30,000 40,000
Cash on hand and at bank 7,538 7,194

Total national savings securities 37,538 47,194

Fixed assets—
Land .. 253,084 133,660
Buildings .. 814,291 593,389
Vehicles, office equipment, furniture, etc. 813,231 432,468

1,880,606 1,159,517
Less depreciation to date 429,513 371,782

Total fixed assets 1,451,093 787,735

$54,913,764 $48,501,305

The attached notes form part of and are to be read in conjunction with these accounts.

D. H. BLANCHETT, General Manager.
W. A. JOSEPHSON, President.