2 AUGUST
THE NEW ZEALAND GAZETTE
2327

BALANCE SHEET AS AT 31 MARCH 1979

Depositors’ accounts—
Ordinary accounts .. .. 43,050,595
Personal cheque accounts.. .. 2,920,389
Investment deposits .. .. 27,465,642
Housing bonds .. .. 53,550

Other liabilities—
Interest accrued on investment deposits 854,795
Mortgages and term advances .. 318,752
Sundry creditors .. .. 113,042
Provision for current taxation .. 414,623

Provision for donations .. .. 1,701,212
Provision for deferred taxation (note 4b) 182,865
Reserve fund .. .. 1,074,415

Current assets—
Cash on hand and at bank .. .. 1,380,586
Fixed deposits .. .. 1,050,000
Short-term investments .. .. 2,570,669
Interest accrued on investments 1,251,337
Sundry debtors .. .. 9,505

Investments—
New Zealand Government stock .. 28,555,646
Local authority securities .. .. 1,095,893
Mortgages .. .. 38,127,118
Personal loans (note 3) .. .. 1,401,040
Debentures—Northern Trustee Computerbank Ltd. .. 33,000
Shares—Northern Trustee Computerbank Ltd. (note B) .. 119,594

Fixed assets—
Cost Depreciation Book Value
Land and buildings .. 474,627 24,312 450,315
Vehicles, equipment, furniture etc. .. 775,634 346,669 428,965
Total fixed assets .. 1,250,261 370,981 879,280

NOTES TO THE ACCOUNTS

(A) Statement of Accounting Policies—The general accounting principles recommended by the New Zealand Society of Accountants for the measurement and reporting of results on an historical cost basis, consistent with previous years, have been used in the preparation of the financial accounts.

The following particular principles have been applied:

1. Depreciation—Straight-line depreciation has been applied to the Bank’s E.D.P. equipment to write it off over the period of its expected useful life. All other assets have been depreciated at the rates allowable by the Inland Revenue Department. The difference between these rates, and the straight-line method, is not considered to be material.

2. Government Stock—It is the Bank’s policy to amortise discounts and premiums on Government stock securities over the term of the investment on a straight-line basis and to show the value of the stock in the balance sheet at its cost price adjusted by the amortised discount to date.
   The market value of the Bank’s Government stock holding is $24,832,356.

3. Personal Loans—The Bank’s policy is to add total interest due to the loan when advanced, and interest is brought into revenue on the basis of the “Rule of 78”.

4. Taxation—(a) The provision for Income Tax charged in the profit and loss account is the calculated tax liability in respect of the accounting profit after adjusting for permanent differences.
   (b) The provision for deferred taxation arises from timing differences relating to income accrued into the accounts but not received as at balance date.

(B) Shares—Northern Trustee Computerbank Ltd.—These shares have been shown in the accounts according to the standard accounting practice adopted by the New Zealand Society of Accountants for an associate company.

Shares issued to the Bank (100,000 shares at $1 per share) .. .. .. .. $100,000
Shares paid up by the Bank (100,000 shares paid up to 80 cents per share) .. .. 80,000
Plus share of accumulated profit of Northern Trustee Computerbank Ltd. .. .. 39,594

$119,594

The Bank has a contingent liability for uncalled capital of 100,000 shares at 20 cents per share .. $20,000

(C) Commitments—
Mortgages—mortgages approved but not advanced as at 31 March 1979 .. .. .. .. $1,052,455

Capital—capital commitments in respect of plant, land, and buildings as at 31 March 1979 totalled $55,646

3079

SOUTHLAND SAVINGS BANK
NOTES TO THE ACCOUNTS

Statement of Accounting Policies—The general accounting principles recommended by the New Zealand Society of Accountants for the measurement and reporting of results on an historical basis have been adopted in the preparation of the financial statements.

The particular accounting principles which the Bank considers appropriate for the measurement of profit and financial position are detailed below:

1. Revenue—(a) Interest accrued on investments has been taken into account.
   (b) Personal Loans—The “Rule of 78” has been used in determining interest accrued.

2. Depreciation—Calculation has been made on basis of Inland Revenue Department rates. First year depreciation has been claimed where applicable. Straight line basis for calculation of depreciation has not been adopted as it is considered the difference in the amount of depreciation would not be material.

3. New Zealand Government Stock—In accordance with established policy New Zealand Government stock has been shown at face value. Prior to 1 April 1975, certain parcels of New Zealand Government stock were purchased at a discount.

4. Taxation—No provision has been made for “deferred taxation”.

5. During the year repairs and maintenance costs of extraordinary amounts were incurred in conjunction with the remodeling and extending of Invercargill Branch and Head Office premises and also Strathern Sub-branch premises.

These amounts which total $527,593 have been certified as expenditure of a revenue nature by the Bank’s architects.

This expenditure has accordingly been charged to revenue and has the tendency to distort any comparison of the financial result of the year ended 31 March 1979 with that of any previous year.

Government stock reconciliation—
Cost price .. .. .. .. $29,770,641
Add capital gain on purchase .. .. 70,017

$29,840,658

National savings securities—
New Zealand Government stock purchased at par

SOUTHLAND SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1979

Depositors’ accounts—
Ordinary accounts .. .. 62,506,139
Housing bonds .. .. 106,250
Investment accounts .. .. 7,472,540
Term deposits .. .. 13,522,815

Total liability to depositors .. .. 83,607,744
National savings accounts .. .. 23,983
Add interest suspense account .. .. 629

24,612

83,632,356