2 OCTOBER THE NEW ZEALAND GAZETTE 2959

Note Current Assets—
Cash on hand and at bank .. .. .. 776 (5)
Fixed deposits .. .. .. 3,319 3,119
Short term deposits .. .. .. 3,908 4,272
Prepayments (taxation) .. .. .. 87 106
Sundry debtors .. .. .. 542 424
Total current assets .. .. .. 8,632 7,916

Investments—
6. New Zealand Government stock .. .. .. 41,375 36,473
7. Local authority securities .. .. .. 2,087 2,221
Mortgages .. .. .. 58,876 50,257
Personal loans .. .. .. 2,182 1,560
8. Overdrafts .. .. .. 15 ..
Total ordinary investments .. .. .. 104,535 90,511
9. Company shares and debentures .. .. .. 189 153
10. Fixed assets— .. .. .. 3,440 3,420
.. .. .. $116,796 $102,000

J. R. GRACE, President.
S. R. McROBIE, General Manager.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 1980

Note Interest on Investments—
11. Total interest .. .. .. 10,059 7,651
Income from other sources .. .. .. 324 281
Subsidiary company income .. .. .. 42 32
.. .. .. $10,425 $7,964

Note Interest to depositors—
On open accounts .. .. .. 1,415 1,285
Closed accounts and matured
investment accounts .. .. .. 3,118 1,933
Accrued on investment accounts .. .. .. 1,274 894
Home lay-by accounts suspensory
free deposits .. .. .. .. 1
.. .. .. $5,807 $4,113
12. Administrative Expenses .. .. .. 3,593 3,010
13. Profit/Loss on securities .. .. .. 33 (6)
Trustees’ Honoraria .. .. .. 8 5
Depreciation .. .. .. 259 229
Provision for Taxation .. .. .. 322 249
Net Profit: carried down .. .. .. 403 364
.. .. .. $10,425 $7,964

Reserve funds—
Provision for donations .. .. .. 50 30
Reserve fund changes .. .. .. 36 10
Closing balance .. .. .. 2,060 1,743
.. .. .. $2,146 $1,783

  Reserve fund opening balance ..  ..  ..  1,743    1,419
  Net profit: brought down     ..  ..  ..  403      364
                              ..  ..  ..  $2,146   $1,783

STATEMENT OF CHANGES IN FINANCIAL POSITION—YEAR ENDED 31 MARCH 1980

Source of funds—
Deposit Increases .. .. .. .. 14,873
Loan Repayments—
Mortgage .. .. .. .. 7,356
Personal Loans .. .. .. .. 1,643
Local Authority Securities .. .. .. .. 849
Profit before Tax .. .. .. .. 716
Loss on Trading Securities .. .. .. .. (380)
Dividend .. .. .. .. 7
Depreciation (non-cash item) .. .. .. .. 259 602
.. .. .. .. $25,323

Use of Funds—
Mortgage advances .. .. .. .. 16,690
New Zealand Government stock .. .. .. .. 4,865
Personal loans .. .. .. .. 2,281
Fixed assets .. .. .. .. 361
Short term finance .. .. .. .. 1,126
.. .. .. .. $25,323

NOTES

1. Statement of Accounting Policies—
   The general accounting principles as recommended by the New Zealand Society of Accountants for the measurement and reporting of profit and financial position on an historical cost basis have been followed by the Bank.
   The following particular accounting principles which materially affect the measurement and reporting of profit and financial position have been applied.

(A) Taxation:
The charge for income tax is the amount of tax liability in respect of the accounting profit for the current year. Timing differences between accounting and taxation records are included under the heading “Provision for Deferred Taxation”, with the exception of timing differences which, on the basis of reasonable probability, are expected to continue in the future.
(Refer Note 14).

(B) Investments:
(a) The Bank’s one third shareholding in the Northern Trustee Computerbank Limited as at the company’s 31 May 1979 balance date has been treated on an equity accounting basis.
(b) Discounts and premiums on the purchase of government stock have been calculated to bring the cost price less accrued interest on purchase to nominal value by maturity.
(c) Profits and losses on the sale, purchase and issue of securities have been charged in the current year, except for losses on the sale of government stock sold to invest into new issues which have been amortized over the life of the stock purchased.
(d) A prior year provision on an estimated future loss on securities has been adjusted by amortizing the difference to Reserve Funds over the next three years (Refer note 14).
(e) Other investments are recorded at cost plus accrued interest.

(C) Fixed Assets and Depreciation:
Land is recorded at the higher of original cost or the 1976 Government valuation. All other assets are recorded at cost less depreciation to date. The cost of lease goodwill has been spread evenly over the terms of the leases. Straight-line depreciation as recommended by the New Zealand Society of Accountants Statement of Standard Accounting Practice No. 3 has not otherwise been applied and maximum rates of depreciation as approved by the Commissioner of Inland Revenue have been used. This is not considered to have a significant effect on the financial statements for the year ended 31 March 1980.

(D) Changes:
There have been no changes in accounting principles used that would significantly affect profit or financial position.

2. Deposits—
   1980 1979
   ($000) ($000)
   Call to 1 year .. .. .. 91,552 82,099
   Up to 2 years .. .. .. 11,342 7,315
   Up to 3 years .. .. .. 9,496 8,483
   Accrued Interest .. .. .. 1,294 894
   .. .. .. 113,664 98,791

3. Creditors — includes Hire Purchase Balances .. .. .. 225 342

4. Provisions—
   Taxation—
   Current .. .. .. 438 164
   Deferred .. .. .. 50 278
   Donations .. .. .. .. 30
   .. .. .. 488 472