3048
THE NEW ZEALAND GAZETTE
No. 11

BALANCE SHEET AS AT 31 MARCH 1980

Investments—
New Zealand Government stock (note 4) | 21,451,813 | 19,256,027
Local authority stock (note 4) | 780,091 | 582,952
Mortgages | 28,533,080 | 28,282,703
Fixed and short term deposits | 4,550,000 | 4,020,000
Personal loans | 730,726 | 554,637
Total investments | 56,045,710 | 52,696,319

Fixed assets—
(At cost less depreciation) (note 5) | 658,965 | 648,926

$58,442,592 | $54,206,135

The references in these accounts are to the numbered notes on the following pages which form an integral part of, and are to be read in conjunction with, these accounts.

H. L. M. PEIRSE, President.
M. R. JENSEN, General Manager.

19 May 1980.

AUDITORS’ REPORT

We report that we have examined the books and accounts of the Wellington Savings Bank for the year ended 31 March 1980 and have received all the information and explanations we have required.

In our opinion, the accompanying balance sheet and profit and loss account present fairly the financial position of the bank as at 31 March 1980 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 AND CO.
Chartered Accountants.

Wellington, N.Z., 19 May 1980.

NOTES TO THE ACCOUNTS

1. Statement of accounting policies—The general accounting principles recommended by the New Zealand Society of Accountants for the measurement and reporting of profits and losses under the historical cost method have been adopted in the preparation of these financial statements.

The following particular accounting policies which materially affect the measurement of profit and the financial position have been consistently applied.

Taxation—The charge for income tax is the amount of the tax liability in respect of the accounting profit for the year and includes both current and deferred tax.

The liability for deferred taxation arises from items of income and expenditure being included in taxation calculations in periods different from those in which they are dealt with in the financial accounts. The significant timing differences relate to accrued interest income, discounts earned and premiums paid on Government Stock and depreciation. Commencing in 1975, the Bank has been providing for deferred taxation on accrued income over six years, however this procedure is now being accelerated according to available profits.

Valuation of Government Stock—Government Stock is valued at cost plus the net of discounts earned and premiums paid amortised on a straight-line basis from date of purchase to date of maturity.

Depreciation—Fixed assets are being depreciated on the straight-line method at rates which will write off the cost over their estimated useful lives. The principal rates are:

Buildings | .. | 3 percent to 5 percent
Furniture and fittings | .. | 10 percent to 20 percent
Computer equipment | .. | 20 percent to 25 percent

2. Administration expenses—

3. Investment income—

4. Investments—

Since the above stocks are generally held until dates of maturity, differences in the above bases of valuation have little financial effect on the Bank.

5. Fixed assets (at cost)—

The current Government valuation of land and buildings is $525,000.