2318
THE NEW ZEALAND GAZETTE
No. 89

We report that we have examined the balance sheet of the Bay of Plenty Savings Bank as at 31 March 1980 and the profit and loss accounts for the year ended on that date, and have received all the information and explanations we have required. In our opinion, the above balance sheet and profit and loss accounts present fairly the financial position of the bank as at 31 March 1980 and the results of the operations for the year ended on that date, and were in general conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

GRANGER CRAIG TUNNICLIFFE AND CO.,
Chartered Accountants, Tauranga.

Tauranga, 15 May 1980.

The notes following form part of, and should be read in conjunction with, the above financial statements.

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.

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 Limited—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.
81,662

Less dividend received
6,400

75,262

$155,262

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 1980
$1,649,963

Capital—Capital commitments in respect of plant, land, and buildings as at 31 March 1980 totalled
$6,430

1745

WESTLAND SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1980

1980
$
1979
$

Depositors accounts—

Ordinary **
8,759,609
9,619,140

Special ..
1,669,306
1,346,039

10,428,915
10,965,179

Investment accounts
11,900,894
7,845,377

22,329,809
18,810,556

Other liabilities—

Interest accrued on investment accounts
301,765
248,129

Sundry creditors ..
27,282
12,115

329,047
260,244

Provision for donations for taxation—

Current
33,826
..

Deferred ..
52,479
40,016

86,305
40,016

Reserve Fund

Balance 1 April 1979
556,835
518,306

Transfer from appropriations
45,250
38,529

602,085
556,835

$23,372,246
$19,679,651

Current assets—

Cash on hand and at banks ..
931,623
816,006

Interest bearing deposits
716,700
551,100

Interest accrued on investments
159,502
118,606

Prepaid taxation ..
..
29,302

1,807,825
1,515,014

Investments—

New Zealand Government stock ..
7,849,217
6,778,841

Local authority securities
312,779
286,526

Mortgages ..
12,564,999
10,335,408

Personal loans ..
311,503
352,339

21,038,498
17,753,114

Fixed assets—

Land and buildings—cost price
466,249
304,025

Depreciation to date
34,458
30,042

431,791
273,983

Furniture and Equipment—

Cost price
235,530
217,126

Depreciation to date
141,398
79,586

94,132
137,540

525,923
411,523

$23,372,246
$19,679,651

P. ROSELLI, President.
J. J. LESLIE, General Manager.

WESTLAND SAVINGS BANK
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 1980

1980
$
1980
$
1979
$

Interest to depositors

On open accounts
252,109
252,257

On closed accounts
21,538
16,003

On matured investment accounts
629,153
326,920

Accrued on investment accounts
301,765
249,058

1,204,565
844,238

Administration expenses
605,633
461,365

Trustee honoraria
9,980
6,575

Depreciation ..
66,228
31,592

Provision for taxation
78,919
38,035

760,760
537,567

Net profit
70,250
49,969

$2,035,575
$1,431,774