1860
THE NEW ZEALAND GAZETTE
No. 77

Current assets--
Cash on hand and at
Banks .. 1,282,117 931,623
Interest bearing deposits 692,100 716,700
Interest accrued on in-
vestments .. 259,358 159,502
Debtors & prepayments 86,138
2,319,713 1,807,825

Investments--
N.Z. Government stock 9,731,448 7,849,217
Local authority securi-
ties .. 298,552 312,779
Mortgages .. 14,900,635 12,564,999
Personal loans 618,559 311,503
25,549,194 21,038,498

Fixed assets--
Land and buildings
Cost price .. 477,746 466,249
Depreciation to date .. 38,880 34,458
438,866 431,791

Furniture and Equipment--
Cost price .. 396,464 235,530
Depreciation to date .. 111,924 141,398
284,540 94,132
723,406 525,923
$28,592,313 $23,372,246

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

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 1981

1981 $ 1980 $
Interest to depositors--
On open accounts .. 245,103 252,109
On closed accounts .. 19,918 21,538
On matured investment
accounts .. 1,106,872 629,153
Accrued on investment
accounts .. 425,194 1,797,087 301,765 1,204,565

Administration expenses 897,989 605,633
Trustees honoraria .. 8,345 9,980
Depreciation .. 51,360 66,228
Provision for taxation .. 78,919
957,694 760,760

Net profit .. 30,909 70,250
$2,785,690 $2,035,575

Interest on investments--
From N.Z. Government
stock .. 813,203 604,900
From local authorities 25,120 21,921
From mortgages 1,698,745 1,216,024
From personal loans 79,980 40,980
From other sources 93,002 98,440
2,710,050 1,982,265

Income from other sources--
Commission .. 62,878 40,642
Rents .. 12,762 12,668
75,640 53,310
$2,785,690 $2,035,575

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE YEAR ENDED
31 MARCH 1981

1981 $ 1980 $
Donations .. 7,000 25,000
Balance transferred to Reserve Fund .. 23,909 45,250
$30,909 $70,250

1981 $ 1980 $
Net profit .. 30,909 70,250
Donations overprovision in previous year
$30,909 $70,250

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 MARCH 1981

Statement of Accounting Policies

1. (a) General Accounting Policies—The General Accounting
   Policies recognised as appropriate for the measurement and
   reporting of results and financial position under this historic cost
   method of accounting have been adopted on a basis consistent
   with the previous year, except as explained in note 2 below.

(b) Recognition on Income—The income earned is recorded
on an accrual basis. Interest on personal loans is calculated ac-
cording to the rule of 78.

(c) Valuation of Investments—All 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
nominal value. Differences between cost and nominal value are
immaterial and have been transferred to interest received or
interest paid at the date of purchase.

(d) Fixed Assets and Depreciation—Fixed assets are valued
at cost less accumulated depreciation. Depreciation has been
charged using the straight line method based on the economic
life of the assets.

(e) Taxation—No taxation is payable on this year’s profit.
The income tax effect of all timing differences between accounting
and taxation records is included under the heading “deferred
taxation” with the exception of those timing differences, the
reversal of which are not expected to give rise to a liability for some
considerable period ahead.

2. Changes in Accounting Policy—Interest accrued on investment
   accounts has been calculated at the full rate payable on the as-
   sumption that deposits will continue unbroken to maturity. In
   previous years interest accrued had been calculated at a lower rate
   which allowed for investments that did not reach maturity. The
   effect of this policy change is that $12,125 has been added to the
   interest expense and interest accrued on investment accounts.
   Net profit has been decreased by a similar amount.

3. Prepayments—In previous years prepaid expenditure has
   been taken into account but not disclosed separately because the
   amounts were not material. This year prepayments have increased
   significantly and accordingly are shown separately.

4. Commitments—Mortgages approved, but not yet uplifted
   $304,829.

REPORT OF THE AUDITORS

We report that we have audited the books and accounts of the
Westland Savings Bank of the year ended 31st March 1981, and
have obtained all the information and explanations we have
required.

In our opinion the accompanying profit and loss account,
balance sheet and notes presents fairly the financial position of the
bank at 31st March 1981, and the results of the year ended on
that date, determined in accordance with the historical cost basis
of accounting and in accordance with section 29 (2) of the Trustee
Savings Bank Act 1948.

MARSHALL AND HEAPHY,
Chartered Accountants.

12 May 1981.