11 NOVEMBER
THE NEW ZEALAND GAZETTE
3753

Investments—
(At cost unless otherwise stated)
New Zealand Government Stock
(Note 2) .. 42,738,213
Local authority securities .. 968,044
Mortgages and term loans .. 66,825,508
Personal loans (Note 3) .. 3,249,434
Other investments .. 2,752,416
Associate company (Note B) .. 202,193

Fixed Assets (Note C)
Land .. 68,982
Buildings .. 417,668
Furniture, fittings, vehicles, office equipment, etc. .. 486,650

PROFIT STATEMENT FOR THE YEAR ENDED 31 MARCH 1982

Income Interest—
$ 1982
$ 1981
N.Z. Government securities .. 3,805,509
2,957,106
Local authority securities .. 79,955
70,534
Mortgages and term loans .. 7,841,168
5,674,062
Personal loans .. 305,935
309,997
Bank and other deposits .. 806,865
814,351
Other investments .. 378,487
72,745

Total income .. 13,417,939
9,898,795

Rents, commissions, fees, etc. .. 678,957
490,446

Net loss on disposal of investment securities .. 121,776
71,355

Operating profit .. 1,188,531
818,436
Less taxation (Note 4 (a)) .. 514,566
362,081

Net profit for year .. 673,965
456,355

Add share of profit associate company (Note B) .. (51)
21,982

Net profit for year including results of associate company .. 673,914
478,337

Less provision for donations .. 70,000
50,000

Transfer to reserve fund .. 603,914
428,337

Retained earnings brought forward .. 1,823,335
1,394,998

Reserve fund as at 31 March 1982 .. $2,427,249
$1,823,335

“The notes to the accounts form part of, and are to be read in conjunction with, these accounts.”

T. K. CULLEY, President.
P. D. MUNN, General Manager.

STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 1982

Funds were Received from Operations—
$ 1982
$ 1981
Net profit after tax .. 673,914
478,337
Adjustment for items not involving movement of funds:
Depreciation .. 137,992
116,396

Investment repayments—
N.Z. Government securities .. 2,806,010
3,059,495
Local authority securities .. 476,166
838,276
Mortgages .. 14,572,079
9,273,781
Personal loans .. 2,626,033
1,498,230

Decreased investment associate company .. 51
Increase in term liabilities .. 200,000
Decrease in working capital .. 1,714,454

Increase in depositors’ funds .. 20,343,598
14,448,338

These funds were applied to additional investments—
N.Z. Government securities .. 10,279,397
5,256,878
Local authority securities .. 585,000
283,650
Mortgages .. 26,819,048
20,663,268
Personal loans .. 3,518,190
2,184,100
Other lending net .. 2,001,916
750,501

43,203,551
29,138,397

Increased investment associate company .. 13,982
Reduction in term liabilities .. 8,000
Increase in working capital .. 435,836
Donations .. 70,000
Net capital expenditure .. 268,746

$43,550,297
$29,712,853

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:—

Note 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.

Note 2—Government Stock—It has been the Bank’s policy to amortise total 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 amortised discount or premium to date. From the 1st April 1980 there has been an additional adjustment to recognise the accrued interest content as revenue in the purchase or disposal of stocks.

Note 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”.

Note 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 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.

B. Associate Company—The Bank’s investment in Northern Trustee Computerbank Limited has been shown in the accounts according to the standard accounting practice adopted by the New Zealand Society of Accountants for an Associate Company.

The investment is made up as follows:
$
Debentures .. 33,000
Paid up shares .. 80,000
Share of accumulated profit, less dividends received, to year ended 31 March 1981 .. 89,244

Plus share of profit for the year ended 31 May 1981 .. 12,571
Less share of provision for taxation .. 12,622

Investment as per Balance Sheet .. $202,193

C. Fixed Assets—

1982
Cost $
Accum. Depn. $
Book Value $
Land .. 68,982
—
68,982
Buildings .. 454,834
37,166
417,668
Furniture, fittings and alterations .. 661,622
374,264
287,358
Leased Premises .. 516,410
258,378
258,032
Office and Computer equipment .. 57,376
16,050
41,326

$1,759,224
$685,858
$1,073,366

1981
Cost $
Accum. Depn. $
Book Value $
Land .. 59,995
—
59,995
Buildings .. 433,463
35,129
398,334

493,458
35,129
458,329