2372
THE NEW ZEALAND GAZETTE
No. 79

RESERVE BANK OF NEW ZEALAND

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1982

1982 1981
($000's) ($000's)

General charges including salaries, rent, cost
of note issues, overseas debt charges and
other expenses .. .. 146,542 108,896
Balance of profit for year .. 38,704 12,932
$185,246 $121,828

Payment to New Zealand Government in
terms of section 40 of Reserve Bank of
New Zealand Act 1964 .. .. 8,232 11,165
Transfer to insurance reserve .. 2,000
Transfer to general reserve .. 5,500 4,700
Balance at end of year .. .. 31,204 8,232
$46,936 $24,097

Notes in circulation .. .. 608,991 558,244
Demand Deposits—
(a) State .. .. 401,041 314,558
(b) Banks .. .. 18 12
(c) Marketing accounts .. 44,416 38,182
(d) Other .. .. 137,756 240,659
583,231

Liabilities in currencies other
than New Zealand
currency .. .. 1,192,834 451,737
Allocation of special drawing
rights by I.M.F. .. .. 205,022 189,599
Other liabilities .. .. 190,287 58,841
Reserves—
(a) General reserve .. 46,440 40,940
(b) Other reserves .. 28,088 26,088
74,528 67,028
Profit and loss appropriation
account .. .. 31,204 8,232
$2,886,197 $1,927,092

1982 1981
($000's) ($000's)

Balance of profit after making provision for
sundry liabilities and contingencies .. 185,246 121,828
$185,246 $121,828

PROFIT AND LOSS APPROPRIATION ACCOUNT

Balance at beginning of year .. 8,232 11,165
Balance from profit and loss account .. 38,704 12,932
$46,936 $24,097

BALANCE SHEET AS AT 31 MARCH 1982

Gold (see note 1 (e)) .. .. 699 699
Overseas Assets—
(a) Current accounts and
short term bills .. .. 75,517 104,323
(b) Investments .. .. 11,796 9,954
(c) Holdings of special
drawing rights at the
I.M.F. .. .. 27,311
114,624 155,961

New Zealand coin .. .. 12,843 14,089
Discounts .. .. 4,890 16,570
Advances—
(a) To the State .. .. 1,006 1,568
(b) To marketing accounts .. 779,910 662,469
(c) Export credits .. .. 54,448 38,937
(d) Other .. .. 629,831 516,873
1,465,195

Investments in New Zealand—
(a) N.Z. Government
securities .. .. 892,331 302,481
(b) Other .. .. 10,389 37
902,720 302,518

Other assets .. .. .. 385,226 216,408
$2,886,197 $1,927,092

1. Statement of Accounting Policies—The particular accounting policies adopted by the Bank which significantly affect the measurement
   and the reporting of its results and financial position on an historical cost basis, modified by the revaluation of land, have been consistently
   applied during the year. They are as follows:

(a) Foreign Currency Conversions—Overseas assets and liabilities at balance date are converted to New Zealand currency using appropriate
telegraphic transfer rates ruling at that date.

(b) Investments—Overseas assets are shown in the balance sheet at cost. A market value is not available for the majority of investments
held; the maturity value is $NZ12.1 million, 1981 $NZ10.2 million. New Zealand investments are shown at the lower of cost or
market value (market value $911.0 million, 1981 $309.6 million).

(c) Exchange Rate Fluctuations—The profit or loss arising from appreciation or depreciation of the Bank’s net overseas assets (including
contracts for the future purchase and sale of overseas currency) due to movements in basic exchange rates is settled with Treasury
in terms of section 26 of the Reserve Bank of New Zealand Act 1964. The loss in respect of the year ended 31 March 1982 subject
to such settlement was $252.8 million, 1981 $9.5 million.

(d) Fixed Assets and Depreciation—Land held at Christchurch and Wellington is valued in the Bank’s books at the July 1979 Government
valuation. The Bank’s buildings at Wellington and Christchurch, along with other fixed assets, are written off over their estimated
economic lives on a straight line basis as follows:

Buildings .. .. .. 1 percent per annum
Other Fixed Assets .. .. 20 percent per annum

At balance date the building occupied by the Bank in Auckland has been fully written off.

(e) Gold—Gold is valued in the accounts at cost (market value $9.5 million, 1981 $12.5 million).

2. Contingent Liabilities—

(a) In respect of an investment of 250,000 one pound sterling shares in the Commonwealth Development Finance Co. Ltd. of which
50p per share is uncalled (New Zealand equivalent $290,000, 1981 $307,000).

(b) In respect of Exchange Contracts entered into for the future purchase and sale of overseas currency, if this is less than $500,000. (The
risk of these contracts is covered by the indemnity described in Note 1 (c). In terms of that indemnity the Bank receives compen-
sation only if its net losses for the year exceed $500,000.)