2620
THE NEW ZEALAND GAZETTE
No. 90

Fixed Assets—
Land
.. .. ..
299,555
275,194
Buildings
.. .. ..
3,253,403
3,031,793
Vehicles, office equipment and
furniture
.. .. ..
2,166,846
1,652,444
5,719,804
4,959,431
Less depreciation to date
.. .. ..
981,404
745,131
Total Fixed Assets
.. .. ..
4,738,400
4,214,300
$117,968,011
$94,307,980

N. H. STANLEY, President.
B. J. RUDD General Manager.

TARANAKI SAVINGS BANK
PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1982

Interest to depositors—
On open accounts
.. .. ..
1,473,015
1,084,638
Closed accounts and matured term investment accounts
4,753,245
2,790,506
Accrued on term investment accounts
.. .. ..
1,393,384
1,102,958
7,619,644
4,978,102
Administrative expenses
.. .. ..
3,409,876
2,640,223
Trustees honoraria
.. .. ..
20,440
19,445
Depreciation
.. .. ..
252,811
178,471
Loss on sale of securities—NOTE 1
.. .. ..
420,392
—
Provision for taxation
.. .. ..
467,622
374,690
Net profit
.. .. ..
703,360
450,647
$12,894,175
$8,641,578

Interest on Investments—
N.Z. Government stock
.. .. ..
3,421,755
2,422,719
Local authority stock
.. .. ..
85,762
66,903
Mortgages
.. .. ..
6,885,491
4,173,213
Personal loans
.. .. ..
293,375
181,152
Other sources
.. .. ..
1,554,854
1,355,799
12,251,237
8,199,786
Income from other sources
.. .. ..
519,372
392,944
Share of profit of associate company
.. .. ..
13,763
48,848
Profit on sale of property
.. .. ..
109,803
—
$12,894,175
$8,641,578

APPROPRIATION ACCOUNT FOR YEAR ENDED 31 MARCH 1982

Provision for donations
.. .. ..
75,000
60,000
Reserve account
.. .. ..
629,880
390,986
$704,880
$450,986

Net profit
.. .. ..
703,360
450,647
Donation provision balance transferred
.. .. ..
1,520
339
$704,880
$450,986

NOTES TO THE ACCOUNTS

Statement of Accounting Policies: The general accounting
principles as recommended by the New Zealand Society of Account-
ants for the measurement and reporting of results and financial
position on an historical cost basis have been followed in the
preparation of these financial statements.

The following particular accounting policies which significantly
affect the measurement of the Bank’s profit and financial position
have been applied on a basis consistent with the previous years.

Depreciation: Depreciable fixed assets are depreciated on a
straight line basis at rates estimated to write off the cost, less
residual value, over the useful life of each class of asset. The
principal rates in use are:-
Buildings 1% and 24%
Office Equipment, fixtures and fittings 10% and 20%
Computer Equipment 12½%

NOTE 1—Loss on Sale of Securities: Low coupon Government
Stock has been sold during the year to allow the Bank to purchase
higher yielding Government Securities.

NOTE 2—Investment Accounts and Term Deposits:

Under and including:
1-year
.. .. ..
30,858,792
26,227,200
1-2 year
.. .. ..
13,997,135
5,309,928
2-3 years
.. .. ..
5,448,303
7,063,308
3-5 years
.. .. ..
1,670,000
1,483,280
$51,974,230
$40,083,716

NOTE 3—Taxation: The charge for income tax is the amount of
tax liability in respect of the accounting profit for the year.

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 depreciation
and accrued income.

Current
1982
$
1981
$
Balance
.. .. ..
3,044
(174,396)
Total tax provided in accounts
.. .. ..
467,622
374,690
Less share of associate company
.. .. ..
12,622
33,690
458,044
166,604
Less timing differences transferred
to deferred tax
.. .. ..
157,455
199,467
300,589
(32,863)
Less tax paid
.. .. ..
167,838 Refund
35,907
Tax payable
.. .. ..
$132,751
$3,044

Deferred
Provision for Deferred Tax
.. .. ..
764,500
565,033
Plus movement
.. .. ..
157,455
199,467
Total Deferred Tax
.. .. ..
$921,955
$764,500

NOTE 4—Fixed Deposits: Coupon maturity dates cover the period
19 May, 1982 to 3 January 1983. As these investments can be
realised as liquidity conditions dictate they have been treated as
Current Assets.

NOTE 5—New Zealand Government Stock: New Zealand Govern-
ment Stock is recorded at par value less discount which is amortised
over the term of the investment on a straight line basis. The cost
price as at 31st March was as follows:-

1982
$
1981
$
New Zealand Government Stock
.. .. ..
40,067,765
32,130,679

New Zealand Government Stock is held pursuant to the ratio
requirements of the Trustee Savings Bank Act 1948 and subsequent
Amendments and under normal circumstances is held to the
coupon maturity date. As at 31st March, 1982, the estimated
market value of the N.Z. Government Stock portfolio was
$36,050,195.27.

NOTE 6—Personal Loans: Interest on loans is added to the princi-
pal sum at the date of the advance. The interest revenue is recog-
nised on the basis of the ‘Rule of 78’ method. Unearned interest
as at 31st March was $494,153 (1981, $173,504).

NOTE 7—Northern Trustee Computerbank Ltd.: The Ordinary
Share investment has been shown using the equity accounting
basis:-

1982
$
1981
$
100,000 ordinary shares..
.. .. ..
80,000
80,000
Accumulated Profits to previous year
.. .. ..
89,244
74,086
Share of Profit current year
.. .. ..
(51)
15,158
Share premium reserve
.. .. ..
1,192
—
170,385
169,244
Debentures (at cost)
.. .. ..
33,000
33,000
$203,385
$202,244

NOTE 8—Valuation of Assets: Fixed assets are recorded at cost:

Cost
$
Accumulated
Depreciation
$
Book Value
1982
$
1981
$
Land
.. .. ..
299,555
—
299,555
275,194
Buildings
.. .. ..
3,253,403
194,108
3,059,294
2,860,381
Plant, Furniture
& Fittings
.. .. ..
2,166,846
787,296
1,379,551
1,078,725
Total, 1982
.. .. ..
5,719,804
981,404
4,738,400
4,214,300
Total, 1981
.. .. ..
4,958,431
745,131
4,214,300