2622 THE NEW ZEALAND GAZETTE No. 90

SOUTH CANTERBURY SAVINGS BANK

NOTES FORMING PART OF THE ANNUAL ACCOUNTS FOR YEAR ENDED 31 MARCH 1982

Statement of Accounting Policies

The general accounting principles as recommended by the New Zealand Society of Accountants for the measurement and reporting of profit on an historical cost basis have been followed by the Bank. Depreciation is not calculated on the straight line basis and a separate note regarding this item is set out in paragraph 2 (a) below.

The following particular accounting policies which materially affect the measurement and reporting of profit and the Bank's financial position have with the exception noted in 1 (b) been consistently applied—

1. Revenue Recognition—
   (a) Interest received from investments includes interest accrued to 31 March 1982.

(b) Personal loans have been adjusted for interest yet to mature as shown in the balance sheet. The Bank's policy is to add interest to the advance at the commencement of the loan. This amount is brought into revenue during the appropriate financial years by applying the "Rule of 78". During the year just ended the personal loan records have been computerised and on the conversion some minor changes in accounting policies have been necessary in respect of the apportionment of interest between account periods. This has resulted in the deferment of interest amounting to $6,951 from the current year to be brought into revenue over the remaining term of these particular loans. It is not considered that this amount would materially affect the results for the year.

(c) Interest paid and accrued on depositors' investment accounts has been calculated at the full rate payable on the assumption that all deposits will reach maturity.

2. Fixed Assets and Depreciation—
   (a) The Fixed Assets, other than the computer equipment, have been depreciated at ordinary depreciation rates as approved by the Inland Revenue Department. Computer equipment has been depreciated at the first year rate of 25 percent of cost price and thereafter at 20 percent of the diminishing value each year. All assets still in use are included in the books and it is calculated that the depreciation rates being used will write off the items over the period of their useful lives. In accordance with the Bank's established policy no additional depreciation as provided for in the rates set by the Inland Revenue Department on the purchase of assets (other than the computer equipment) have been claimed for taxation purposes.

(b)

(c) Investments—
(c) The New Zealand Government Stock and Local Authority Securities are shown at face value and are generally held to maturity. The premium redemption due on maturity of Government Stock purchased under par is shown as a reserve to be brought into income either upon maturity or sale of the stock concerned. Similarly the premium paid during the year on the purchase of Government stock which is shown in the Balance Sheet will be written off as a loss on maturity or earlier sale of the particular stock.

4. Mortgages—Mortgage applications approved but for which the funds have not been uplifted at 31 March 1982 amount to $853,400.

5. Property—The Bank owns property in Timaru, Temuka, Fairlie, Waimate, Ashburton, Methven and Geraldine. It leases property in Ashburton, Geraldine, Tinwald, Pleasant Point, Methven and Timaru. The leases have been negotiated to provide long-term tenancy options.

6. Charges and Administration Expenses—
   Included in the above are:

7. Taxation—The amount provided for income tax is the amount of the calculated tax liability in respect of the accounting profit shown for the year by the Profit and Loss Account.

After the approval and payment of annual grants the Bank makes application for a rebate of taxation on qualifying donations. In this accounting period a rebate of $9,244 was received and credited to Revenue Reserve.

STATEMENT OF CHANGES IN FINANCIAL POSITION
YEAR ENDED 31 MARCH 1982

These funds were applied to—

WANGANUI SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1982