5 AUGUST
THE NEW ZEALAND GAZETTE
2623

Current liabilities—
Sundry creditors .. .. .. 123,473
Provision for donations .. .. 35,000
Provision for taxation (note 6) .. 77,448
Mortgages secured .. .. .. 11,900
Total current liabilities— .. .. 247,821

Other liabilities—
Mortgages (secured) .. .. .. 110,425
Provision for deferred taxation (note 7) .. .. .. 322,928
Total other liabilities— .. .. 433,353

Reserve fund—
Balance 31 March 1981 .. .. 634,756
Add balance appropriation account .. 336,273
Balance 31 March 1982 .. .. 971,029
Property revaluation .. .. 327,847
Total reserve fund— .. .. 1,298,876

Current assets—
Cash on hand and at bank .. .. 556,234
Fixed deposit & short term investment .. .. 2,148,000
Interest accrued on investments .. 672,075
Sundry debtors and pre-payments .. 247,205
Stationery on hand .. .. 71,028
Total current assets— .. .. 3,694,542

Investments—
Government stock (note 2) .. .. 18,349,186
Local authorities .. .. 22,000
Mortgages .. .. 28,359,564
Personal loans .. .. 2,593,433
Shares NTC bank (note 8) .. .. 169,203
Depositors overdrafts .. .. 384,723
Debentures (note 8) .. .. 33,000
Total investments— .. .. 49,941,109

Fixed assets—(at cost or valuation)
Land .. .. .. 693,850
Bldg. & improvements .. .. 101,220
Furniture & fittings .. .. 155,276
Less Depr. to date .. .. 84,144
Vehicles .. .. 46,366
Less Depr. to date .. .. 15,131
Office equipment .. .. 367,710
Less Depr. to date .. .. 173,553
Total fixed assets— .. .. 1,126,669

$54,762,320

To be read in conjunction with the Notes to the Accounts, which form part of the Financial Statements.

P. M. HANKINS (Deputy President)
G. I. C. McDOUALL (General Manager)

WANGANUI SAVINGS BANK
REVENUE ACCOUNT FOR YEAR ENDED 31 MARCH 1982

Income:
Investment Income
New Zealand government stock 1,804,279
Local authority .. .. 46,153
Mortgages .. .. 3,763,484
Personal loans .. .. 392,524
Fixed and call deposits .. 389,652
Total investment income— .. 6,396,092

Other Income—
Sundry income .. .. 294,164
Total Income— .. .. 6,690,256

Less expenditure—
Interest on depositors accounts
Savings paid and credited .. 934,981
Investment—paid and accrued 2,759,692
Total interest— .. .. 3,694,673

Other expenses—
Audit fees .. .. 11,381
Depreciation .. .. 97,716
Management & staff expenses 1,295,549
General operating expenses 665,160
Office equipment expenses 57,165
Promotional expenses .. 110,031
Property expenses .. 54,053
Trustees fees .. .. 20,123
Total other Expenses— .. 2,311,178

Total Expenditure— .. .. 6,005,851

Net profit before taxation .. 684,405
Income taxation (note 6) .. 303,943
Net Profit after Taxation— .. 380,462

APPROPRIATION ACCOUNT
Net profit from revenue account .. 380,462
Provision for donations .. (35,000)
1980/81 taxation underprovided .. (9,148)
Deferred tax adjustment .. (233)
Share of profit/(loss) associate company (note 8) .. (41)
Balance to Reserve Fund— .. $336,273

$254,950

WANGANUI SAVINGS BANK
NOTES TO THE ACCOUNTS

1. Statement of Accounting Policies—The general accounting principles as recommended by the New Zealand Society of Accountants for the measurement and reporting of profits on an historical basis have been followed. Particular accounting policies used which significantly effect the measurement of the Bank’s profit and its financial position are set out below:

2. Government Stock—
   (a) Government Stock is recorded at face value, adjusted by any premium paid or discount received, which is amortised or credited to Revenue over the term of the investment.
   (b) Values of Government Stock:

1982 1981
$ $
Face value 18,581,660 15,922,870
Less: Unexpired discounts 354,851 2,941
Add: Premiums paid not yet written off 122,377 155,752
Book value 18,349,186 16,075,681
Market value 16,480,761 13,431,155

3. Other Investments—All investments, other than Government Stock are shown at cost price, and all are expected to realise the reported amounts at maturity.

4. Interest—
   (a) Interest on Investments—Interest on Investments and Mortgages is brought into revenue during the period in which it is earned, rather than the period during which it is received.
   (b) Personal Loans—The policy is to add interest to the full advance at the commencement of the loan, and this amount is brought into revenue during the appropriate financial year by applying the “Rule of 78”.
   (c) Investment Accounts—Interest accrued on depositors’ investment accounts has been calculated at the full rate payable on the assumption that all deposits go through to maturity.

5. Depreciation—
   (a) Depreciation is calculated on a straight line basis. The principal write off periods in use for fixed assets are:
   Buildings .. .. 10 to 50 years
   Office equipment .. 10 years
   Furniture .. .. 10 years
   Vehicles .. .. 5 years
   (b) Land and buildings were revalued in 1982 by $193,913 and depreciation is written off the buildings on the basis of that valuation. All other fixed assets are included at cost.

6. Taxation—Taxation charged against net profit recognises the effect of both current and deferred taxation as follows:

1982 1981
Tax expense in Profit and Loss Account .. 303,943 186,136
Less: Deferred Tax for year .. .. 58,260 130,156
Less: Provision Tax paid .. .. 168,235 —
Taxation Payable per Balance Sheet .. $77,448 $55,980

7. Deferred Taxation—

1982 1981
$ $
Balance brought forward .. .. 264,668 187,408
Plus: 1982 Deferred Tax .. .. 58,260 130,156
Less: Prior year adjustments made for items no longer required .. — (52,896)
Balance 31 March 1982 .. .. $322,928 $264,668