12 AUGUST
THE NEW ZEALAND GAZETTE
2677

Use of funds—
Investments—
Government stock .. 5,914,698
Local authority stock 300,000
Mortgage and personal
loans .. 23,857,286

Repayment of mortgage
principal .. 82,440
Fixed asset purchases net
of disposal proceeds.. 81,305
Increase in cash resources .. 2,576,178

$30,154,424 $18,874,371

NOTES TO THE ACCOUNTS

1. Statement of accounting policies—The general accounting
   principles recommended by the New Zealand Society of Ac-
   countants for the measurement and reporting of profit and financial
   position on an historical cost method have been adopted in the
   preparation of these financial statements.

The following particular accounting policies which materially
affect the measurement of profit and the financial position have
been consistently applied.

(a) Government stock—Discounts and premiums on certain
Government stocks are amortised from the date of purchase so
that stocks will attain their redemption values by maturity date.
The current year's discount and premium amortisation is reflected
in the profit statement.

(b) Personal loans—The Bank's policy is to add interest to the
advance at the commencement of the loan. The ‘rule of 78’ method
of accounting for income is used to apportion the income between
accounting periods. The effect of this method is that income
earned over the term of the loan represents a level rate of return
on the declining loan balance outstanding. The personal loan
investment is net of unearned interest.

(c) Depreciation—Fixed assets are depreciated on the straight-
line method at rates which will write off the cost over their estimated
useful lives. The principal rates are:

Buildings .. 3 percent to 5 percent
Furniture and fittings .. 10 percent to 20 percent
Computer equipment .. 20 percent to 25 percent

(d) Taxation—The charge for income tax is the amount of the
tax liability in respect of the accounting profit for the year and
includes both current and deferred tax.

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 accrued
interest income, discounts earned and premiums paid on Govern-
ment stock and depreciation.

2. Investments—Government stocks are recorded at cost ad-
   justed by the discount or premium amortised to date. Stocks are
   generally held until maturity date and therefore, differences in the
   following bases of valuation have little financial effect on the
   Bank. Statutory ratio requirements are based on the nominal value
   of stocks. Local authority stocks are recorded at cost.

New Zealand Government stock—

1982
$
Cost price plus amortisation .. 31,401,553
Nominal value .. 31,558,843
Market value .. 28,578,682

1981
$
25,474,542
25,619,890
22,388,467

Local authority stock—

Cost .. 389,197
Nominal value .. 389,197
Market value .. 338,810

1982

Cost
Accum.
Depn.
$
Book
Value
$

1981

Cost
Accum.
Depn.
$
Book
Value
$

Land .. 78,771 13,028 67,947 128,129 86,756 41,373
Buildings 85,851 13,028 72,823 174,695 69,545 184,896

164,622 13,028 151,594 429,136 69,545 359,591

Improvements to
leasehold
premises 180,898 112,951 67,947 128,129 86,756 41,373
Furniture, fittings,
and equipment 598,221 344,442 253,779 504,075 270,727 233,348

$943,741 $470,421 $473,320 $1,061,340 $427,028 $634,312

The current Government valuation of land and buildings is
$165,000.

4. Current taxation payable—

1982
$
Taxation of profit 566,549
Taxation on extraordinary item (note 7) 8,719

575,268
Less: Timing differences transferred to
deferred taxation .. 222,545

$352,723

1981
$
237,029
..
237,029
237,029
Nil

5. Deferred taxation payable –

1982
$
Deferred taxation last year 486,373
Add: Timing differences transferred
(note 4) 222,545
Deferred taxation this year .. $708,918

1981
$
249,344
237,029
$486,373

6. Term investment accounts—

Repayable within—
1 year .. 37,045,835 25,904,840
1–2 years .. 3,999,847 7,682,937
2–3 years .. 1,451,613 602,977

$42,497,295 $34,190,754

Rates of interest payable range from 10 percent to 14.5 percent
per annum.

7. Extraordinary item—

1982
$
Realised reserves upon sale of Willis
Street property
Capital .. 59,774
Less: taxation payable 8,719

$178,566

1981
$
Nil

8. Financing commitments—

1982
$
Mortgages approved but not uplifted 858,700
Capital commitments in respect of
data processing developments .. 665,500

1981
$
2,487,000
..

GENERAL PUBLICATIONS

NETBALL. Revised—A Guide Book for Teachers, Coaches
and Players

DEPARTMENT OF EDUCATION

58 p. 1978
$2 plus 55c p & p

Netball is a spectacular exciting game which is played and
enjoyed in many countries both by the very young and the
more experienced and mature international players.

To obtain the utmost enjoyment it is essential that each
player becomes skilful in the techniques and tactics of the
game and to know and understand the rules.

While the publication is specially designed to assist teachers,
coaches and players in schools, people interested in netball
at all levels should find the material contained in this booklet
of great assistance.

ELECTORAL ROLLS

Government Bookshops no longer handle the sale of Electoral
Rolls. Inquiries should be directed to the Director-General,
Post Office, Electoral Roll Control Centre, P.O.H.Q., Wellin-
ton.