2444 THE NEW ZEALAND GAZETTE No. 109

APPROPRIATION ACCOUNT FOR YEAR ENDED 31 MARCH 1983

1983 1982
$ $
Net profit for year 6,142,071 6,674,833
Overprovision for
donations 9,132 8,676
6,151,203 6,683,509
Less: Provision for
donations 650,000 650,000
Balance transferred
to reserve fund $5,501,303 $6,033,509

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 1983

1. Statement of Accounting Policies

The general accounting principles 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 affect the measurement of the Bank's profit and its financial position, are set out below:

(a) Recognition of Income—Interest on investments is recognised as income for the period in which it is earned, rather than the period in which it is received. Interest charged on personal loans is apportioned over the term of the loan, using the "Rule of 78" method.

(b) Depreciation—Fixed assets are being depreciated on a straight line basis at rates which will write off the cost over their estimated useful lives to estimated residual values. The principal write-off periods are:

Buildings . . . . . . . . 40–100 years
Computer and Office Calculating
Equipment . . . . . . . . 5–10 years
Furniture and Fittings . . . . 10–15 years
Other Fixed Assets . . . . . . 3–15 years

(c) Taxation—Taxation charged against net profit is the estimated expense relating to the result of the year. It includes an amount for taxation, the payment of which is deferred to future periods, because taxation practice differs from accounting policies in the treatment of:

(i) Interest accrued on investments.
(ii) Depreciation charges.
(iii) Interest accrued included in the purchase price of New Zealand Government Securities.

(d) Investments—New Zealand Government and Local authorities securities are stated at cost, excluding interest accrued at date of purchase. Such securities are normally held to maturity, and their value on redemption approximates cost.

2a. Fixed Assets

1983 1982
$ $
Land 4,549,102 4,422,992
Buildings 12,888,404 9,755,040
Accumulated depreciation (1,571,632) (1,455,278)
$11,316,772 $8,299,762

Computer, other assets 21,151,625 17,551,226
Accumulated depreciation (8,308,587) (8,367,491)
12,843,038 9,183,735
$28,708,912 $21,906,489

(b) The above cost of land and buildings includes $3,784,494 (1982, $1,298,692) in respect of the bank's share of a property under development. This property is recorded at the purchase and development costs to date, including capitalised interest.

(c) Excluding (b) the bank's land and buildings stated at net book value are $12,081,380 (1982, $11,424,062). The latest Government valuation received in respect of properties totalled $21,732,800 (1982, $20,420,600).

3. Supplemented Mortgages

During the year supplemented mortgages were advanced in conjunction with the Housing Corporation of New Zealand. The amount invested is included in investment mortgages, and the amount contributed by the Housing Corporation of New Zealand is recorded as a liability.

4. Commitments

1983 1982
$ $
Capital expenditure
commitments— 4,452,000 10,130,000
Lending commitments
approved but not
advanced— 14,778,000 19,013,000

5. Reserve Fund

1983 1982
$ $
Balance 1 April 41,741,510 35,708,001
Add: Net profit after
provision for tax and
donations 5,501,203 6,033,509
Balance 31 March $47,242,713 $41,741,510

AUDITOR'S REPORT TO THE AUCKLAND SAVINGS BANK

We have audited the books and accounts of the Auckland Savings Bank for the year ended 31 March 1983, in accordance with generally accepted auditing standards, and have carried out such procedures as we considered necessary. In our opinion, the balance sheet, profit and loss account, and appropriation account, together with the notes thereon, are properly drawn up so as to give under the historical cost convention, a true and fair view of the financial position of the Auckland Savings Bank as at 31 March 1983 and the financial result of its transactions for the year ended on that date, in accordance with section 29 (2) of the Trustee Savings Banks Act 1948.

McCULLOCH MENZIES, Chartered Accountants.

2592

SOUTH CANTERBURY SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1983

Liabilities— 1983 1982
$ $
Depositors' balances—
3 percent Accounts 16,297,944 17,677,271
HTT accounts 4,136,895 . .
Current accounts 2,275,005 1,807,210
Term deposits—
30 days to 3 months 912,946 867,546
3 months to 6 months 1,067,708 808,124
1,980,654
Investment accounts—
6 months 3,923,857 2,649,784
1 year 13,126,392 11,884,708
2 years 1,605,643 1,508,531
3 years 10,406,468 10,208,995
29,062,360 26,252,018
Housing bonds . . 800
53,752,858 47,412,969
Other liabilities—
Interest accrued on
investment accounts 815,984 688,812
Sundry creditors 121,027 129,052
Provision for taxation
(note 5) 135,997 179,719
Prepaid 170,733 117,618
34,736 62,101
Provision for grants 35,000 35,000
Premium due on
redemption of
Government stock 15,600 16,050
Discount due on maturity
of Government stock 350,906 . .
Reserve fund—
Balance at 31 March 1982 1,038,193 844,067
Capital profit from sale of
vehicle . . 225
Add balance of profit and
loss appropriation
account, 31 March 1983 145,411 193,901
1,183,604 1,038,193
$56,274,979 $49,382,177
Assets— 1983 1982
$ $
Current assets—
Cash resources 1,546,425 2,976,108
Fixed deposits 4,741,000 241,000
Interest accrued on bank
investments 489,310 569,756
Branch items in transit 606 . .
Taxation refund due (note
5) 34,736 . .
6,812,077 3,786,864