28 JULY THE NEW ZEALAND GAZETTE 2447

Other expenses—
Audit fees 14,000 11,381
Depreciation 119,130 97,716
Management and staff
expenses 1,482,419 1,295,549
General operating
expenses 859,688 665,160
Office equipment
expenses 70,911 57,165
Promotional expenses 164,821 110,031
Property expenses 67,167 54,053
Trustees fees 21,593 20,123
Total other expenses 2,799,729 2,311,778
Total expenditure 7,557,865 6,005,851
Net profit before
taxation 805,213 684,405
Taxation expense
(note 7) 355,690 303,943
Net profit after taxation $449,523 $380,462

APPROPRIATION ACCOUNT

Net profit from revenue account $449,523 $380,462
Provision for donations (40,000) (35,000)
Prior years tax overprovided 450 (9,148)
Share of profit/(loss) associate company
(note 9). 263 (41)
Balance to reserve fund: $410,236 $336,273

To be read in conjunction with the notes to the accounts, which
form part of the financial statements.

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:

1983 1982
$ $
Face value 21,059,660 18,581,660
Less: Unexpired discounts 688,457 354,851
Add: Premiums paid not yet written
off 122,377
Book value 20,371,203 18,349,186
Market value 18,286,571 16,480,761

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 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) Accrued Interest on Investment Accounts—Interest accrued
   on depositor's investment accounts has been calculated at
   the full rate payable on the assumption that all deposits
   go through to maturity.

5. Fixed Assets—
   Land and buildings are shown at a registered valuers current
   valuation less accumulated depreciation. All other assets
   are shown at cost less accumulated depreciation.

6. 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

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

1983 1982
$ $
Tax expense in profit and loss account 355,690 303,943
Less: Deferred tax for year 28,672 58,260
Less: Provisional tax paid 245,232 168,235
Provision for taxation as per balance sheet $81,786 $77,448

8. Deferred Taxation—

1983 1982
$ $
Balance brought forward 322,928 264,668
Plus: Deferred tax for year 28,672 58,260
Balance end of year $351,600 $322,928

9. Northern Trustee Computerbank Ltd—
   The investment has been shown using the equity accounting basis

1983 1982
$ $
Debentures 33,000 33,000
Shares (par value) 80,000 80,000
Contributed to share premium reserve 89,244 89,244
Accumulated profits to year ended 31/3/82 (Less
deferred taxation) (41) ..
Share of profit for year ended
31/3/83 1,780
Less provision for taxation 1,517
263 (41)
$202,466 $202,203

10. Stock—
    This represents bulk stationery supplies which have been valued
    at cost.

11. Commitments—
    Mortgages approved but not yet paid out totalled $70,650 at 31
    March 1983. ($595,010 31 March 1982).

FUNDS STATEMENT
STATEMENT OF CHANGES IN FINANCIAL POSITION FOR YEAR
ENDED 31 MARCH 1983

1983
$

Funds were provided—
From Operations:
Net profit before tax 805,213
Share of net profit associate company 263
Plus adjustments not involving movement of funds:
Depreciation 119,130
924,606

From other sources—
Increase in depositors funds
Savings accounts 3,048,699
Personal cheque accounts 268,126
Investment accounts 2,232,896
Housing bond accounts 5,017,440
$11,491,767

Funds were applied to—
Increase in investments
Short-term deposits 2,900,000
Government stock 2,022,017
Local authority stock 164,000
Personal loans to depositors 1,022,506
Mortgage advances to depositors 3,910,068
NTC Investment 263
Repayment of mortgage borrowing 11,900
Net increase in fixed assets 314,571
Payment of taxes 322,230
Donations 35,000
Net increase in working capital 789,212
$11,491,767

Increase/(decrease) in working capital
Cash and Bank 761,322
Receivables 136,974
Stock 37,310
Payables (166,394)
$789,212

AUDITORS' REPORT
We have audited the books and accounts of the Wanganui 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.