15 SEPTEMBER
THE NEW ZEALAND GAZETTE
3117

Investments (see note 2)
1983 $
1982 $
N.Z. Government stock
and local authority
stock
49,913,812
46,097,845
Mortgages
64,491,378
63,192,666
Term loans
4,099,662
1,459,692
Overdraft advances and
trusteebank visa
2,138,477
1,857,226
Personal loans (net of
unearned interest)
6,463,413
7,420,658
127,106,742
120,028,087

Fixed assets (see note 3)
At cost or valuation
4,742,726
3,588,964
Less: Accumulated
depreciation
1,112,597
849,984
Total assets
$148,542,017
$133,498,819

Less: liabilities—
Depositors’ funds—
Savings accounts
$9,563,558
$141,248,407
Cheque accounts
8,167,673
60,998,013
Term investments
73,517,176
127,617,335
Depositors’ balances
141,248,407
2,466,650
Add: Accrued interest
3,099,363

Less: Items in transit
144,347,770
130,083,985
Net liability to depositors
2,380,463
2,187,665

Current liabilities—
Provision for donations
70,000
29,000
Provision for current taxation
460,119
347,254
Less: Provisional tax paid
593,331
591,804
41,333
(43,513)

Term liabilities—
Mortgages
597,333
342,000
Provision for deferred taxation
574,143
634,122
Housing Corporation of N.Z.
381,558
120,459
1,553,034
1,096,581

Total liabilities
143,919,919
129,676,446
Excess of assets over liabilities
4,622,098
3,882,373

Represented by—
Retained earnings 1 April 1982
3,552,516
2,534,080
Add: Transferred from profit
statement
658,406
1,018,436
General Reserve 31 March 1983
4,210,922
3,552,516
Property revaluation reserve 1
April 1982
305,755
143,687
Add: Net revaluation for year
61,294
162,068
Special reserve term and personal
loans
44,127
24,102
Total reserve fund
$4,622,098
$3,882,373

N. J. TOOMEY, President.
E. ROBERTSON, General Manager.

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

1983 $
1982 $
Funds were provided:
From operations—
Tax paid profits
748,356
1,102,475
Adjustment for items not involving
movement of funds:
Depreciation
$290,934
219,544
Less investment amortisation
87,425
(56,832)
Total funds from operations
951,865
1,265,187
From other sources—
Increase in depositors balances
13,870,983
28,735,375
N.Z. Government and local authority
stock
5,402,839
2,201,178
Mortgages
12,007,512
10,922,139
Term and personal loans
2,971,803
2,489,894
Increase in long term borrowing
516,432
61,292
35,721,434
45,675,065

Funds were applied to:
New Investments in—
N.Z. Government and local authority
stock
9,131,381
11,541,760
Mortgages
13,306,224
19,838,030
Overdraft advances and trusteebank
visa (net)
281,251
1,276,866
Term and personal loans
4,654,528
7,686,944
Fixed assets additions (net)
1,120,789
632,176
Deferred taxation
59,979
(226,391)
Provision for donations (net)
69,925
69,830
Increase in working capital
7,097,357
4,855,850
$35,721,434
$45,675,065

PROFIT STATEMENT FOR YEAR ENDED 31 MARCH 1983

1983 $
1982 $
Income—Interest
N.Z. Government
stock
4,676,905
4,017,650
Local authority stock
10,605
30,686
Mortgages, term and
personal loans
11,171,277
9,554,138
Term deposits and
overdrafts
1,672,834
1,393,804
17,531,621
14,996,278
Investment amortisation
87,425
56,832
Commissions, rents, fees, etc.
397,702
402,075
Profit on sale of assets and
investments
82,457
(12,957)
Total income
18,099,205
15,442,228
Less: Expenses
Interest on depositors’ funds
10,989,349
8,766,797
Administration expenses (see
Note 4)
5,794,979
4,796,927
Total expenses
16,784,328
13,563,724
Net profit: before taxation
1,314,877
1,878,504
Less: taxation
Current
621,461
591,804
Prior year
5,039
(42,166)
626,500
549,638
Deferred tax—reversal
59,979
(226,391)
566,521
776,029
Tax paid profit for year
748,356
1,102,475
Add: Unclaimed donations
75
170
7,48,431
1,102,645
Less Appropriation—
Provision for donations
70,000
70,000
Special reserve term and
personal loans
20,025
90,025
14,209
Balance: transferred to general
reserve
$658,406
$1,018,436

NOTES TO THE ACCOUNTS

1. Statement of Accounting Policies:

(a) General accounting principles—The general accounting
principles as recommended by the New Zealand Society
of Accountants for the measurement and reporting of profit
and financial position under the historical cost method has
been followed in the preparation of these accounts, except
for the revaluation of land and buildings.

(b) Particular accounting principles—The following particular
accounting principles which materially affect the
measurement of profit and financial position have been
applied:

(i) Interest Income—Interest is recognised on an accrual
basis. Personal loan interest excludes unearned interest, and
has been apportioned according to the “Rule of 78”
method.

(ii) Fixed Assets—All fixed assets are valued at cost less
accumulated depreciation with the exception of land and
buildings which have been revalued to 90 percent of
professional valuations.

For accounting purposes, depreciation is calculated using
straight-line rates based on the economic life of the assets.

The following lives have been estimated:

Buildings
40–50 years
Furniture and fittings
7–10 years
Office equipment
7–10 years
Motor vehicles
3 years to estimated residual value

(iii) 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.

Deferred Taxation arises from timing differences between
accounting and taxation recognition of income and
expenditure. These differences relate to depreciation and
investment income.

(iv) Current Assets—Debtors are valued at expected
realisable value. Stock on hand as shown in the balance
sheet represents bulk stationery supplies valued at cost less
a provision for obsolescence.

(v) Investments—Investments are disclosed at cost except
for Government stock which is at cost adjusted by interest
accrued contained in the purchase price, and by the
amortisation on a straight-line basis of premiums and
discounts over the term of the investment. In accordance
with this policy the amortisation credited to revenue for
this financial year amounts to $87,425 (1982—$56,832).

(c) Changes in Accounting Policies—There have been no changes
in accounting policies that would have a material effect on
the determination of profit for the year.