21 JUNE
THE NEW ZEALAND GAZETTE
2309

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1984

Income:
1984
$000
1983
$000

New Zealand Government securities
39,183
28,626

Local authorities securities
904
3,111

Mortgages
59,762
54,070

Other investments
18,449
14,170

118,298
99,977

Rent, commissions, etc.
5,204
3,882

Profit on redemption—New Zealand Government
securities
16
274

Profit on Sale—Local authorities securities
46

Total Income
123,318
104,133

Less Expenditure:

Interest credited and accrued to depositors
76,437
62,131

Charges and administration expenses etc.
30,902
28,909

Loss on sale—New Zealand Government securities
1,368

Trustees fees and allowances
46
46

2,309
2,301

Net profit before taxation
111,062
93,387

Less: Provision for taxation
12,456
10,746

Net profit for year
7,353
6,142

Balance of reserve fund 31 March 1983
47,243
41,743

Overprovision for donations
630
9

54,596
47,893

Less: Provision for donations
630

Balance of reserve fund 31 March 1984
$53,946
$47,243

To be read in conjunction with the notes to the financial
statements.

L. J. CHRYSTALL, President.
L. E. EDMONDS, General Manager.
Auckland, 15 May 1984.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 MARCH 1984

1. General Accounting Policies
   (a) The measurement base adopted is that of historical cost.
   Reliance is placed on the fact that the Bank is a going concern.
   (b) Accrual accounting is used to match expenses and revenues.

2. Particular Accounting Policies
   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
5–10 years

Calculating Equipment

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.

3. Changes in Accounting Policies
   There have been no material changes in accounting policies.

4. The loss on New Zealand Government Securities recorded this
   year resulted from the sale of low yielding securities, the proceeds
   from which were re-invested in higher yielding securities.

5. (a) Fixed Assets

1984
$000
1983
$000

Land
4,711
4,549

Buildings
16,030
12,888

Accumulated depreciation
(1,692)
(1,571)

14,338
11,317

Computer, other assets
22,248
21,152

Accumulated depreciation
(10,131)
(8,309)

12,117
12,843

$31,166
$28,709

(b) The above cost of land and buildings includes $6,716,000 (1983
$3,784,000) in respect of the Bank’s share of 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 $12,333,000 (1983 $12,081,000). The latest
Government valuation received in respect of properties
totalled $31,882,000 (1983 $21,733,000).

6. 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.

7. Commitments

1984
$000
1983
$000

Capital expenditure commitments
2,761
4,452

Lending commitments approved but not
advanced
27,006
14,778

AUDITORS’ REPORT

We have audited the books and accounts of the Auckland Savings
Bank for the year ended 31 March 1984 in accordance with generally
accepted auditing standards, and have carried out such procedures
as we considered necessary. In our opinion, the balance sheet and
profit and loss account, together with the notes thereon, are properly
drawn up so as to give using the historical cost method, a true and
fair view of the financial affairs of the Auckland Savings Bank as
at 31 March 1984 and the results of its operations for the year ended
on that date, in accordance with section 43 (2) of the Trustee Banks
Act 1983.

TOUCHE ROSS & CO., Chartered Accountants.
Auckland, 15 May 1984.

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