6 SEPTEMBER
THE NEW ZEALAND GAZETTE
3651

By Interest:

New Zealand Government stock 1984
$ 1984
$ 1983
$

    2,291,499       1,832,770

Local authorities 8,910 63,764
Fixed deposits 716,826 677,578
Visa/overdrafts 92,920 53,307
Mortgages 3,571,213 3,481,069
Personal loans 322,740 265,265
Term loans 555,637 124,215

Total Investment income 7,559,745 6,497,968
To commission, brokerage, etc. 120,437 104,247
To profit on sale of Government stock 7,370 45,392
To rents received 6,640

    $7,687,552      $6,654,247

PROFIT AND LOSS APPROPRIATION ACCOUNT
FOR YEAR ENDING 31 MARCH 1984

    1984

$ 1983
$

To provision for grants 40,000 35,000
To balance to reserve fund 250,563 145,411

    $290,563        $180,411

By net profit from profit and loss account 290,563 166,219
By refund of Income Tax 14,192

    $290,563        $180,411

A. F. McLAY, President.
D. R. PARKER, General Manager.

TRUSTEEBANK SOUTH CANTERBURY
(Formerly—South Canterbury Savings Bank)

NOTES TO ACCOUNTS FOR YEAR ENDED 31 MARCH 1984

NOTE 1: Statement of Accounting Policies:

The general accounting principles recommended by the New Zealand Society of Accountants for the measurement and reporting of profit on an historical cost basis have been followed by the bank.

The following particular accounting policies have been applied:

(a) Recognition of Income and Expenditure—

Investment income includes interest accrued to 31 March. Interest on personal loans is added at the commencement of the loan. This amount is brought into revenue during the appropriate financial years by applying the “Rule of 78”. Interest on savings and current accounts represents interest credited at 31 March and the interest paid on closed accounts during the year. Investment accounts which are credited with interest during the year have had an appropriate adjustment made for the interest accrued to 31 March.

Interest paid and accrued on depositors’ investment accounts has been calculated at the full rate payable on the assumption that all deposits will reach maturity.

(b) Fixed Assets and Depreciation—

(a) The fixed assets, have been depreciated at depreciation rates approved by the Inland Revenue department. Computer equipment has been depreciated at the first year rate of 25 percent of cost price and thereafter at 20 percent of the diminishing value each year. All assets still in use are included in the books and it is calculated that the depreciation rates being used will write off the items over the period of their useful lives. In accordance with the bank’s established policy no additional depreciation as provided for in the rates set by the Inland Revenue department on the purchase of assets (other than the computer equipment) have been claimed for taxation purposes.

(c) Investment—

The New Zealand Government stock and local authority securities are recorded at face value on purchase. Premium redemptions and discounts due on maturity of Government stock purchased under par are held in reserve to be brought to account either upon maturity or sale of the stock concerned. Similarly any premium paid on the purchase of Government stock is also held in reserve to be written off as a loss on maturity or earlier sale of the particular stock.

(d) Taxation—

Taxation includes current tax actually payable and deferred tax in respect of accrued interest not included in assessable income until received.

NOTE 2: Fixed Assets:

    1984                1983
    Cost Price      Accumulated Depreciation        Book Value      Cost Price      Accumulated Depreciation        Book Value

Land 134,973 52,845 134,973 126,273 42,598 126,273
Buildings 538,515 485,670 459,565 585,838 10,542 416,967
Leasehold premises 673,488 52,845 620,643 585,838 42,598 543,240
Office equipment and furniture 30,087 13,658 16,429 29,953 10,542 19,411
Motor vehicles 958,514 480,077 478,437 763,757 377,082 386,675
73,080 17,578 55,502 67,244 16,202 51,042

    $1,735,169      $564,158        $1,171,011      $1,446,792      $446,424        $1,000,368

The bank owns property in Timaru, Temuka, Fairlie, Waimate, Ashburton, Methven and Geraldine. It leases property in Tinwald, Pleasant Point, Methven and Timaru. The leases have been negotiated to provide long-term tenancy options.

NOTE 3: Mortgages:

Mortgages and other loan applications approved but for which the funds have not been uplifted at 31 March 1984 amount to $1,081,450.

STATEMENT OF CHANGES IN FINANCIAL POSITION—YEAR ENDED 31 MARCH 1984

    1984

$ 1983
$

Funds were received from—
From depositors 6,646,694 6,339,889
From operations—
Profit after taxation 290,563 166,219
Adjustment for items not involving the use of funds 135,718
Depreciation (less recovered) 426,281 99,699 265,918

    7,072,975       6,605,807

Less grants 40,000 35,000

    7,032,975       6,570,807

Increase in other liabilities and provisions 407,761 71,238

    $7,440,736      $6,642,045

These funds were invested in
Mortgages—new advances 4,760,840 4,912,550
Less repayments 3,473,200 3,813,935

    1,287,640       1,098,615

Government stock and local authority stock 2,315,223 525,611
Personal and other loans 2,090,820 1,739,123
Total Investments 5,693,683 3,363,349
Net Capital
Land and Buildings 87,650 78,031
Other Assets 218,711 175,452

    306,361     253,483

Increase in cash resources and current assets 1,440,692 3,025,213

    $7,440,736      $6,642,045

AUDITORS’ REPORT TO THE BOARD OF TRUSTEES

WE the undersigned, being the auditors of Trusteebank South Canterbury (formerly South Canterbury Savings Bank) appointed in terms of section 29 (3) of the Trustee Savings Banks’ Act 1948, report that: We have examined the balance sheet and accompanying financial statements and notes to the accounts for the year ended 31 March 1984. Our examination was made in accordance with the general principles of auditing and included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

We have obtained all the information and explanations that we have required and in our opinion proper books of accounts have been kept by the Bank and the accompanying balance sheet together with the profit and loss account and the notes attached thereto give a true and fair view of the financial position of the bank as at 31 March 1984 and the results of its operations and the source and application of funds for the year then ended.

HUBBARD CHURCHER & CO., Chartered Accountants.
Timaru, 21 May 1984.

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