1 NOVEMBER
THE NEW ZEALAND GAZETTE
4743

WANGANUI SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1984

Depositors Funds—
1984 $ 1984 $ 1983 $
Savings 35,085,312 26,632,131
Personal cheque 3,319,585 3,158,163
Investment 28,895,993 26,089,663
Housing bonds 6,877,000 6,877,000
Accrued interest (note 1 i) 1,081,971 1,001,895
Total liability to depositors 75,259,861 63,758,852

Current Liabilities—
Bank overdraft 619,139 40,000
Provision for donations 32,600 81,786
Provision for taxation (note 4) 11,900
Mortgages (payable within 12 months) 289,867
Sundry creditors 366,069 423,553
Total current liabilities 1,017,808 790,400

Other liabilities—
Mortgages 709,400 351,600
Provision for deferred taxation (note 5) 450,125
Total other liabilities 709,400 450,125

Reserve fund—
Profit and loss appropriation 1,381,265 971,029
Balance brought forward appropriation account balance 410,236
Revaluation Reserve Balance brought forward 405,924 327,847
Plus annual adjustment (note 6) 22,628 78,077
Total reserve fund 2,328,178 1,787,189

Total assets $79,315,247 $66,419,719

Current assets—
1984 $ 1984 $ 1983 $
Cash on hand at bank 566,048 1,317,556
Fixed deposits and short term investments 8,500,000 5,048,000
Interest accrued on investments 1,258,003 641,063
Sundry debtors and prepayments 592,682 435,191
Stock (note 1 k) 108,338
Tax refund due (note 4) 261,765
Total current assets 11,178,498 7,550,148

Investments—
Government stock (note 2) 25,825,991 20,371,203
Local authority stock 123,000 186,000
Mortgages 34,817,523 32,299,632
Personal loans (note 1 h) 4,132,869 3,615,939
Investment associate company (note 3) 352,117 202,466
Depositors overdrafts 1,439,623 794,144
Total investments 66,711,123 57,469,384

Fixed assets: (note 1 f)
Land 278,600 272,000
Building and improvements 781,054 637,266
Less depreciation to date 130,087 83,974
Furniture and fittings 202,736 171,514
Less depreciation to date 113,804 44,355
Vehicles 61,754 47,161
Less depreciation to date 17,399
Office equipment 707,838
Less depreciation to date 345,066 362,772
Total fixed assets 1,425,626 1,400,187

$79,315,247 $66,419,719

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

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1984

Income—
1984 $ 1984 $ 1983 $ 1983 $
New Zealand Government stock 2,745,035 2,163,261
Local authority 12,074 5,988
Mortgages 4,563,224 4,400,168
Personal loans 794,651 657,877
Overdrafts 161,121 102,270
Fixed and call deposits 1,096,033 582,964
Total investment income 9,372,138 8,002,528

Sundry income 452,226 360,550
Total income 9,824,364 8,363,078

Less expenditure—
Interest on depositors accounts:
Savings—paid and credited 1,627,514 1,482,419
Investment—paid and accrued 4,063,121 3,668,796
Total interest 5,690,635 4,758,136

Other expenses—
Management and staff expenses 1,630,574 1,482,419
Trustees fees and expenses 27,823 21,593
General operating expenses 1,050,855 859,688
Audit fees 14,000 14,000
Promotional expenses 166,262 164,821
Property expenses 29,548 67,167
Office equipment expenses 87,738 70,971
Depreciation 168,703 119,130
Total other expenses 3,175,533 2,799,729

Total expenditure 8,866,168 7,557,865
Net profit before taxation 958,196 805,213
Taxation expenses (note 4) 430,139 355,690
Net profit after taxation $528,057 $449,523

APPROPRIATION ACCOUNT
Net profit from profit and loss account 528,057 449,523
Provision for donations! (32,600) (40,000)
Prior year taxation (under/over provided (6,747) 450
Share of profit associate company (note 3) 29,651 263
Balance to reserve fund $518,361 $410,236

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

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

Funds were provided—
From operations:
Net profit before tax 958,196
Share of net profit associate company 29,651
Plus adjustments not involving movement of funds—depreciation 168,703

Increase in depositors funds:
— Savings accounts 8,452,723
— Personal cheque accounts 161,422
— Investment accounts 2,886,864

Decrease in investments:
— Local authority stock 63,000
— Net decrease in working capital 780,756

$13,501,315

Funds were applied to—
Increase in investments:
— Short-term deposits 3,452,000
— Government stock 5,454,788
— Personal loans to depositors 516,930
— Mortgage advances to depositors 2,517,891
— Overdraft advances to depositors 665,479
— Associate company investment 149,651
Repayment of mortgage borrowing 110,425
Net increase in fixed assets 171,514
Payment of taxes 422,637
Donations 40,000

$13,501,315

Increase/(Decrease) in Working Capital:
Cash and bank (1,370,647)
Receivables 774,431
Stock (108,338)
Payables (76,202)

NOTES TO THE ACCOUNTS

1. Statement of accounting policies:
   General Accounting Policies
   (a) The measurement base adopted is that of historical cost modified by the revaluation of land and buildings. Reliance is placed on the fact that the Bank is a going concern.
   (b) Accrual accounting is used to match expenses and revenue.

Particular Accounting Policies
(c) Sundry Debtors are shown at expected realisable value.
(d) Government Stock and Local Authority Stock are shown at face value, adjusted by any premium paid or discount received, which is amortized or credited to revenue over the term of the investment.
(e) Investments in Associated Companies are shown at cost plus a share of increases in net assets since the date of acquisition of shares.
(f) Land and buildings are shown at a Registered Valuers current valuation less accumulated depreciation. All other Fixed Assets are shown at cost less accumulated depreciation.
(g) Depreciation is provided on a straight line basis which will write off the cost and revaluation over their estimated useful lives. The useful lives are estimated as follows:
Building 10 to 50 years
Office Equipment 5 to 10 years
Furniture 5 to 10 years
Vehicles 5 years.
(h) Interest on Personal Loans is added to the principal at the commencement of the loan, and this amount is brought into revenue during the appropriate financial year by applying the “Rule of 78”. The Balance Sheet figure is net of unrecognized interest income.
(i) Taxation expense charged in the Profit and Loss Account recognises the effect of both current and deferred taxation.