4940
THE NEW ZEALAND GAZETTE
No. 210

Investments—
New Zealand Government stock 15,209,702 13,597,676
Local authority securities 171,413 193,298
Mortgages and personal loans 22,901,493 20,502,101
38,282,608 34,293,075

Fixed Assets Land and Buildings—
Cost price 584,053 578,708
Depreciation to Date 54,897 49,265
529,156 529,443

Furniture and Equipment—
Cost price 1,062,259 861,456
Depreciation to date 391,266 283,052
670,993 578,404
$43,666,100 $40,028,612

W. D. BENJAMIN, President.
K. J. BEAMS, General Manager.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 1984

    1984    1983
    $ $

Interest To Depositors 3,493,740 3,242,881
Administration Expenses 1,567,328 1,382,115
Trustees honoraria 1,650 4,013
Depreciation 155,782 110,744
Provision for taxation 157,423 75,112
1,882,183 1,571,984
Net profit after taxation 205,931 91,002
$5,581,854 $4,905,867

Interest On Investments—
1984 1983
$ $
From New Zealand Government stock 1,622,383 1,341,626
From local authorities 12,667 10,551
From mortgages and personal loans 3,399,092 2,781,758
From other sources 410,881 697,132
5,445,023 4,831,067

Income From Other Sources—
Commission 113,488 54,082
Rents 23,343 20,718
136,831 74,800
$5,581,854 $4,905,867

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR THE YEAR ENDED 31ST MARCH 1984

Donations 20,000 20,000
Balance transferred to reserve fund 185,931 71,002
$205,931 $91,002

Net profit after taxation 205,931 91,002
$205,931 $91,002

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

Funds Were Received From—
Operations:
Net profit after tax and donations 185,931
Adjustment for items not involving movement of funds:
Depreciation 155,782
Deferred Taxation 157,423 499,136

Repayment of Principal:
Government securities 1,000,000
Local authority securities 22,526
Mortgages and personal loans 8,517,635 9,540,161

Increase in Liabilities:
Increase in depositors balance 2,785,247
Increase in Working Capital 953,232
$13,777,776

These Funds Were Applied To—
Net Capital Expenditure:
Fixed assets 248,083

New Investments In:
Government securities 2,612,026
Local authority Securities 641
Mortgages and personal loans 10,917,026 13,529,693
$13,777,776

Net Increase In Working Capital:
Cash resources 948,178
Interest accrued on investments (50,757)
Debtors and prepayments (54,274)
Sundry creditors 48,192
Interest accrued on investment accounts 61,893
$953,232

NOTES OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 1984

Statement of Accounting Policies—

(a) General Accounting Policies—The accounting policies recognised as appropriate for the measurement and reporting of results and financial position under the historic cost method of accounting have been adopted on a basis consistent with the previous year.

(b) Recognition of Income—The income earned is recorded on an accrual basis and includes the amortization of premiums and discounts on the purchase of Government and local authority stock. Interest on personal loans is calculated according to the Rule of 78.

(c) Expenditure—Interest on depositor’s accounts represents interest paid, credited or accrued for the financial year ended 31st March 1983. Other expenses, including computer development costs, are charged to the accounts in the year in which the expenditure is incurred.

(d) Fixed Assets and Depreciation—Fixed assets are valued at cost less accumulated depreciation. Depreciation has been charged using the straight line method based on the economic life of the assets.

The current market value of land and buildings is $1,492,500.

(e) Taxation—Taxation charged against net profit is the estimated expense relating 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) The amortization of profits and losses in respect of Government and local authority stock purchases and sales.

(f) Valuation of Investments—All investments are shown at cost with the exception of New Zealand Government stock.

On the basis that Government stock will normally be held to maturity the bank considers it appropriate to record such stock at nominal value. Discounts and premiums on nominal value of Government stock are amortised over the term of the investment on a straight line basis.

REPORT OF THE AUDITORS

We report that we have audited the books and accounts of the Westland Savings Bank for the year ended 31st March 1984 and have obtained all the information and explanations we have required.

In our opinion the accompanying profit and loss account, balance sheet, statement of changes in financial position of the bank at 31st March 1984 and the results of the year ended on that date, determined in accordance with the historical cost basis of accounting and in accordance with section 29 (2) of the Trustees Savings Bank Act 1948.

MARSHALL & HEAPHY, Chartered Accountants.
11th May 1984.

9081