5428 THE NEW ZEALAND GAZETTE No. 223

(b) Investments
(i) The bank's one-fifth shareholding in Northern Trustee Computerbank Limited as at the company's 31 May 1983 balance date has been treated on an equity basis.
(ii) New Zealand Government Securities have been valued on a purchase yield basis.
(iii) Other investments have been recorded at cost less a provision for doubtful debts of $140,000 (1983 $140,000).

(c) Fixed Assets and Depreciation
(i) Land is recorded at the higher of original cost or the 1981 Government Valuation.
(ii) Buildings are now being revalued annually and are recorded at a value which is 90 percent of the Registered Valuer's valuation.
(iii) Maximum rates of depreciation as approved by the Commissioner of Inland Revenue have been used, except for assets which have been revalued, to which the approved rates have been applied.
(iv) The cost of lease goodwill has been spread evenly over the terms of the leases.

Changes in Accounting Policies:
Buildings, which were previously disclosed at cost, are now being revalued annualled as noted in the particular accounting policy 1 (c) (ii). The effect of this change in the current year has been to reduce the net profit after taxation by $23,632, being depreciation on the revalued amount. The revaluation of buildings has increased the reported value of the bank's assets and reserves by $2,630,000.

With this exception, there have been no changes in the above accounting policies which have been applied on bases consistent with those used in previous years.

                        1984    1983
                        $000    $000

2. Interest Income—
   Government and local authority securities 9,238 6,739
   Mortgages and other lending 21,568 19,311
   Associated company 5 5
   $30,811 $26,055

3. Operating Expenses—
   Audit fee 35 26
   Bad or doubtful debts 15 171
   Depreciation 417 369
   Rentals 220 205
   Trustees' fees 31 26
   Other expenses 7,597 6,507
   $8,315 $7,304

4. Net Loss on Trading Securities—
   Amortization of loss on trading Government stock .. 75 75
   Other trading profits/losses 43 20
   $118 $95

5. Taxation—
   Current:
   Taxation as per Profit Statement 2,077 1,712
   Less prior period taxation (192) (3)
   Less timing differences transferred to deferred tax (1,614) (233)
   Current taxation payable 271 1,476
   Plus 1982 taxation outstanding 46
   271 1,522
   Less provisional tax paid (1,570) (557)
   Taxation payable/(refund due) ($1,299) $965

Deferred:
Provision for deferred tax 1,144 911
Plus current deferred portion 1,614 233
$2,758 $1,144

Both the provision for current taxation and the provision for deferred taxation include amounts relating to items currently under investigation by the Inland Revenue Department.

6. Changes to Reserves—
   Revenue Reserves:
   Northern Trustee Computerbank Limited equity adjustment (15)
   Prior year adjustments—Expenses (3)
   Loss on sale of securities recovered 75 75
   Unamortised discount 1
   76 57

                        1984    1983
                        $000    $000

Capital Reserves:
Land Revaluation .. .. .. 75
Building revaluation .. .. 2,630
Capital profit on sales of assets .. .. 6
2,630 81
$2,706 $138

7. Reserves—
   Revenue Reserves:
   Retained Earnings .. 7,357 5,630
   Northern Trustee Computerbank Limited .. 104 74
   Unallocated Profit/Loss on sale of securities .. (42) (119)
   $7,419 $5,585

Capital Reserves:
Land and buildings revaluation .. 2,844 215
Profit on sale of assets .. 6 6
2,850 221
$10,269 $5,806

8. New Zealand Government Securities—
   Statutory ratio requirements are based on nominal value of Government securities held and current practice generally is to hold such securities to or near maturity.

Valuation at purchase yields .. .. 88,514 68,221
Nominal value .. .. 91,054 70,877
Market value .. .. 90,148 60,188

9. Local Authority Securities—
   Total advances .. .. 11,336 11,064
   Less sales and matured advances .. .. 10,864 10,456
   $472 $608

Current balance of debenture held .. .. 287 520
Nominal value of registered stock held .. .. 185 88
$472 $608

Market value of registered stock .. .. 193 70

10. Associated Company—
    Northern Trustee Computerbank Limited:
    Shares at cost .. .. 140 80
    Shares of profits .. .. 104 74
    Debenture at cost .. .. 93 33
    $337 $187

11. Fixed Assets—
    Land (at 1981 valuation) .. .. 385 385
    Land (at cost) .. .. 142 97
    Land—Leasehold .. .. 78 77
    605 559

Buildings at cost .. .. 2,347
Buildings at revaluation .. .. 4,852
Less accumulated depreciation .. .. 104
4,852 2,243

Other fixed assets at cost .. .. 4,035 3,526
Less accumulated depreciation .. .. 2,288 1,922
1,747 1,604
$7,204 $4,406

Government Valuations (1981):
Head office land and buildings
Land .. .. 385 385
Improvements .. .. 1,317 1,317
Capital value .. .. 1,702 1,702
Branches
Land .. .. 46 32
Improvements .. .. 8
Capital value .. .. 54 32

12. Commitments—
    Loans .. .. 5,632 1,804
    Other .. .. 2,000

13. Contingent Liabilities—
    Visa, overdrafts, unused limits .. .. 7,283 6,561
    Other .. .. 112