13 DECEMBER
THE NEW ZEALAND GAZETTE
5737

Buildings
Furniture and Fittings
Office Equipment
Motor Vehicles

40-50 years
7-10 years
5-10 years
3 years to
estimated
residual value.

(iii) Taxation—The charge for Income Tax is the amount
of the tax liability in respect of the accounting profit for
the year and includes both current and deferred tax.

Deferred Taxation arises from timing differences between
accounting and taxation recognition of income and
expenditure. These differences relate to depreciation and
investment income.

(iv) Current Assets—Debtors are valued at expected
realisable value. Stock on Hand as shown in the Balance
Sheet represents bulk stationery supplies valued at cost less
a provision for obsolescence.

(v) Investments—Investments are disclosed at cost except
for Government Stock which is at cost adjusted by interest
accrued contained in the purchase price, and by the
amortisation on a straight line basis of premiums and
discounts over the term of the investment. In accordance
with this policy the amortisation credited to revenue for
this financial year amounts to $155,088 (1983—$87,425).

(c) Changes in Accounting Policies—There have been no changes
in accounting policies that would have a material effect on
the determination of profit for the year.

2. Investments:

N.Z. Government Stock
Local Authority Stock

Nominal
Value $
64,295,979
221,762

Book
Value $
63,867,982
221,762

Nominal
Value $
50,172,019
101,829

Book
Value $
49,811,983
101,829

$64,517,741
$64,089,744
$50,273,848
$49,913,812

The market value of the Bank’s Government Stock holding is
$64,369,254.

3. Fixed Assets:

Freehold
Office
Machinery
Other Fixed
Assets
Land at
Valuation
Total Fixed
Assets

1984
Cost $
2,241,850
1,555,730

4,782,055

684,900

$5,466,955

1984
Accumulated
Depreciation $
201,297
736,943

1,382,955

$1,382,955

Book
Value $
2,040,553
818,787

3,399,100

684,900

$4,084,000

1983
Cost $
1,855,989
1,461,061

4,143,426

599,300

$4,742,726

1983
Accumulated
Depreciation $
145,989
587,251

1,112,597

$1,112,597

Book
Value $
1,710,000
873,810

3,030,829

599,300

$3,630,129

The current Government Valuation of Land and Buildings is
$2,152,000.

Costs of Additions since: $45,155.

4. Administration Expenses:

Included in the above are:

Audit Fee
Depreciation
Mortgage Interest
Trustees Fees

1984
$
18,000
312,124
46,144
20,226

1983
$
16,000
290,934
50,255
20,271

5. Commitments:

Loans approved but not yet uplifted
Premises

$3,261,329
$616,883

AUDITOR’S REPORT TO THE TRUSTEES OF THE
EASTERN AND CENTRAL SAVINGS BANK

We have examined the balance sheet of the Bank as at 31 March
1984, and the related profit statement and statement of changes in
financial position for the year then ended. Our examination was
made in accordance with generally accepted auditing standards and
accordingly included such tests of the accounting records and such
other auditing procedures as we considered necessary in the
circumstances.

In our opinion, the accompanying balance sheet, profit statement
and statement of changes in financial position present fairly, using
the historical cost method, the financial position of the Bank at 31
March 1984, and the results of its operations and the changes in
financial position for the year then ended, in conformity with
generally accepted accounting principles applied on the basis
consistent with that of the preceding year.

BROWN WEBB & CO., Chartered Accountants.
Hastings, 23 May 1984.
9080

OTAGO SAVINGS BANK
PROFIT STATEMENT FOR THE YEAR ENDED 31 MARCH 1984

Income:
Interest on Deposits
Government stock
Local Authority stock
Mortgages
Personal loans and other advances

$ 1984
1,833,806
6,962,190
9,878
14,071,076
2,127,685

$ 1983
2,002,974
5,609,452
342,616
12,653,304
1,380,016

$ 25,004,635
168,776

21,988,362
162,918

Rents
Commission, refunds, dividends and
other income
Inspection fees

436,061
101,940

518,747
48,314

Total expenses

25,711,412

22,738,341

Less Expenditure:
Interest on deposits
Audit fees
Trustees fees
Administration expenses
Depreciation

17,126,730
34,475
28,750
6,934,980
393,349

14,762,400
20,619
28,750
6,442,798
313,529

24,520,284

21,577,105

Profit before abnormal items
Realised profit on sale of investments
and fixed assets

1,191,128
626,872

1,161,236
265,621

1,818,000

1,426,857

Profit Before Taxation:
Taxation—
Current (Note 5)
Deferred (Note 5)
Overprovided in prior years

707,086
(1,424)

109,907
426,337
(3,797)

705,662

532,447

Profit after Taxation
Less provision for grants
Add retained earnings brought forward
Add back provisions for grants not
allocated
Retained Earnings 31 March 1984

1,112,338
(125,000)
6,048,568
350

894,410
(100,000)
5,253,308
850

$7,036,256

$6,048,568

BALANCE SHEET AS AT 31 MARCH 1984

Depositors’ Accounts
Total savings and current
accounts
Investment accounts and
term deposits
National savings accounts
Total liability to
depositors
Other Liabilities
Interest accrued on
investment accounts
Sundry creditors
Total other liabilities
Provisions for grants
Provision for deferred
taxation
Provision for current taxation

$ 1984
48,843,918

151,733,159

200,577,077
32,299

200,609,376

5,550,882
682,272

6,233,154
125,000

2,633,185

2,758,185

$ 1983
59,164,497

117,169,624

176,334,121
33,054

176,367,175

5,626,779
356,055

6,182,834
100,000

1,926,099
68,065

2,094,164

Reserve Fund
Retained earnings
Property revaluation reserve
(Note 2)

7,036,256
3,670,038

10,706,294

6,048,568
3,330,020

9,378,588

$220,307,009

$194,022,761

Current Assets
Cash resources
Interest due and accrued on
investments
Sundry debtors
Personal advances
Current taxation refund

10,255,674
3,945,187
82,067
2,905,401
111,530

16,548,577
3,549,587
275,689
1,792,690

17,299,659

22,157,543

Investments
New Zealand Government
Stock (Note 3)
Local authority securities
Mortgages
Personal loans (less unearned
interest)
Other investments (at cost)
Total investments

74,497,793
208,148
106,392,345
12,406,045
18,276

193,522,607

62,149,922
350,331
92,783,245
8,277,335
13,750

163,574,583

National Savings Securities
New Zealand Government
Stock
Cash resources
Total National Savings
Securities
Total of current assets,
investments and
securities

31,700
599

32,299

32,487
567

33,054

210,854,565
9,452,444

$220,307,009

185,765,180
8,257,581

$194,022,761

Fixed Assets (Note 4)

R. F. WALLS, President.
A. L. FLEURY, General Manager.