3778 THE NEW ZEALAND GAZETTE No. 160

BALANCE SHEET AS AT 31 MARCH 1985

| Other Liabilities | | | | |
| Interest accrued on depositors | | | | |
| accounts | 5,737,977 | | 5,550,882 |
| Sundry creditors | 656,587 | | 682,272 |
| Total other liabilities | | 6,394,564 | | 6,233,154 |

| Provisions: | | | | |
| Provision for grants | 150,000 | | 125,000 |
| Provision for deferred taxation | 3,360,397 | | 2,633,185 |
| | | 3,510,397 | | 2,758,185 |

| Reserve Fund: | | | | |
| Retained earnings | 7,800,093 | | 7,036,256 |
| Property revaluation reserve | 4,412,858 | | 3,670,038 |
| (Note 2) | | 12,212,951 | | 10,706,294 |

| | | $261,986,605 | | $220,307,009 |

| Current Assets: | | | | |
| Cash, bank balances and call | | | | |
| deposits | 14,870,914 | | 3,383,612 |
| Short term deposits | 8,937,832 | | 6,872,062 |
| Interest due and accrued on | | | | |
| investments | 5,240,440 | | 3,945,187 |
| Sundry debtors | 326,266 | | 82,067 |
| Personal advances | 4,177,110 | | 2,905,401 |
| Current taxation refund | — | | 111,330 |
| | | 33,552,562 | | 17,299,659 |

| Investments: | | | | |
| New Zealand Government | | | | |
| Securities (Note 3) | 90,959,996 | | 74,497,793 |
| Local authority securities | 392,208 | | 208,148 |
| (Note 3) | | | | |
| Mortgages | 109,723,927 | | 106,392,345 |
| Personal loans (less unearned | | | | |
| interest) | 16,606,622 | | 12,406,045 |
| Other investments (at cost) | 1,071,246 | | 18,276 |
| (Note 4) | | | | |
| Total investments | | 218,753,999 | | 193,522,607 |

| Total of current assets and |
| investments | | 252,306,561 | | 210,822,266 |

| National Savings Securities:|
| New Zealand Government | | | | |
| Securities | 29,762 | | 31,700 |
| Cash resources | 587 | | 599 |
| Total National Savings | | 30,349 | | 32,299 |
| Securities | | | | |

| Total of current assets, | | | | |
| investments and securities | | 252,336,910 | | 210,854,565 |

| Fixed Assets (Note 4) | | 9,649,695 | | 9,452,444 |
| | | $261,986,605 | | $220,307,009 |

R. F. WALLS, President.
P. R. GEORGE, General Manager.

TRUSTEEBANK OTAGO

NOTES TO THE FINANCIAL STATEMENTS

Note 1: Accounting Policies

General Accounting Policies

The following general accounting policies have been adopted by the Bank in the preparation of the financial statements:

• The historical cost basis is used, modified for the revaluation of land and buildings, and amortisation of government and local authority securities.
• Accrual accounting is used to match revenue and expenses.
• Reliance is placed on the fact that the Bank is a going concern.

Particular Accounting Policies

Recognition of Income

Income shown in the profit statement is earned in the current year and includes the amortisation of premiums and discounts on the purchase of government and local authority securities. In the case of personal loans, interest is added to the advance at the commencement of the loan and brought into revenue during the appropriate financial years in accordance with the ‘Rule of 78’.

Expenditure

Interest Credited to Depositors

Depositors accounts which are credited with interest during the year have had an appropriate adjustment made for interest accrued to 31 March.