3988 THE NEW ZEALAND GAZETTE No. 168

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1985

To interest credited and accrued to depositors ..
To audit fees
To trustees fees
To administration expenses
To depreciation (note 1:2)
—Current
—Deferred
To net profit to profit and loss appropriation account

By Interest:
New Zealand Government stock ..
Local authority stock
Short term deposits ..
Mortgages
Personal loans
Term loans
Visa
Overdrafts

By commission, fees and other income ..
By amortisation of premium and discount on Government stock (note 1:1)

PROFIT AND LOSS APPROPRIATION ACCOUNT FOR YEAR ENDING 31 MARCH 1985

To provision for grants
To balance to reserve fund

By net profit from profit and loss account
By refund of Income Tax ..

J. E. THOMPSON, President.
D. R. PARKER, General Manager.

TRUSTEEBANK SOUTH CANTERBURY
NOTES TO FINANCIAL STATEMENTS

NOTE 1: Accounting Policies:
General Accounting Policies—
The following accounting policies have been adopted by the Bank in the preparation of the financial statements:

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

Particular Accounting Policies:
Recognition of Income—
Income shown in the Profit and Loss Account is earned in the current year and includes the amortisation of premiums and discounts on the purchase of government and local authority stock. 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 an appropriate adjustment made for interest accrued to March 31.
Other expenses.
Other expenses are charged to the accounts in the year in which the expenditure is incurred.
Depreciation.
Fixed assets, other than freehold land, are depreciated on a straight line basis estimated to write off the cost less residual value, over the economic life of each class of asset.
The following are the estimated lives of the major categories of fixed assets:
Buildings ..
Computer equipment
Office furniture and equipment and motor vehicles

Taxation—
Taxation charged against profits for the year is the estimated expense for the year. Tax allocation accounting has been adopted by the Bank for significant timing differences in respect of accrued investment income, depreciation, capital profits and losses, and amortisations of government and local authority stock.

1985 1984
$ $
5,455,113 4,711,643
37,882 45,586
22,850 14,850
2,570,917 2,244,958
151,908 140,974
86,007 129,655
255,886 109,323
401,235 290,563
$8,981,798 $7,687,552

1985 1985 1984
$ $ $
2,746,858 2,291,499
23,942 8,910
1,016,568 716,826
3,860,994 3,571,213
349,785 322,740
548,032 555,637
55,948 39,110
78,297 53,810

8,680,424 7,559,745
131,444 127,807
169,930 ..
$8,981,798 $7,687,552

1985 1984
$ $
40,000 40,000
371,925 250,563
$411,925 $290,563

401,235 290,563
10,690 ..
$290,563 $180,411

50–100 years
4 years
3–20 years