New Zealand Gazette – 1985 – No. 168

Page 3989

✨ Financial Statements and Notes



12 SEPTEMBER THE NEW ZEALAND GAZETTE 3989

Valuation of Assets—Current Assets and Investments—

All current assets and investments are shown at cost with the exception of government and local authority stock. Government and local authority stocks are regarded as long term investments and are redeemable at maturity at their face value. These stocks are valued at cost, adjusted by the amortisation of the discount or premium on purchase calculated on a straight line basis over the term of the stock. The discount or premium is calculated after adjusting for interest accrued in the purchase price.

The realisable value of fixed interest securities fluctuates with movement in market yields and it is customary for such fluctuations to be disregarded in the reporting of the results of the long term institutional investor.

Fixed Assets—

Fixed assets are shown at cost less accumulated depreciation.

Changes in Accounting Policies—

1.1 Amortisation of discounts on Government stock.

The accounting treatment of discounts and premiums arising on the purchase of government stocks has been changed to amortise those discounts and premiums over the term of the stock. Previously discounts and premiums arising on the purchase of government stocks weren’t recognised in the revenue account until they were sold. The effect of this change in accounting policy is to increase this year’s profit by $169,930.

1.2 Depreciation of fixed assets.

Fixed assets other than freehold land have been depreciated on a straight line basis. Previously fixed assets have been depreciated at depreciation rates set by the Inland Revenue Department. The effect of this change in depreciation method has not materially affected the depreciation charge for the year.

NOTE 2: Government and Local Authority Stock:

Government Local Authority
1985 1984 1985 1984
Face value at 31 March 27,566,000 22,361,500 295,000 120,000
Less unamortised premiums and discounts 1,144,600 486,198 .. ..
Book value 26,421,400 21,875,302 295,000 120,000
Cost price 26,219,097 21,850,216 295,000 120,000
Market value 23,383,394 22,391,588 264,505 131,918

The Government Guarantee of Depositors’ Fund including accrued interest in terms of section 44 of The Trustee Banks Act 1983 and subsequent amendments was in force at balance date and continues to remain in force. However, the requirement to hold New Zealand Government Stocks pursuant to the same Act was removed on February 11, 1985.

NOTE 3: Fixed Assets:

Cost $ Accumulated Depreciation $ Book Value 1985 $ Book Value 1984 $
Land 136,438 .. 136,438 134,973
Buildings 595,937 55,969 537,968 485,670
Furniture and equipment, computers and motor vehicles 1,252,406 661,845 590,561 550,368
Total 1985 $1,982,781 $717,814 $1,264,967 $1,171,011
Total 1984 $1,735,169 $564,158 $1,171,011 ..

NOTE 4: Commitments:

Lending commitments approved but not advanced

1985 1984
$2,404,050 $1,081,450

STATEMENT OF SOURCE AND APPLICATION OF FUNDS

1985 $ 1984 $
Funds were provided from—
Depositors 8,649,612 6,927,501
Operations—
Profit after taxation 401,235 290,563
Depreciation 153,857 135,718
Prior year taxation refund 10,690 ..
Less grants paid 9,215,394 7,353,782
40,000 40,000
Increase in other liabilities and taxation provisions 9,175,394 7,313,782
551,425 407,761
$9,726,819 $7,721,543
These funds were invested in mortgages—new advances 7,318,932 4,760,840
Less repayments 4,747,490 3,473,200
2,571,442 1,287,640
Government stock and local authority stock 4,721,098 2,315,223
Personal loans and other investments 1,168,488 2,371,627
Fixed assets 8,461,028 5,974,490
Current assets 247,813 306,361
1,017,978 1,440,692
$9,726,819 $7,721,543


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✨ LLM interpretation of page content

💰 TrusteeBank South Canterbury Notes to Financial Statements (continued from previous page)

💰 Finance & Revenue
Accounting Policies, Income Recognition, Depreciation, Taxation