10 OCTOBER
THE NEW ZEALAND GAZETTE
4429

From other sources—
Increase in depositors funds:
— Savings accounts .................................................. (734,623)
— Current accounts ................................................. 2,693,381
— Investment accounts ........................................... 8,326,994
10,285,752

Decrease in investments:
— Local authority stock ........................................ 110,000
Tax refund received .............................................. 261,765
$11,462,951

Funds were applied to—
Increase in investments:
— Short-term deposits ........................................ 1,450,000
— Government stock ............................................ 2,437,751
— Personal loans to depositors ................................ 759,095
— Mortgage advances to depositors .......................... 4,522,625
— Overdraft advances to depositors .......................... 458,605
— Associate company investment ............................. 489,263
10,117,339
Nett increase in fixed assets ................................... 133,515
Donations ........................................................ 32,600
Increase in working capital ..................................... 1,179,497
$11,462,951

Increase/(Decrease) in Working Capital:
Cash and bank .................................................... 1,357,347
Receivables ....................................................... 543,108
Payables .......................................................... (301,572)
Provision for taxation ........................................... (419,386)
$1,179,497

NOTES TO THE ACCOUNTS

1. Statement of accounting policies:
   General Accounting Policies
   The measurement base adopted is that of historical cost modified by the revaluation of land and buildings. Reliance is placed on the fact that the Bank is a going concern.
   Accrual accounting is used to match expenses and revenue.

Particular Accounting Policies
(a) Sundry Debtors are shown at expected realisable value.
(b) Government Stock and Local Authority Stock are shown at face value, adjusted by any premium paid or discount received, which is amortized or credited to revenue over the term of the investment.
(c) Investments in Associated Companies are shown at cost plus a share of increases in net assets since the date of acquisition of shares.
(d) Land and buildings are shown at a Registered Valuers current valuation less accumulated depreciation. All other Fixed Assets are shown at cost less accumulated depreciation.
(e) Depreciation is provided on a straight line basis which will write off the cost and revaluation over their estimated useful lives. The useful lives are estimated as follows:
Buildings ................ 10 to 50 years
Office equipment ....... 5 to 10 years
Furniture ............... 5 to 10 years
Vehicles ................. 5 years
(f) Interest on Personal Loans is added to the principal at the commencement of the loan, and this amount is brought into revenue during the appropriate financial year by applying the “Rule of 78”. The Balance Sheet figure is net of unrecognized interest income.
(g) Interest on Investment Accounts is accrued at balance date at the full rate payable on the assumption that all investment accounts will go through to maturity.
(h) Taxation expense charged in the Profit and Loss Account recognises the effect of both current and deferred taxation.

Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.

2. Government Stock:

                                1985         1984
                                $            $

   Face value ......................... 28,280,240 26,542,660
   Less unexpired discounts ........... (125,180) (737,015)
   Plus premiums paid but not yet written off 108,682 40,346
   Book value ......................... 28,263,742 25,825,991
   Market value ....................... $24,589,833 $23,966,000