New Zealand Gazette – 1985 – No. 193

Page 4529

✨ Financial Statements and Notes



17 OCTOBER

THE NEW ZEALAND GAZETTE

4529

Working capital increases (decreases):

Cash resources .. .. .. .. .. .. .. .. .. .. 4,466,253
Accounts receivable .. .. .. .. .. .. .. .. .. (65,330)
Income accrued .. .. .. .. .. .. .. .. .. .. 1,004,306
Taxation .. .. .. .. .. .. .. .. .. .. .. 617,292
Accounts payable .. .. .. .. .. .. .. .. .. (559,025)
Interest accrued to depositors .. .. .. .. .. .. .. .. (770,723)

$4,692,773

G. M. REEVES, President.

P. D. MUNN, General Manager.

NOTES TO THE ACCOUNTS

A. Statement of Accounting Policies:

The measurement base adopted is that of historical cost with the exception of land and buildings which have been valued at 90 pecent of current valuation. Reliance is placed on the fact that the bank is a going concern.

Accrual accounting is used to match expenses and revenues.

The following particular policies which significantly affect the measurement of profit and of financial position have been applied:

Note 1: Depreciation:

All assets with the exception of land and buildings are recorded at cost less depreciation to date. Depreciation has been charged using the straight-line method based on the estimated economic life of assets. The following are the estimated lives of major asset categories:

Buildings .. .. .. .. .. .. 50–100 years
Furniture and fittings .. .. .. .. .. 10 years
Office equipment and plant .. .. .. .. 7–10 years
Security equipment .. .. .. .. .. 20 years
Computer equipment .. .. .. .. .. 7 years
Vehicles .. .. .. .. .. .. .. 5 years

Note 2: Government Stock:

Total discounts and premiums on Government stock securities are amortised over the term of the investment on a straight-line basis. The value of the stock in the balance sheet is shown at its cost price adjusted by amortised discount or premium to date.

Note 3: Personal Loans:

The Bank's policy is to add total interest due to the loan when advanced, and interest revenue is recognised on the basis of the "Rule of 78".

Note 4: Taxation:

(a) The provision for income tax charged in the revenue statement is the calculated tax liability in respect of the accounting profit after adjusting for permanent differences.
(b) The provision for deferred taxation arises from items of income and expenditure being included in taxation calculations in periods different from those in which they are dealt with in the financial accounts.

Note 5: Change in Accounting Policy:

There has been a change in accounting policy in that some fixed assets were previously depreciated on the diminishing value basis. It is not considered that this change will have any material effect on results or financial position.

B. Associate Company:

The Bank's investment in Trusteebank Computer Limited has been shown in the accounts according to the standard accounting practice adopted by the New Zealand Society of Accountants for an associate company.

The investment is made up as follows:

$
Debentures 563,000
Paid up shares 140,000
Share of accumulated profit brought forward 104,086
Plus share of profit for year .. .. .. .. 62,352
Less share of provision for taxation .. .. .. 28,058 34,294
Investment in Associate Company $841,380

C. Fixed Assets:

Cost or Revaluation $ 1985 Accumulated Depreciation $ Book Value $ 1984 Cost $ 1984 Accumulated Depreciation $ 1984 Book Value $
Land 1,048,152 ... 1,048,152 97,632 ... 97,632
Buildings 3,990,947 62,723 3,928,224 536,937 51,099 485,838
5,039,099 62,723 4,976,376 634,569 51,099 583,470
Furniture, fittings and alterations 1,581,936 644,760 937,176 995,853 535,552 460,301
Office and computer equipment 1,382,978 657,417 725,561 1,169,503 504,518 664,985
Motor vehicles 124,902 41,167 83,735 103,283 27,434 75,849
Capital work in progress 43,924 ... 43,924 14,266 ... 14,266
$8,172,839 $1,406,067 $6,766,772 $2,917,474 $1,118,603 $1,798,871

The latest Government or registered market valuation of land and buildings is $5,548,800. Land and buildings have been revalued as at 31 March 1985, to 90 percent of registered market valuation. The difference between this and book value of $2,517,430 has been transferred to a Property Revaluation Reserve.



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✨ LLM interpretation of page content

💰 Statement of Changes in Financial Position for the Year Ended 31 March 1985 (continued from previous page)

💰 Finance & Revenue
Financial Position, Working Capital, Cash Resources, Accounts Receivable, Taxation
  • G. M. Reeves, President
  • P. D. MUNN, General Manager

💰 Notes to the Accounts

💰 Finance & Revenue
Accounting Policies, Depreciation, Government Stock, Personal Loans, Taxation