New Zealand Gazette – 1985 – No. 215

Page 5051

✨ Financial Statements



21 NOVEMBER THE NEW ZEALAND GAZETTE 5051

Interest on Investments—

1985 $ 1984 $
From New Zealand Government stock 1,931,835 1,622,383
From local authorities 11,442 12,667
From mortgages and personal loans 3,734,840 3,399,092
From other sources 517,457 410,881
6,195,574 5,445,023

Income From Other Sources—

1985 $ 1984 $
Commission 276,737 113,458
Rents 23,118 23,343
299,855 136,831
$6,495,429 $5,581,854

Profit and Loss Appropriation Account for the Year Ended 21st March 1985

1985 $ 1984 $
Donations 310,102 20,000
Balance transferred to reserve fund 310,102 185,931
$310,102 $205,931

| Net profit after taxation | 309,451 | 205,931 |
| Capital Profit on sale of assets | 651 | — |
| | $301,102 | $205,931 |

Statement of Changes in Financial Position for Year Ended 31st March 1985

Funds were Received from—

Operations: 1985 $ 1984 $
Net profit after tax and donations 309,451 185,931
Adjustment for items not involving movement of funds:
Depreciation 208,809 155,782
Deferred Taxation 253,188 157,423
771,448 499,136

Repayment of Principal:

| Government securities | 5,432,942 | 1,000,000 |
| Local authority securities | 7,676 | 22,526 |
| Mortgages and personal loans | 9,662,974 | 8,517,635 |
| | 15,103,592 | 9,540,161 |

Increase in Liabilities:

| Increase in depositors balance | 4,292,699 | 2,785,247 |
| Increase in Working Capital | 953,232 | — |
| | 20,167,739 | 13,777,776 |

These Funds Were Applied to:

| Net Capital Expenditure:
| Fixed assets | 399,854 | 248,083 |

| New Investments in:
| Government securities | 8,054,750 | 2,612,026 |
| Local authority Securities | — | 641 |
| Mortgages and personal loans | 11,188,980 | 10,917,026 |
| | 19,243,730 | 13,529,693 |

| Decrease in Working Capital | 524,155 | — |
| | $20,167,739 | $13,777,776 |

Net Increase In Working Capital:

| Cash resources | (308117) | 948,178 |
| Interest accrued on investments | (130,379) | 100,813 |
| Debtors and prepayments | 10,855 | (54,274) |
| Sundry creditors | (58,283) | 48,192 |
| Interest accrued on investment accounts | (128,189) | 61,893 |
| | ($524,155) | $953,232 |

Notes of the Financial Statements for the Year Ended 31st March 1985

Statement of Accounting Policies—

(a) General Accounting Policies—The accounting policies recognised as appropriate for the measurement and reporting of results and financial position under the historic cost method of accounting have been adopted on a basis consistent with the previous year.

(b) Recognition of Income—The income earned is recorded on an accrual basis and includes the amortization of premiums and discounts on the purchase of Government and local authority stock. Interest on personal loans is calculated according to the Rule of 78.

(c) Expenditure—Interest on depositor’s accounts represents interest paid, credited or accrued for the financial year ended 31st March 1985. Other expenses, including computer development costs, are charged to the accounts in the year in which the expenditure is incurred.

(d) Fixed Assets and Depreciation—Fixed assets are valued at cost less accumulated depreciation. Depreciation has been charged using the straight-line method based on the economic life of the assets.

The current market value of land and buildings is $2,058,000.

(e) Taxation—Taxation charged against net profit is the estimated expense relating the result of the year. It includes an amount for taxation, the payment of which is deferred to future periods, because taxation practice differs from accounting policies in the treatment of:

(i) Interest accrued on investments.

(ii) Depreciation charges.

(iii) The amortization of profits and losses in respect of Government and local authority stock purchases and sales.



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✨ LLM interpretation of page content

💰 Westland Savings Bank Profit and Loss Account for the Year Ended 31st March 1985 (continued from previous page)

💰 Finance & Revenue
Profit and Loss, Interest, Administration Expenses, Depreciation, Taxation, Net Profit