3122 THE NEW ZEALAND GAZETTE No. 112

Investments—

New Zealand Government Securities . . . . . . . . . . . . . . . . . . . . . . . 8 92,685 105,415
Rural bank securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 0
Local authority securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1,253 430
Mortgages of real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127,281 110,990
Personal loans (net of interest) . . . . . . . . . . . . . . . . . . . . . . . . 21,328 21,946
Overdrafts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,139 3,047
Trustebank Visa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,060 2,916
Associated company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,292 841

                                                                                 254,538     254,585

Fixed Assets—

Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604 620
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,957 4,557
Office furniture, plant, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,520 2,278

                                                                                  9,081       7,455
                                                                                 $359,198    $309,882

The statement of accounting policies and the notes are to be read in conjunction with the financial statements.

R. T. MAHUTA, President.
S. R. McROBIE, General Manager.

STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 1986

Funds were provided from—

Net profit after taxation and abnormal items . . . . . . . . . . . . . . . . . . . 3,277
Adjustment for items not involving movement of funds . . . . . . . . . . . . . 2,241

Increases—
Depositors’ funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,518
Sundry Creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,728
Decreases—Taxation Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607 4,262
Repayments—
Mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,654
Personal loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,304
Local authority securities . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
New Zealand Government stock . . . . . . . . . . . . . . . . . . . . . . . . 200
Sales—New Zealand Government stock . . . . . . . . . . . . . . . . . . . . . 35,665
Fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

                                                                                 $125,653

Funds Were Used For:

Mortgage advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,945
New Zealand Government stock purchases . . . . . . . . . . . . . . . . . . . 44,628
Rural Bank securities purchases . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Local authority securities purchases . . . . . . . . . . . . . . . . . . . . . . 863
Purchase of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,081
Increase in sundry debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . 336
Personal loans, overdrafts, Visa advances . . . . . . . . . . . . . . . . . . 12,422
Advances to associated company . . . . . . . . . . . . . . . . . . . . . . . . . 1,451
Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
Increase in cash and deposits . . . . . . . . . . . . . . . . . . . . . . . . . . 27,126
Deferred taxation decrease . . . . . . . . . . . . . . . . . . . . . . . . . . . . 858
Repayment of commitment to repurchase . . . . . . . . . . . . . . . . . . . .
Repayment of deposits with other Trustee banks . . . . . . . . . . . . . . . 2,000
Reduction in public sector liabilities . . . . . . . . . . . . . . . . . . . . . 193

                                                                                 $125,653

NOTES TO THE ACCOUNTS

1. Statement of Accounting Policies—
   General Accounting Policies:
   As recommended by the New Zealand Society of Accountants:
   (i) The measurement base adopted is that of historical cost modified by the revaluation of certain assets. Reliance is placed on the fact that the bank is a going concern.
   (ii) Interest on investments is accrued to balance date on a daily basis at the appropriate rate of interest.

Particular Accounting Policies:
(a) Revenue and Expense Recognition
(i) Personal loans. The bank’s policy is to add interest to the advance at the commencement of the loan. The “rule of 78” method of accounting for personal loan income is used to apportion the income between accounting periods.
(ii) Losses associated with dealing in securities have been charged to the current year’s Statement of Profit and Reserves.
(iii) The charge for income tax is the amount of tax liability in respect of the accounting profit for the current year. Taxation charges which are expected to be payable in accounting periods subsequent to the 1986/87 financial year are included under the heading “Provision for Deferred Taxation”.

Deferred taxation arises out of timing differences resulting from differing treatment for accounting and taxation purposes of Government stock transactions, interest income and depreciation on fixed assets.