18 SEPTEMBER THE NEW ZEALAND GAZETTE 3985

3. Changes in Accounting Policies:

The Bank has recorded the value of its land buildings at 90 percent of the independent registered valuation. This policy is now consistent with other Trusteebanks. The effect of changing from the previous basis of 100 percent has been a decrease in value of $5,892 rather than an increase of $18,011.

All other policies have been applied on bases consistent with those used in previous years.

NOTES TO THE ACCOUNTS

4. Government Stock:

Face value 24,650,240 28,280,240
Less unexpired discounts (40,393) (125,180)
Plus premiums paid but not yet written off 152,388 108,682
Book value 22,762,235 28,263,742
Market value $19,718,379 $24,589,833

The Government guarantee of depositors’ funds 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 Securities pursuant to the same Act was removed on 11 February 1985.

5. Associate Company:

Trusteebank Computer Ltd.:

The ordinary share investment has been shown using the equity accounting basis:

Ordinary shares $1 each 997,000 140,000
Accumulated profits to previous year 138,380 119,117
Prior period adjustment — (15,031)
Plus share of profit for year 153,943 —
Less share provision for taxation 79,132 34,294
1,210,191 278,380
Debentures (at cost) 313,750 563,000
$1,523,941 $841,380

On 15 March 1986 Trusteebank Canterbury and Trusteebank Wellington became shareholders, reducing this Bank’s shareholding to one-seventh.

6. Taxation:

Tax expenses in statement of profit and reserves 573,855 491,724
Less prior year taxation under provided (449) —
Less deferred tax adjustment for year (158,261) 55,981
Less provisional tax paid (548,154) (72,338)
Provision for taxation (refund due) ($133,009) $475,367

7. Deferred Taxation:

Balance brought forward 653,419 709,400
Deferred tax adjustment for year 158,261 (55,981)
Adjustment re change in tax rate 43,563 —
$855,243 $653,419

8. Revaluation Reserve:

Balance brought forward 562,465 428,552
Annual revaluation (5,892) 133,913
Less adjustment for buildings demolished during year (99,231) —
$457,342 $562,465

9. Fixed Assets:

Land 448,476 448,476 319,800
Buildings and improvements 976,674 804,930 724,849
Furniture and fittings 252,974 96,015 88,842
Vehicles 97,527 80,582 56,727
Office and computer equipment 1,329,525 625,108 342,880
$3,105,176 $970,756 $1,533,098

10. Commitments:

Property acquisition 2,314,000 108,000
Mortgages approved but not uplifted 851,052 1,383,353
Associated company:
— Debenture 37,000 290,000
— Additional share capital — 760,000
$3,202,052 $2,541,353