New Zealand Gazette – 1986 – No. 155

Page 4190

✨ Financial Statements



THE NEW ZEALAND GAZETTE

No. 155

STATEMENT OF CHANGES IN FINANCIAL POSITION

Source of Funds— 1986 $ 1985 $
Profit after tax 3,900,838 2,383,878
Depreciation 470,351 398,990
Total funds from operations 4,371,189 2,782,868
From Other Sources—
Donation provision transferred 46,647 535
Increase in provision for donations 50,000 50,000
Depositors' funds 18,757,388 21,535,690
Deferred taxation (276,518) 162,391
Decrease in investments 8,337,029 —
Total source of funds 31,285,735 24,531,484
Application of Funds—
Net purchase of fixed assets 958,255 1,374,304
Investments — 1,933,827
Mortgages and personal loans and overdrafts (net of Housing Corporation supplemented mortgages) 3,726,917 10,074,633
Trustee bank visa outstanding 143,621 814,872
Provision for donations 250,000 200,000
Increase in working capital 26,206,942 10,133,848
Total application of funds 31,285,735 24,531,484
Increase/Decrease in Working Capital—
Cash resources 26,398,349 10,239,412
Debtors 418,516 (2,101)
Creditors (575,296) 219,667
Taxation 618,159 (13,765)
Accrued interest on investments 1,239,927 166,635
Accrued interest on investment accounts (1,892,083) (476,020)
Total increase in working capital 26,206,942 10,133,848

NOTES TO THE ACCOUNTS

1. Statement of Accounting Policies—

General Accounting Policies:

  • the measurement base adopted is that of historical cost. 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 accounting policies which significantly affect the measurement of the Bank's profit and financial position have been applied on a basis consistent with previous years.

Depreciation—

Depreciable fixed assets are depreciated on a straight line basis at rates estimated to write off the cost, less residual value, over the useful life of each class of asset. The principle rates in use are:

  • Buildings: 1 percent and 2½ percent
  • Office equipment, fixtures and fittings: 10 percent and 20 percent
  • Computer equipment: 12.5 percent

New Zealand Government Stock—

New Zealand Government stock is recorded at par value less discount on acquisition which is amortised over the term of the investment on a straight line basis. The stock is regarded as a long term investment and under normal circumstances is held to maturity and redeemed at face value.

Periodically the stock is sold to improve interest yield. The realisable value of the stock fluctuates with movement in the rate of interest and it is customary for such fluctuations to be disregarded in the accounts of the long-term institutional investor.

2. Term Investment Accounts—

1986 $ 1985 $
Under 1 year 58,876,679 36,848,972
1-2 years 37,316,665 38,198,914
2-3 years 6,808,095 9,197,225
3-5 years 7,185,754 8,228,869
$110,187,194 $92,473,980

3. Taxation—

The charge for income tax is the amount of tax liability in respect of the accounting profit for the year.

The deferred tax account has been established using the liability method to record the tax effect of timing differences between accounting and tax profits. The major differences relate to depreciation and accrued income.

Provision for Taxation—

1986 $ 1985 $
Balance 518,866 505,101
Total tax provided in accounts 1,410,000 1,900,000
1,928,866 2,405,101
Plus timing differences transferred from deferred tax 276,518 (162,391)
2,205,384 2,242,710
Less Tax paid 2,304,677 1,723,844
Tax Refundable $(99,293) $518,866


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✨ LLM interpretation of page content

💰 Statement of Changes in Financial Position

💰 Finance & Revenue
Financial Position, Funds, Operations, Investments, Working Capital

💰 Notes to the Accounts

💰 Finance & Revenue
Accounting Policies, Depreciation, Government Stock, Investment Accounts, Taxation