New Zealand Gazette – 1986 – No. 26

Page 914

✨ Financial Statements



914 THE NEW ZEALAND GAZETTE No. 26

Sale of Public Securities—

Profit or losses realised on sale of public securities are reflected in the statement of profit in equal annual instalments over the unexpired period to maturity or five years, whichever is the shorter.

Taxation—

The liability method of interperiod tax allocation has been applied primarily in respect of public security interest income.

Changes in Accounting Policies—

There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.

2. New Zealand Public Securities

Book, redemption and market value of these securities at 30 September were:

1985 1984
$000 $000
Book 72,157 82,577
Redemption 72,704 83,508
Market 61,294 75,660

3. Investment in Subsidiary

During the year the company acquired all of the issued capital of The Commercial Bank Savings Bank (N.Z.) Limited for a consideration equivalent to the value of the outstanding shares. Subsequently the book value of the investment was revalued to the net asset value of the investee company. Distributions by way of dividend of $3,985,000 have been offset against the book value of the investment in order to recognise the diminution in the value of its underlying net assets arising from the payment.

4. Shareholders’ Funds

1985 1984
$000 $000
Share Capital—
Authorised and issued capital 1 October 2,000,000 ordinary shares of $1 each 2,000 2,000
Increase of 12,400,000 ordinary shares of $1 each 12,400
Authorised and issued capital 30 September 14,400 2,000

The increase in share capital arose through capitalisation by way of bonus issue of retained earnings, general reserve and asset revaluation reserve.

General Reserve—

1985 1984
$000 $000
Balance 1 October 5,000 5,000
Capitalisation for bonus issue (5,000)
Balance 30 September — 5,000

Asset Revaluation Reserve—

1985
$000
Balance 1 October 1984 —
Revaluation of investment in subsidiary (see Note 3) 3,985
Capitalisation for bonus issue (3,985)
Balance 30 September 1985 —

5. Taxation

1985 1984
$000 $000
Taxation on current income 1,116 1,603
Less prior year's overprovision 14 —
Taxation expense 1,102 1,603

STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR ENDED 30 SEPTEMBER 1985

Funds were provided: 1985 1984
From Operations—net profit after taxation 1,378 1,959
Dividend from subsidiary 3,985 —
From Other Sources
Decrease in holdings of N.Z. Public Securities 10,420 10,907
Decrease in mortgages and loans 18,924 18,966
Taxation recovered 775 (5,819)
Decrease in accrued interest and other liabilities 1,757 —
36,464 26,783
Funds were applied to:
Increase in deposit with Westpac Banking Corporation 7,737 (943)
Repay depositors balances 22,770 28,525
Acquire the share capital The Commercial Bank Savings Bank (N.Z.) Ltd. 500 —
Decrease provision for taxation—Deferred 444 803
Current 1,428 (1,597)
Decrease loan from The Commercial Bank Savings Bank (N.Z.) Ltd. 3,985 —
36,464 26,783

The investment in the Commercial Bank Savings (N.Z.) Limited was financed by intercompany borrowing. No assets or liabilities other than share capital and intercompany indebtedness exist in that company.

Dated the 25th day of November 1985.

On behalf of the Board—

R. W. R. WHITE, Director.



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✨ LLM interpretation of page content

💰 Westpac Savings Bank Financial Statements (continued from previous page)

💰 Finance & Revenue
25 November 1985
Financial statements, Profit and loss, Balance sheet, Taxation, Investments, Shareholders' funds
  • R. W. R. White, Director