Financial Statements




11 MAY NEW ZEALAND GAZETTE 1895

values, in the majority of cases these securities are held to, or close to maturity dates when they would be redeemed at face value. Accordingly, no provision is made for any difference between book value and market value of individual securities.

Sale of Public Securities—

Profit or losses realised on sale of public securities are reflected in the profit and loss statement in equal annual instalments over the unexpired period to maturity of the securities sold or 5 years, whichever is the shorter.

Taxation—

The company adopts tax effect accounting whereby income tax expense is calculated on pre-tax accounting profits after adjustment for permanent taxation differences. The tax effect of timing differences which occur where items are included or allowed for income tax purposes in a period different to that for accounting is shown in provision for deferred income tax and future income tax benefits, as applicable, at current taxation rates.

The liability method of inter-period allocation of income tax has been applied.

Changes in Accounting Policies—

There have been no significant changes in the accounting policies applied during the period covered by these financial statements. All policies have been applied on bases consistent with those used in previous years.

2. Extraordinary Items

1988 1987
$000 $000
Increase in provision for deferred taxation arising from change in company rates - 2

3. New Zealand Public Securities

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

1988 1987
$000 $000
Book - 53,735
Redemption - 53,860
Market - 51,868

4. Share Capital

1988 1987
$000 $000
Authorised Capital—
14,400,000 ordinary shares of $1.00 each 14,400 14,400
Issued Capital—
12,400,000 ordinary shares of $1.00 each 12,400 12,400
2,000,000 ordinary shares of $1.00 each paid to 30 cents 600 600
13,000 13,000

5. Contingent Liability

No contingent liabilities exist (1987, $Nil).

6. Directors’ Emoluments

No emoluments are paid to the directors of the company.

Statement of Cash Flows For the Year Ended 30 September 1988

1988 1987
$000 $000

Cash Flows From Operating Activities:

Cash was provided from:
| Interest income | 14,844 | 19,570 |

Cash was applied to:
| Interest expense | 11,218 | 14,682 |
| Management and operating expenses | 1,177 | 1,579 |
| Auditors’ remuneration | 9 | 7 |
| Taxes paid | 3,771 | (529) |

| Net cash flow from operations | (1,331) | 3,831 |

Cash Flows From Investing Activities:

Cash was provided from:
| Proceeds from maturity of Government securities | 53,815 | 15,294 |
| Mortgage and loan repayments | 13,036 | 16,602 |
| Proceeds from sale of subsidiary | - | 500 |

Cash was applied to:
| Repayment of loan to subsidiary | - | 500 |
| Repayment depositors balances | 20,064 | 20,098 |

| Net cash flow from investing | 46,787 | 11,798 |

Cash Flows From Financing Activities:

Cash was provided from: | - | - |
Cash was applied to: | - | - |

| Net cash flow from financing | - | - |

| Net increase in cash | 45,456 | 15,629 |



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💰 Westpac Savings Bank Financial Statements, 30 September 1988 (continued from previous page)

💰 Finance & Revenue
10 November 1988
Financial Statements, Profit and Loss, Balance Sheet, Westpac Savings Bank