30 AUGUST

NEW ZEALAND GAZETTE

3193

ASB BANK COMMUNITY TRUST

Statement of Income and Expenditure

FOR THE YEAR ENDED 31 MARCH, 1990

| EXPENDITURE | | | |
| Audit | 11 | — | — |
| Depreciation | 9 | — | 3 |
| Interest | 16 | — | 7 |
| Legal | 3 | — | — |
| Occupancy | 9 | — | — |
| Other Operating | 41 | — | 4 |
| Staff | 113 | — | 49 |
| Trustees: Fees | 68 | — | 58 |
| Expenses | 13 | 329 | 127 |
| | | 329 | 127 |
| Surplus before Taxation and Extraordinary Item | 2 | 5,782 | 446 |
| Taxation | | 75 | 51 |
| | | 5,707 | 395 |
| Extraordinary Item | 3 | 118,824 | — |
| Surplus for Allocation | | 124,531 | 395 |

| DISTRIBUTIONS | | | |
| Donations | 5,198| — | — |
| ASB Charitable Trust | 118,824 | — |
| Undistributed Surplus for the Period | 509 | 57 |
| Undistributed Surplus Brought Forward | 57 | — |
| Undistributed Surplus Carried Forward | 566 | 57 |

The attached notes form part of and are to be read in conjunction with these financial statements.

Statement of Cash Flows

FOR THE YEAR ENDED 31 MARCH, 1990

| CASH FLOWS FROM INVESTING ACTIVITIES | | |
| Cash was provided from: | | |
| Dividends Received | 5,865 | 539 |
| Interest Received on Deposits | 249 | 30 |
| Cash was applied to: | | |
| Cash Outflow for Office Equipment etc | (317) | (1) |
| Net Cash Flows from Investing Activities | 5,797 | 568 |

| CASH FLOWS FROM FINANCING ACTIVITIES | | |
| Cash was provided from: | | |
| Proceeds from sale of ASB shares | 252,000 | — |
| Cash was applied to: | | |
| Donation to ASB Charitable Trust | (252,000) | — |
| Net Cash Flows from Financing Activities | — | — |
| Net Increase in Cash Held | 801 | 324 |
| Add Opening Cash Brought Forward | 24 | — |
| Ending Cash Carried Forward | 1,125 | 324 |

Balance Sheet

AS AT 31 MARCH, 1990

| LIABILITIES | | | |
| Overdrafts (unsecured) | 25 | — | 44 |
| Creditors | 57 | 2 | — |
| Committed Donations | 783 | 51 | 220 |
| Taxation | 49 | — | — |
| | | 867 | 264 |
| TOTAL LIABILITIES| | 50,628 | 177,656 |

| ASSETS | | | |
| Investments | 5 | 49,147 | 177,282 |
| Fixed Assets | 6 | 312 | 1 |
| ASB Charitable Trust | | — | — |
| Short Term Deposits | 9 | 1,150 | — |
| Debtors | 10 | 10 | 368 |
| | | 50,619 | 177,656 |

TRUSTEE Judith O. Basset
TRUSTEE Wair G. Ward-Holmes

The attached notes form part of and are to be read in conjunction with these financial statements.

Notes to the Financial Statements

FOR THE YEAR ENDED 31 MARCH, 1990.

1. STATEMENT OF ACCOUNTING POLICIES

The ASB Bank Community Trust ("the Trust") was formed on 30 May 1988 through the creation of a trust deed in compliance with the Trustee Banks Restructuring Act 1988. Under the terms of the trust deed the Trust was settled with 60 million $1 fully paid ordinary shares in ASB Bank Limited representing 100% of the issued capital. Subsequently 45 million shares were sold.

GENERAL ACCOUNTING POLICIES

The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Balance sheet items are brought to account on this basis, and the accrual basis of accounting is used to match income and expenditure.

PARTICULAR ACCOUNTING POLICIES

Investments

Investments are valued at the net tangible asset backing as disclosed in the latest published accounts. Any increase in value is transferred to an investment revaluation reserve.

Fixed Assets

Fixed assets are valued at cost less accumulated depreciation.

Depreciation

Office equipment and furniture are depreciated on a diminishing value basis.

Taxation

Taxation includes both current and deferred tax. (Deferred tax is calculated using the liability method.)

Dividends

Dividends are recognised as income when they are received by the Trust.

Donations

Donations are accounted for when they are distributed or committed to be distributed to eligible organisations as approved by the Trustees provided these donations are payable over a number of accounting periods the future donations payable are accounted for in the year in which they are paid.

Friendly investments were included at their value on the date they were received pursuant to the Trustee Banks Restructuring Act 1988. The method of valuing investments has been changed and they are now included at their net tangible asset backing as disclosed in the latest available published accounts of the investee company. The Trustees consider that this method more fairly reflects the underlying value of the investment.

The effect of the change in valuation method has been to increase the value of the investment in 1990 by $311,728,000 and to reduce the capital gain on sale by $367,560,000 in 1990.

2. TAXATION

3. EXTRAORDINARY ITEM

The extraordinary item represents the profit on sale of 45 million shares in ASB Bank Limited to the Commonwealth Bank of Australia.

Gross sale proceeds 252,000
Less: Book value of investment 132,962
Less: Deposit Expenses 214
Extraordinary item 118,824

4. DISTRIBUTION TO ASB CHARITABLE TRUST

Free Income 118,824
From Capital 132,962
251,786

5. INVESTMENT

Book value of shares in ASB Bank Limited:
At beginning of year 177,282
Investment revaluation 4,827
At end of year 49,147

6. FIXED ASSETS

7. COMMITMENTS

In addition to the committed donations there is a future liability of $1,336,200 for donations which are payable in the years to April 1990 to 1 March 1992. These are not shown on the Balance Sheet.

Report of the Auditors to the Trustees of ASB BANK COMMUNITY TRUST

We have examined the accompanying balance sheet, statement of income and expenditure and statement of cashflows and have obtained all the information and explanations we have required. We are of the opinion that proper accounting records have been kept by the Trust.

We are of the opinion that the balance sheet, statement of income and expenditure and statement of cashflows are properly drawn up and give a true and fair view of the financial position of the Trust as at 31 March 1990 and its results and cashflows for the ten months ended on that date.

TRUSTEE Judith O. Basset
TRUSTEE Wair G. Ward-Holmes

June 8 1990

KPMG Peat Marwick
CHARTERED ACCOUNTANTS
AUCKLAND