3382
NEW ZEALAND GAZETTE
No. 166

Notes to the Financial Statements for the year ended 31 March 1993

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. As at 31 March 1988 the net tangible asset backing of those 60 million shares was $147,655,000. In 1989 45 million shares were sold to the Commonwealth Bank of Australia for $252,000,000 which was then donated to the ASB Charitable Trust.

GENERAL ACCOUNTING POLICIES
The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Reliance is placed on the fact that the Trust is a going concern. Accrual accounting is used to match income and expenditure.

PARTICULAR ACCOUNTING POLICIES

Bank
Bank is stated as the balance in the bank account rather than the balance as per the cash book.

Statement of Cashflows
Cash comprises cash at bank and call deposits.

Dividends
Dividends are recognised as income when they are received by the Trust, and include imputation tax credits if any.

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

Expenses
Some expenses are shared jointly with the ASB Charitable Trust. Whilst each Trust bears its own specific costs, the joint expenses are allocated between each Trust on the basis of the number of applications processed by each.

Joint expense allocations were:

	1993	1992
This Trust	40%	40%
ASB Charitable Trust	60%	60%

Investments
Investments in shares are valued at the net tangible asset backing as disclosed in the latest published accounts. Any revaluation difference is transferred to an Investment Revaluation Reserve.

Reserves
The Investment Fluctuation Reserve consists of unrealised gains for the period which are recognised as income. The Investment Revaluation Reserve reflects the increase in the net tangible asset value of the shareholding in ASB Bank Ltd. Transfers to other Reserves from the Unallocated Surplus are made at the discretion of the Trustees.

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

Changes in Accounting Policies
There have not been any material changes in accounting policy during this accounting period.

INCOME

2. Dividends

	1993	1992
Cash Received	3,987	3,375
Imputation Tax Credit Received	1,964	1,662
	5,951	5,037

Other Investments

	1993	1992
Interest Received	226	212
Investment Profit Realised	(13)	--
Investment Loss Unrealised	218	212
Investment Profit Unrealised	39	--
	257	212

TAXATION

3.

	1993	1992
Surplus before Taxation	5,762	4,840
Add: Non-deductible Expenditure	360	388
	6,122	5,228
Taxation Charge @ 33%	2,020	1,725
Over provision	(14)	(1)
	2,006	1,724

Taxation Charge Comprises

	1993	1992
Tax charge on other activities	42	62
Imputation tax credit	1,964	1,662
	2,006	1,724

4. INVESTMENTS

Shares in ASB Bank Limited

	1993	1992
Balances as at 1 April	58,513	54,698
Increase in Net Tangible Assets for the year	5,898	3,815
Balance as at 31 March	64,411	58,513

The increase in Net Tangible Assets is based on unaudited accounts as at 31 December 1992.

Other Investments
These consist of securities & deposits managed in-house.

Investments Comprise

	1993	1992
Call Deposits	100	--
Term Deposits	3,479	2,550
Bonds	3,579	2,550
Held in New Zealand	100%	100%

Certain of the Trust's deposits are subject to a right of set off under the terms of the Trust's banking agreement. There has been no set off applied in the presentation of these accounts.

5. DONATIONS

For this year

	1993	1992
Committed and disbursed	1,982	1,951
Committed but not yet disbursed	1,560	918
	3,542	2,869

For future years
Committed but not yet disbursed
(These are not shown on the balance sheet)
Payable in the years 1 April 1992 to 31 March 1993

	1993	1992
	--	15
	3,542	2,884

Committed but not yet disbursed

	1993	1992
Committed in previous years	231	144
Committed this year	1,560	918
	1,791	1,062

6. RESERVES

Investment Revaluation Reserve

	1993	1992
Balance as at 1 April	14,192	10,378
Increase in value of ASB Bank Ltd shares during the year	5,898	3,814
Balance as at 31 March	20,090	14,192

Donations Reserve

	1993	1992
Balance as at 1 April	--	1,300
Transferred to General Reserve	--	(1,300)
Balance as at 31 March	--	--

Investment Fluctuation Reserve

	1993	1992
Balance as at 1 April	--	--
Unrealised Gains	39	--
Balance as at 31 March	39	--

General Reserve

	1993	1992
Balance as at 1 April	1,300	--
Transferred from Donations Reserve	--	1,300
Allocation from surplus for the year	200	--
Balance as at 31 March	1,500	1,300

7. TRUST CAPITAL

	1993	1992
Balance as at 1 April	44,320	44,320
Balance as at 31 March	44,320	44,320

REPORT OF THE AUDITORS TO THE TRUSTEES OF THE ASB BANK COMMUNITY TRUST

KPMG Peat Marwick - Chartered Accountants

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, that the balance sheet, statement of income and expenditure and statement of cashflows are properly drawn up and give, on an historical cost basis, adjusted by the revaluation of certain assets, a true and fair view of the financial position of the Trust as at 31 March 1993 and its results and cashflows for the year ended on that date.

AUCKLAND

CHARTERED ACCOUNTANTS

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