NEW ZEALAND GAZETTE

No. 166

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

1. STATEMENT OF ACCOUNTING POLICIES

The ASB Charitable Trust (‘the Trust’) was formed on 31 May 1989 through the creation of a trust deed by the ASB Bank Community Trust and a donation of $252,000,000.

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 Cash Flows
Cash comprises cash at bank and call deposits but does not include cash or deposits held by the Fund Managers.

Hedging Instruments
The Trust through its investment managers enters into hedging instruments such as futures, options and forward exchange contracts. These are converted to the New Zealand Dollar rate at balance date with all realised and unrealised gains and losses being recognised in income and expenditure for the year.

Depreciation
Depreciation is provided for the useful life of the assets. The rates used are:

• Buildings 2.5% straight line basis
• Vehicle, office equipment & furniture 20% diminishing value basis

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

Income from Fund Managers
Income from Fund Managers is recorded net of fund management expenses.

Donations
Donations are accounted for as they are distributed or committed to be distributed to eligible organisations as approved by the Trustees. 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
Expenses are shared jointly with the ASB Bank Community Trust. Whilst each Trust bears its own specific costs, the joint expenses are allocated between the Trusts on the basis of the number of applications processed by each.

Joint expense allocations were:

Fixed Assets
Fixed assets are valued at cost less accumulated depreciation.

Investment Properties
These are valued at market value. Movements in the valuation of investment properties are recorded in the Statement of Income and Expenditure. No provision for depreciation is made on these properties.

Foreign Currencies
All amounts denominated in foreign currencies are converted to New Zealand dollars at balance date and all realised and unrealised gains and losses are recognised in income and expenditure for the period.

Investments
Investments are stated at market value. Any unrealised gains or losses are recognised in income and expenditure for the period. Investment transactions are recorded by the Fund Managers on a settlement date basis. Unsettled transactions are disclosed in the Notes as commitments.

Reserves
The Investment Fluctuation Reserve consists of unrealised gains, which are recognised as income for the period. Transfers to all other Reserves from the Unallocated Surplus are made at the discretion of the Trustees. Transfers to the Capital Maintenance Reserve are based on the annual movement in the Consumer Price Index.

Taxation
The Trust has been accorded tax exempt status in New Zealand and Australia but is liable to taxation on investment income in some other overseas countries. Tax on overseas income is accounted for as a reduction of that income.

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

2. INVESTMENTS

Investments comprise

Held in New Zealand: 100%

These are managed in-house. Included in these are deposits, certain of which 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.

Investment Properties
836

Since the property was acquired during the current year a valuation as at 31 March 1993 has not been performed.

3. RESERVES

4. DONATIONS

For this year

For future years