1882

NEW ZEALAND GAZETTE

No. 98

Specific Accounting Policies

Depreciation—Depreciation has been charged in the financial statements using rates which will write off the cost of assets less their estimated residual value over their estimated economic lives. The depreciation rates used are:

Plant and equipment .. .. .. 20 percent cp
Motor vehicles .. .. .. 20 percent cp
Computer .. .. .. 20 percent cp

Fixed Assets—Fixed assets are recorded at cost less accumulated depreciation.

Dividend Income—Dividend income from Trust Bank New Zealand Limited is included in the income and expenditure statement when it is received.

Donations—Donations are generally included in the income and expenditure statement when paid. Exceptions are made where a one-off commitment is to be paid soon after balance date, and its funding size warrants disclosure in the current year’s results.

Investments—Shares held in Trust Bank New Zealand Limited are stated at cost. Government and local authorities securities are shown at market value.

Taxation—For taxation purposes the trust is deemed to be a charitable organisation. Its income is not subject to taxation.

Goods and Services Tax—The trust is not registered for G.S.T. purposes and therefore the financial statements have been prepared on a G.S.T. inclusive basis.

Changes in Accounting Policies—There have been no changes in accounting policy. All policies have been applied on bases consistent with those used in the previous year.

2. Investments

Shares in Trust Bank New Zealand Limited .. .. .. .. .. .. .. .. .. $56,235,000 $56,235,000
32 500 000 ordinary shares of $1 each, fully paid, being 32.5 percent of the total issued capital.

The trust has not equity accounted for this investment, as recommended by SSAP8 issued by the New Zealand Society of Accountants, as the trust does not have significant influence over Trust Bank New Zealand Limited, at this time.

Shares in Mount Cavendish Gondola Co Limited .. .. .. .. .. .. .. 0 130,000
130 000 ordinary shares of $1 each, fully paid.

3. Donations

The names of persons and organisations to whom distributions of income have been made by the trust under section 21 of the Trustee Banks Restructuring Act 1988 during the financial year and the amounts distributed are shown in the appendix to the financial statements.

Total donations paid in the year ended 31 March 1993 .. .. .. .. $2,441,505 $2,449,999
Further committed donations in the year ended 31 March 1993 .. .. .. 230,000 0

$2,671,505 $2,449,999

Future donation commitments as at 31 March 1993 .. .. .. .. .. 740,200 1,336,849

4. Capital Investment Commitments

Saxton field development (due 1992–93) (by way of a community trust social loan) .. .. 0 250,000

5. Fixed Assets

                        Cost      Accumulated      1993 Book      1992 Book
                        $         Depreciation   Value        Value
                        $          $             $

Plant and equipment .. .. .. 699 198 501 641
Computer .. .. .. .. .. 8,135 1,627 6,508 8,135
Motor vehicles .. .. .. .. 18,500 6,172 12,328 16,028

                        $27,334   $7,997        $19,337      $24,804

6. Segmental Reporting

The trust operates as a charitable trust in the Canterbury, Marlborough and Nelson areas.

7. Trust Bank Community Trusts’ Disaster Relief Fund

Detailed below is the trust’s share of the disaster relief fund which was established by way of a donation in the 1990 financial year. Accordingly this fund is not reflected in the financial statements of the trust.