23 JUNE NEW ZEALAND GAZETTE 2103

                                            1994 $      1993 $

Payments to suppliers and employees ... (160,252) (178,104)
Payments to trustees ... (72,008) (70,509)
Brokerage ... (256,378) 0
Donations to the community ... (3,123,789) (2,430,859)
1,417,812 613,773

Investing—
Sale of Government securities ... 500,000 0
Sale of local authority securities ... 100,000 0
Purchase of Government securities ... (632,861) 0
Investment in local authorities securities ... 21,000 (300,624)
Sale of shares ... 21,000,000 139,642
Term deposit ... (22,876,948) 108,838
Community social loans ... 149,067 (344,684)
Purchase of fixed assets ... 0 (8,135)

Increase in cash ... (1,760,742) (404,963)
Cash at beginning of year ... (342,930) 208,810
Cash at end of year ... $(42,043) $300,887

● Represented by:
Call account ... 0 391,037
Current account ... (42,043) (90,150)
$(42,043) $300,887

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

Notes to the Financial Statement for the Year Ended 31 March 1994

1. Statement of Accounting Policies

General Accounting Policies
The following general accounting policies have been adopted in the preparation of the financial statements.

(i) The measurement base adopted is that of historical cost, except for the revaluation of investments. Reliance is placed on the fact that the trust is a going concern.

(ii) The matching of revenue earned and expenses incurred using accrual accounting concepts.

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.

Investments—Investments are shown at market value. Unrealised gains or losses from holding investments are transferred directly to the revaluation reserve. Realised gains or losses on subsequent disposal of investments are transferred from the revaluation reserve direct to the capital fund.

Donations—Donations are accounted for on an accruals basis.

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

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—The trust now values investments at market value and records the movement directly to the revaluation reserve, and accounts for donations on an accrual basis. Previously Trust Bank New Zealand Limited shares were valued at cost. Unrealised gains or losses on other investments were recorded in the income and expenditure statement. Donations were accounted for on a cash basis. All other policies have been applied on bases consistent with those used in the previous year. The net effect of these changes in policy has been to increase the surplus for the current year by $224,951,819 (1993 increase of $78,334).

2. Investments

                Face Value $    Market Value $  Cost Price $    1993 $

   Fixed interest investments—
   Government securities ... 984,000 1,056,351 1,025,535 917,064