2364

NEW ZEALAND GAZETTE

No. 73

Interest on investments ........................................... 112,692 93,960
1,366,971 909,063
Cash was applied to:
Community payments ..................................... 536,585 520,740
Trustees and employees ................................. 57,663 21,885
Suppliers of other goods and services .................. 34,837 22,901
Net operating cash flows ................................... 737,886 343,536
Cash flows from investing activities—
Cash was applied to:
Sale of investments .................................. — 100,000
Investment in Government stock ....................... (554,475) (749,092)
Purchase of fixed assets ............................. (6,188) —
Net investing cash flows ................................. (560,663) (649,092)
Net increase (decrease) in cash held ...................... 177,223 (305,556)
Add cash at 1 April ...................................... 367,199 672,755
Cash at 31 March ......................................... $544,422 $367,199

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

Notes to the Financial Statements for the Period Ended 31 March 1994

1. Statement of Accounting Policies

General Accounting Policies

The general accounting policies adopted in the preparation of these financial statements are:

• The measurement base adopted is the historical cost basis modified by the revaluation of certain assets.
• Reliance has been placed on the fact that the entity is a going concern.
• The matching of revenues earned and expenses incurred using accrual accounting except as disclosed separate below.

Particular Accounting Policies

The following are the particular accounting policies which have a material effect on the measurement of results and financial position:

• Dividend income from Trust Bank New Zealand Limited is included in the income and expenditure account when it is received.
• Donations made are included in the income and expenditure account when paid.
• Depreciation is charged to write off the cost of fixed assets over their expected economic lives using the straightline method:
  Computer equipment 3 years.
• Shares held in Trust Bank New Zealand Limited are stated at initial public offer value.
• Government Securities are purchased primarily with the intention of holding them until maturity. They are valued on a yield to maturity basis.
• Income tax is not provided as the trust has charitable status for tax purposes therefore its income is not subject to taxation.
• G.S.T. inclusive accounting has been adopted as the trust is not registered for G.S.T. purposes.

Changes in Accounting Policies

The shares in Trust Bank New Zealand Limited, previously shown at their cost of $11,810,000, have been revalued to their initial public offer value of $2.10 per share. The resultant increase in value has been shown separately under trust funds as a revaluation reserve of $61,270,000 giving a total value of $73,080,000.

The valuation of Government securities has been changed to reflect the true yield to maturity. The effect of this change on the current year is not material.

All other policies have been consistently applied.

2. Dividends

Dividends received from Trust Bank New Zealand Limited—
Final dividend for year ended 31 March 1993 ................. 732,279 461,970
Interim dividend for year ended 31 March 1994 .............. 522,000 353,133
$1,254,279 $815,103