2434

NEW ZEALAND GAZETTE

No. 75

Add opening cash brought forward 203 60
Ending cash carried forward 269 203

The notes to these financial statements form part of and should be read in conjunction with this Statement of Cash Flows.

Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities

                          1994        1993
                         $000        $000

Reported surplus/(deficit) (195) 14
Add non-cash items:
Allocation to/(from) (500) 200
General Reserve
Unrealised interest on 6 (11)
bonds
Add premium paid on bond 2 13
purchases
Movements in working
capital items:
Increase in creditors 11 1
Increase/(decrease) in (1,373) 730
committed donations
Increase in taxation (29) (3)
receivable
Decrease in debtors 1 15
(Increase)/decrease in (37) 77
ASB Charitable Trust
(494) 189
Movements in investments:
Decrease in term - 2,550
deposits
(Increase)/decrease in 2,180 (3,443)
bonds
2,180 (893)
Net cash inflow from operating activities $66 $143

ASB Bank Community Trust

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

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 Cash Flows

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.

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:

                  1994     1993

This Trust 23% 40%
ASB Charitable Trust 77% 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.

Other investments are stated at market value. Any gains or losses are recognised in income and expenditure for the period.

Reserves

• The Investment Revaluation Reserve reflects the increase in the net tangible asset value of the shareholding in ASB Bank Limited.
• The Investment Fluctuation Reserve consists of unrealised gains or losses.
• The Charitable Purposes Reserve Fund represents funds appropriated by ASB Charitable Trust to enable the Trust to participate in the issue of new equity by ASB Bank Limited. In order to maintain the non taxable status of this Reserve, the Trust is required to segregate these funds appropriated from ASB Charitable Trust and the income attributable thereto. There are also certain restrictions on the distribution of income from this fund.
• 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 policies during this accounting period.

2. Income

Dividends—
Cash received 675 3,987
Imputation tax credit received 332 1,964
1,007 5,951

Other Investments—
Interest received 177 226
Investment profit realised 81 5
Investment loss unrealised (2) (13)
256 218
Investment profit unrealised 30 39
$286 $257