28 JULY
NEW ZEALAND GAZETTE
2437

Note
1994
$000
1993
$000
Less fund managers’ income
reinvested by fund managers
(16,060)
(31,547)
Net cash inflow from operating
activities
$343
$724

ASB Charitable Trust
Notes to the Financial Statements for the Year Ended 31 March 1994

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 as net income from managed funds.

Depreciation

Depreciation is provided over the useful life of the assets. The rates used are those recommended by the Inland Revenue Department.

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.

Expenses

Some 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 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

• Transfers to the Capital Maintenance Reserve are based on the annual movement in the Consumer Price Index.
• The Investment Fluctuation Reserve consists of unrealised gains or losses. Losses are allocated to this Reserve to the extent that they offset previous gains.
• Transfers to all other Reserves from the Unallocated Surplus are made at the discretion of the Trustees.

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

Managed by external managers

Investments comprise

Held in: New Zealand

Other investments

Investments comprise