1922
NEW ZEALAND GAZETTE
No. 71

Measurement Base

The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical cost basis are followed by the trust, with the exception that investments have been revalued. Dividend income is accounted for on a receipts basis.

Specific Accounting Policies

The following specific accounting policies which materially affect the measurement of financial performance and the financial position have applied:

(a) Donations: Donations made are included in the income and expenditure account when paid.

(b) Investments: Shares held in Trust Bank New Zealand Limited are stated at market value. Government stocks are stated at assessed market value.

(c) Accounts Receivable: Accounts receivable are recorded at their estimated realisable value.

(d) Financial Instruments: The trust includes all financial instrument arrangements in the balance sheet using the concept of accrual accounting. Financial instruments are valued as per note 1, measurement base. These instruments arise as a result of everyday operations and include: bank, accounts receivable, accounts payable and investments. Revenues and expenses in relation to all financial instruments are recognised in the Income and Expenditure Statement. Financial instruments are shown at their fair values.

Changes in Accounting Policies

There have been no changes in accounting policies, other than the basis of the valuation for investments. Shares are now stated at market value (previously cost price) and Government stock, previously stated at cost less discounts or premiums amortised over the term of investment on a straight line basis, are now shown at assessed market value.

2. Dividends

Dividends received from Trust Bank New Zealand Limited ........................... $675,000
Interim dividend (declared in respect of the financial year ended 31 March 1995 and received 19 December 1994) ................................................... 1,222,857
Trust Bank New Zealand Limited 1:1 bonus issue 1 February 1994 ................... –

1995
$

1994
$

631,275
450,000
7,500,000

3. Investments

Shares in Trust Bank New Zealand Limited: direct—2000 ordinary shares of 50c each, fully paid at market value of $1.89 each ........................................... $3,780
Through Community Trusts Nominees Limited—30 569 429 ordinary shares of 50c each fully paid at market value of $1.89 each ........................................... 57,776,220
Total shares ............................................................. 57,780,000
Government stocks are shown at assessed market value ........................... 1,436,664
Government stocks at cost price adjusted by amortised discount/premium to date ....... 1,411,188

1995
$

1994
$

1,200
17,724,800
17,726,000*
670,469

*1994 share values shown at cost.

4. Investment Revaluation Reserve

During the year investments were revalued, creating an investment revaluation reserve of $40,079,476.

5. Financial Instruments

Credit Risk

Financial instruments which potentially subject the trust to credit risk principally consist of bank balances and accounts receivable. Maximum exposure to credit risk as at balance date are:

Bank balances ......................................................... $117,872
Accounts receivable ..................................................... 35,416

1995
$

1994
$

43,234
5,771

Concentrations of Credit Risk

The bank balances are held with Trust Bank Bay of Plenty Limited. There are no other material concentrations of credit risk.

Market Risk

The value of investment, which are held in shares and Government stock, are subject to market fluctuations. No provision has been made for potential gains or losses that could occur due to market fluctuations.

Fair Value

The carrying value is considered to be fair value for all financial instruments.

6. Taxation

For taxation purposes the trust is a charitable organisation. Its income is not subject to taxation.