1990 NEW ZEALAND GAZETTE No. 73

Allocation to Charitable Purposes Reserve Fund .......................... 722
Unrealised interest on bonds ........................................ 2
Premium on bonds .................................................. (18)

Movements in working capital items:
Increase/(decrease) in creditors .................................. (3)
Increase/(decrease) in committed donations .......................... 268
Increase/(decrease) in taxation receivable .......................... 28
Increase/(decrease) in debtors .................................... (13)
Increase/(decrease) in ASB Charitable Trust ........................ 36

Movements in investments:
ASB Bank Limited capital call ................................... 4,075
Increase in term deposits ....................................... (1,307)
Decrease in bonds ............................................... 336

Net cash inflow from operating activities ............................ 3,104

Notes to the Financial Statements for the Year Ended 31 March 1995

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 percent 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.

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.

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 excludes Charitable Purposes Reserve Fund cash.

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:

This trust ....................................................... 40 percent
ASB Charitable Trust .............................................. 60 percent

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.

Financial Instruments

All assets and liabilities of the trust are financial instruments and are recognised in the balance sheet. All financial instruments are recorded at market value or fair value. The quantitative disclosures required by FRS 31 Disclosure of Information About Financial Instruments, have been included throughout the financial statements where material.

Reserves

• The investment revaluation reserve reflects the increase in the net tangible asset value of the shareholding in ASB Bank Limited less that portion attributable to the Charitable Purposes Reserve Fund.

• 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.

1995
$000
(66)

11
(1,373)
(29)
1
(37)

316

3,104
$4,033

1994
$000
(493)

(1,427)

5,931
$3,816

1995 1994
40 percent 23 percent
60 percent 77 percent