NEW ZEALAND GAZETTE

No. 73

1850

Office equipment ... 6-36% c.p.

Motor vehicles ... 18-21.6% c.p.

Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation.

Investments

Investments held as managed funds are shown at market value. Net income including realised and unrealised gains or losses from holding or trading these investments are recorded in the statement of financial performance.

Other investments represent assets to be held to maturity or as long-term strategic investments and are shown at market value. Unrealised gains or losses from holding such investments are transferred directly to the revaluation reserve. These unrealised gains or losses when realised on subsequent disposal of investments are transferred from the revaluation reserve to the statement of financial performance. Differences between the book value and sale proceeds of investments realised are also recorded in the statement of financial performance.

Donations, Special Projects and Community Loans

Donations, special projects and community loans are accounted for on an accruals basis.

Dividend Income

Dividend income is included in the statement of financial performance when it is received.

Income Tax

Income tax expense is recognised on the surplus available for distribution before taxation, adjusting for differences between taxable and accounting income.

Goods and Services Tax

The subsidiary of Canterbury Trust House Limited is registered for G.S.T. Accordingly its financial performance and financial position have been consolidated within the accounts on a G.S.T. exclusive basis.

Subject to the above, the trust is not registered for G.S.T. purposes and therefore the financial statements have been prepared on a G.S.T. inclusive basis.

Financial Instruments

Foreign currency transactions are translated to New Zealand currency at the exchange rate ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date are translated at the exchange rate at that date. Exchange differences arising from the translation of amounts payable and receivable in foreign currencies are recognised in the statement of financial performance.

Off-balance sheet financial instruments that are designated as hedges are recognised on the same basis as the underlying hedged item. Off-balance sheet transactions that do not constitute specific hedges are stated at market value and any resultant gain or loss is recognised in the statement of financial performance.

Basis of Consolidation

The Trust Bank Canterbury Community Trust, Canterbury Community Trust Charities Limited and its subsidiary Canterbury Trust House Limited have been consolidated using the purchase method of consolidation.

Changes in Accounting Policies

There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in the previous year.

2. Investments

The Trust Bank New Zealand Limited shares are valued at the market price of $2.47 on 31 March 1996. During the month of March the value of the shares increased by $0.48 per share. This increase was primarily due to market speculation that the shares held by Community Trust Nominees Limited on behalf of the various Community Trusts were to be sold to a third party at an undisclosed price in the near future.