Financial Statements




NEW ZEALAND GAZETTE

No. 76

1996 $ 1995 $
SCHE 505,000 0
Southland Polytechnic Bursaries 9,000 3,750
Southland Competitions Society 0 1,000
Southland District Council 10,000 10,000
Southland Promotions 0 5,000
St Johns Central Southland 0 10,000
TBS Art Foundation 25,000 0
Tourism Spirit of a Nation 25,000 0
Waipahi Rowing Club 25,000 0
Wakatipu Environmental Society 0 1,000
Total 1,540,780 780,750

9. Reconciliation of Net Surplus to Operating Activities

1996 $ 1995 $
Net surplus for the year 3,256,462 2,245,830
Increase (decrease) in other liabilities 748,547 116,836
(Increase) decrease in other assets 2,475,152 -2,506,200
Net movement in investing activities -8,887,546 -1,175,282
Net cash flow from (used in) operating activities (2,407,385) (1,318,816)

10. Fixed Assets

Fixed assets are recorded at cost less accumulated depreciation:

Cost $ Accumulated Depreciation $ Book Value 1996 $
Equipment 18,387 3,298 15,089

11. Depreciation

Depreciation has been charged in the financial statements using rates which will write off the cost of the assets less their estimated residual value over their estimated economic lives. The depreciation rates used are:

Equipment: 10–30 percent c.p.

12. Financial Investments

Credit Risk

Financial investments which potentially subject the trust to credit risk consist of bank balances, shares and accounts receivable.

Concentration of credit risk due to client balances are high due to the trust having all its cash investments and shares with Trust Bank New Zealand Limited.

Maximum exposures to credit risk as at balance date are:

1996 $ 1995 $
TRUST Bank Southland—current account 207,255 27,094
TRUST Bank Southland—money market account 6,600,000 2,800,000
Shares in Trust Bank New Zealand Limited 24,281,000 24,281,000

Fair Value

The following methods and assumptions were used to estimate the fair value of each class of financial instrument.

Cash receivables, short-term deposits, payables.

The fair value amount of the financial instruments which have been disclosed is considered to be the same as determined in accordance with the accounting policies as disclosed in the financial instruments.

13.

Subsequent to balance date the trust has agreed to sell its share in Trust Bank New Zealand to Westpac for $2.92 per share realising approximately $166 million to the trust.

Audit Report to the Members of Trust Bank Southland Community Trust Incorporated

We have audited the financial report. The financial report provides information about the past financial performance of the trust and its financial position as at 31 March 1996. This information is stated in accordance with the accounting policies as outlined.

Trust Responsibilities

The Trust Bank Southland Community Trust is responsible for the preparation of a financial report which gives a true and fair view of the financial position of the trust as at 31 March 1996 and of the results of operations and cash flows for the year ended 31 March 1996.



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