NEW ZEALAND GAZETTE

3 JULY

1583

Donations to the community ... ... ... ... $
... 1997
(15,901,377)

... 1996
(9,510,104)

Investing
12,246,843
2,888,380

Purchase of Government securities ... ... ... ... (491,000)
–

Sale of Government and local authorities securities ... ... ... 1,121,000
300,000

Sale of Armstrong Jones Investment ... ... ... –
1,164,625

Sale of Trust Bank New Zealand Limited shares ... ... ... 342,157,244
–

Increase in bank deposits ... ... ... (343,504,451)
(2,697,562)

Reduction of Armstrong Jones managed funds ... ... ... 2,244,502
–

Purchase of investment property ... ... ... (1,713,731)
(148,539)

Community loans ... ... ... 26,483
(150,656)

Purchase of fixed assets ... ... ... (11,774)
(54,858)

Sale of fixed assets ... ... ... 28,500
–

... ... ... (171,727)
(1,558,490)

Increase in cash ... ... ... 12,075,116
1,329,890

Cash at beginning of year ... ... ... 1,438,960
109,070

Cash at end of year ... ... ... $13,514,076
$1,438,960

Represented by:
WestpacTrust—current account ... ... ... 308,794
71,180

WestpacTrust—on call account ... ... ... 13,205,282
1,367,780

... ... ... $13,514,076
$1,438,960

The notes to the financial statements form part of and are to be read in conjunction with these financial statements.

Notes to the Financial Statements for the Year Ended 31 March 1997

1. Statement of Accounting Policies

General Accounting Policies

The following general accounting policies have been adopted in the preparation of the financial statements.

(i) Trust Bank Canterbury Community Trust Inc. was incorporated as a charitable trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988. These financial statements have been prepared in accordance with applicable financial reporting standards.

(ii) The measurement base adopted is that of historical cost, except for the revaluation of investments. Reliance is placed on the fact that the trust is a going concern.

(iii) The matching of revenue earned and expenses incurred using accrual accounting concepts.

Specific Accounting Policies

Depreciation

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

• Office equipment: 6 to 48 percent c.p.
• Motor vehicles: 18 to 22 percent 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 direct to the core real capital base reserve. Differences between the book value and sale proceeds of investments realised are 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.