✨ Financial Performance Report
1718 NEW ZEALAND GAZETTE No. 70
Changes in Accounting Policies
Following the sale of the trust’s investment in Trust Bank New Zealand Limited, the trustees have developed an investment policy to meet the long-term objectives of the trust. Due to this change in circumstances the policies for valuation of investments and accrual of donations have been changed.
Donations are now accounted for on an accruals basis. All investments are now valued at market value. With the exception of these changes all policies have been consistently applied. The effect of these changes to accounting policies in terms of the financial performance for the year is as follows:
| | Increase/(Decrease)
in Surplus for Year |
| --- | --- |
| Increase in donations accounted for in statement of financial performance | $(288,149) |
| Change in value of investments in statement of financial performance | $97,009 |
2. Income from Investments
| 1997 $ | |
|---|---|
| Dividends received from Trust Bank New Zealand Limited | 2,436,000 |
| Realised investment income | |
| New Zealand | 7,000,408 |
| Overseas | 474,844 |
| Unrealised investment income | |
| New Zealand | (847,948) |
| Overseas | 23,373 |
| Realised foreign exchange income | 554,579 |
| $9,641,256 |
| 1996 $ | |
|---|---|
| Dividends received from Trust Bank New Zealand Limited | 3,654,000 |
| Realised investment income | |
| New Zealand | 296,324 |
| Overseas | — |
| Realised foreign exchange income | — |
| $3,950,324 |
3. Reserves
| 1997 $ | |
|---|---|
| Revaluation reserve | — |
| 1996 $ | |
|---|---|
| Revaluation reserve | $61,270,000 |
This reserve, created to hold the increment in value of the shareholding in Trust Bank New Zealand Limited, has been realised.
5. Cash and Bank Deposits
| 1997 $ | |
|---|---|
| Current accounts | 50,829 |
| Call accounts | 5,122,869 |
| Petty cash | 59 |
| Short-term deposit | 6,000,000 |
| $11,173,757 |
| 1996 $ | |
|---|---|
| Current accounts | 5,162 |
| Call accounts | 446,129 |
| Petty cash | 59 |
| Short-term deposit | 1,382,000 |
| $1,833,350 |
5. Donations Payable
Included in donations payable are $95,000 of donations which are subject to the donees fulfilling certain conditions.
6. Investments
| 1997 $ | |
|---|---|
| New Zealand Government stock | $4,076,398 |
| Kiwi bonds | 242,492 |
| Managed funds | 79,938,978 |
| New Zealand shares | 14,030,711 |
| $98,288,579 |
| 1996 $ | |
|---|---|
| New Zealand Government stock | 2,809,270 |
| Kiwi bonds | 232,000 |
| Managed funds | — |
| Shares in Trust Bank New Zealand Limited | 73,080,000 |
| $76,121,270 |
7. Financial Instruments
Financial instruments include New Zealand Government stock, short-term deposits, equities and investments in managed funds both within New Zealand and overseas.
Credit Risk
The trustees regularly review their investment strategy. The investment strategy ensures an appropriate diversification of investments so that the trust has no significant concentration of counterparty or credit risk.
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NZ Gazette 1997, No 70
✨ LLM interpretation of page content
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Trust Bank Eastern and Central Community Trust Inc. Financial Performance
(continued from previous page)
💰 Finance & Revenue13 June 1997
Financial Performance, Income, Expenditure, Trust Bank