NEW ZEALAND GAZETTE

17 JULY

Statement of Cash Flows for the Year Ended 31 March 1997

Cash flows from investing activities—

| Cash was received from: | | | |
| Sale of investment in Trust Bank New Zealand | 2 | 162,603,993 | 0 |
| Other investments | | 0 | 2,500,000 |
| Interest and dividends | | 15,718,318 | 6,403,863 |
| | | 178,322,311 | 8,903,863 |

| Cash was disbursed to: | | | |
| Investments | | 180,219,921 | 0 |
| Fixed assets | | 111,187 | 16,317 |
| | | 180,331,108 | 16,317 |

| Net inwards (outwards) cash flows from investing activities | | (2,008,797) | 8,887,546 |

| Net increase (decrease) in cash held | | (6,046,878) | 6,480,161 |

| Cash held at beginning of year | | 6,807,255 | 327,094 |
| Cash held at end of year | | 760,377 | 6,807,255 |
| Net increase (decrease) in cash held | | (6,046,878) | 6,480,161 |

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

1. Statement of accounting policies

General

The financial statements presented here are for the reporting entity the Trust Bank Southland Community Trust Inc. The trust prepares the financial statements on the basis of historical cost and in accordance with generally accepted accounting principles.

Consolidation

The trust and its wholly owned company Southland Community Trust Charities Limited form a group. The trust uses the purchase method of consolidation.

Investments

The trust states its equity investments at market value, and report unrealised gains or losses on holding these investments in the statement of financial performance. The trust intends to hold bank deposits until maturity and states these investments at cost.

Fixed Assets

The trust states motor vehicles and office equipment at cost less depreciation, calculated on a straight line basis so as to allocate the cost of the assets over their useful lives. The trust allocates costs over the following periods:

• Motor vehicles ... 5 years
• Computers and software ... 3 years
• Other office equipment ... 7 years

Accounts Receivable

The trust states these at expected realisable value.

Grants

The trust brings these to account when approved by trustees.

Income Tax

The trust provides for income tax on its net income after adjusting for tax accounting differences and any beneficiaries income determinations made pursuant to section OB1 (226) of the Income Tax Act.

Goods and Services Tax

The trust is not registered for the goods and services tax. The statement of financial performance and the statement of cash flows are prepared so that all components are stated inclusive of G.S.T.