1866
NEW ZEALAND GAZETTE
No. 75

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

1. Statement of Accounting Policies

Reporting Entity

The Trust Bank Bay of Plenty Community Trust Incorporated is a charitable trust registered under section 14 (i) of the Trustee Banks Restructuring Act 1988. The group consists of Trust Bank Bay of Plenty Community Trust Incorporated and its subsidiary Bay of Plenty Trust Charities Limited.

The financial statements have been prepared as required by the Trustee Banks Restructuring Act 1988 and the trust deed dated 30 May 1988 and in accordance with generally accepted accounting practice.

Measurement Base

The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical cost basis are followed by the trust, with the exception of the revaluation of New Zealand Government Stocks.

Specific Accounting Policies

The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied:

(a) Donations: Donations made during the year are included in the statement of movements in equity and have been paid from trust capital.

(b) Investments: New Zealand Government Stocks are stated at assessed market value.

(c) Fixed Assets: Fixed assets are stated at cost less accumulated depreciation.

(d) Depreciation: Depreciation is charged to write off the cost of fixed assets over their expected economic lives using the diminishing value method at rates from 12 percent to 40 percent per annum.

(e) Accounts Receivable: Accounts receivable are recorded at their estimated realisable value.

(f) Financial Instruments: The trust includes all financial instrument arrangements in the balance sheet using the concept of accrual accounting. Financial instruments are valued as per note 1, measurement base. These instruments arise as a result of everyday operations and include bank, accounts receivable, accounts payable and investments. Revenues and expenses in relation to all financial instruments are recognised in the statement of financial performance. Financial instruments are shown at their fair values.

(g) The Trust Bank Bay of Plenty Community Trust and its subsidiary charitable company, Bay of Plenty Community Trust Charities Limited have been consolidated using the purchase method of consolidation.

Changes in Accounting Policies

The following changes have been made to accounting policies this year:

• Donations have been paid out of capital instead of revenue.
• Depreciation has been calculated using the diminishing value method instead of the straight-line method.
• The trust is no longer exempt from income tax. The tax status of the trust has been reviewed and as a consequence the trust is now liable for income tax on assessable income.

All other policies have been applied on bases consistent with those used in previous years.

2. Dividends

Trust Bank New Zealand Limited ........................................... 2,140,000 3,210,000
Community Trusts Investment Limited .................................... 178 –

                                                             $2,140,178   $3,210,000

3. Equity

General Fund—

Balance 1 April 1996 ................................................. 21,340,281 19,299,199
Net surplus for the year ............................................. 9,078,769 2,041,082
Realised revaluations transferred from investment revaluation reserve ... 58,375,680 –
Capital profit on sale of TBNZ shares ................................ 11,065,790 –
Return of non taxable share capital .................................. 90 –
Less donations paid from capital ................................... (2,389,198) –

                                                             97,471,412   21,340,281

Investment Revaluation Reserve—

Balance 1 April 1996 ................................................. 58,375,680 40,079,475
Revaluation for the year ............................................. 23,098 18,296,205

                                                             58,398,778   58,375,680