1950
NEW ZEALAND GAZETTE
No. 79

Fixed Assets
Fixed assets are valued at cost less accumulated depreciation.

Investment Properties
These are valued at market value. Movements in the valuation of investment properties are recorded in the statement of income and expenditure. No provision for depreciation is made on these properties.

Foreign Currencies
All amounts denominated in foreign currencies are converted to New Zealand dollars at balance date and all realised and unrealised gains and losses are recognised in income and expenditure for the period.

Investments
Investments are stated at market value. Any gains or losses are recognised in income and expenditure for the period. Investment transactions are recorded by the fund managers on a settlement date basis. Unsettled transactions are disclosed in the notes as commitments.

Financial Instruments
All assets and liabilities of the trust with the exception of fixed assets are financial instruments and are recognised in the balance sheet. All financial instruments are recorded at market value or fair value or are not materially different from market value or fair value.

The trust uses financial instruments with off balance sheet risk to reduce exposure to fluctuations in foreign currency exchange rates. Forward exchange contracts are entered into to hedge foreign currency transactions. These are converted to the New Zealand dollar rate at balance date with all realised and unrealised gains and losses being recognised in the income and expenditure statement.

The quantitative disclosures required by FRS 31 disclosure of information about financial instruments, have been included throughout the financial statements where material.

Reserves
Transfers to the capital maintenance reserve are based on the annual movement in the consumer price index. Transfers to all other reserves from the unallocated surplus are made at the discretion of the trustees.

Taxation
The trust has been accorded tax exempt status in New Zealand and Australia but is liable to taxation on investment income in some other overseas countries. Tax on overseas income is accounted for as a reduction of that income.

Comparatives
Certain comparatives have been restated for disclosure purposes.

Changes in Accounting Policies
There have been no material changes in accounting policies during the period.

2. Investments
   Managed by external managers—
   Balance as at 1 April ........................................... 358,693 331,226
   Movement in market value ................................... 42,111 42,467
   Withdrawals ................................................ (17,500) (15,000)
   Balance as at 31 March ..................................... $383,304 $358,693

Investments managed by external managers comprise—
Cash, deposits and miscellaneous .......................... 69,129 54,732
Bonds ..................................................... 185,208 189,669
Equities .................................................. 128,967 114,292
Portfolio total ........................................... $383,304 $358,693

Other investments comprise—
Call deposits ............................................. 945 1,483
Bonds ..................................................... 213 214
........................................................ $1,158 $1,697

‘Other investments’ are managed in-house. Included in these are deposits, certain of which are subject to a right of set-off under the terms of the trust’s banking agreement. There has been no set-off applied in the presentation of these accounts.

Investment properties—
Balance as at 1 April ..................................... 0 960
Expenditure capitalised .................................. 0 120
Realised gain on disposal ................................. 0 120