30 JULY NEW ZEALAND GAZETTE 2305

Cash flows from investing activities—
Cash was provided from:
Special dividends received ... 0 57,955

Cash was disbursed on:
Increase in term deposits ... (940) (1,142)
Increase in bonds ... (511) 0
ASB Bank Limited share purchase ... 0 (57,955)

                (1,451)     (59,097)

Net cash outflow from investing activities ... (1,451) (1,142)
Net cash (outflow)/inflow from activities ... (421) 83
Add opening cash brought forward ... 522 439

Ending cash carried forward ... $101 $522

The notes to these financial statements form part of and should be read in conjunction with this statement of cash flows.

Reconciliation of Reported Surplus to Net Cash Flow From Operating Activities

                1998        1997
                $000        $000

Reported surplus ... 22,108 14,864

Add non-cash items:
Unrealised investment revaluations ... (20,638) (15,196)
Unrealised movement on bonds ... 11 0
(20,627) (15,196)

Movements in working capital items:
Decrease in creditors ... (1) (28)
(Decrease)/increase in committed donations ... (494) 1,959
Net charitable purposes reserve fund ... 56 (372)
Decrease/(increase) in taxation receivable ... 22 (63)
(Increase)/decrease in debtors ... (23) 12
(Decrease)/increase in ASB Charitable Trust ... (11) 49
(451) 1,557

Net cash inflow from operating activities ... $1,030 $1,225

Notes to the Financial Statements for the Year Ended 31 March 1998

1. Statement of Accounting Policies

The ASB Bank Community Trust (“the Trust”) was formed on 30 May 1988 through the creation of a trust deed in compliance with the Trustee Banks Restructuring Act 1988. Under the terms of the trust deed the trust was settled with 60 million $1 fully paid ordinary shares in ASB Bank Limited representing 100 percent of the issued capital. As at 31 March 1988 the net tangible asset backing of those 60 million shares was $147,655,000. In 1989 45 million shares were sold to the Commonwealth Bank of Australia for $252,000,000 which was then donated to the ASB Charitable Trust.

The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Reliance is placed on the fact that the trust is a going concern. The financial statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993.

Bank
Bank is stated as the balance in the bank account rather than the balance as per the cash book.

Statement of Cash Flows
Cash comprises cash at bank and call deposits but excludes charitable purposes reserve fund cash at bank and call deposits.

Dividends
Dividends are recognised as income when they are received by the trust. They are recorded net of any imputation tax credits.

Donations
Donations are accounted for as they are distributed or committed to be distributed to eligible organisations as approved by the trustees.

Expenses
Some expenses are shared jointly with the ASB Charitable Trust. Whilst each trust bears its own specific costs, the joint expenses are allocated between each trust on the basis of the number of applications processed by each.

Joint expense allocations were:

                1998        1997

This trust ... 40 percent 40 percent
ASB Charitable Trust ... 60 percent 60 percent