30 JULY NEW ZEALAND GAZETTE 2311

Expenses

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

Joint expense allocations were:

This trust ........................................ 60 percent 60 percent
ASB Bank Community Trust ..................... 40 percent 40 percent

Fixed Assets

Fixed Assets are valued at cost less accumulated depreciation.

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.

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 ............................ $383,304 $358,693
Movement in market value ....................... 77,598 42,111
Withdrawals .................................... (22,250) (17,500)
Balance as at 31 March ......................... $438,652 $383,304

Investments managed by external managers comprise—

Cash, deposits and miscellaneous ............. 58,487 69,129
Bonds ........................................ 191,673 185,208
Equities ..................................... 188,492 128,967
Portfolio total .............................. $438,652 $383,304

Other investments comprise—

Call deposits ................................ 552 945
Bonds ........................................ 109 213
$661 $1,158

‘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.