2158

NEW ZEALAND GAZETTE

No. 90

required to segregate these funds contributed from ASB Charitable Trust and the income attributable thereto. There are also certain restrictions on the distribution of income from this fund.

Transfers to other reserves from the unallocated surplus are made at the discretion of the trustees.

Taxation

Taxation includes both current and deferred tax. Deferred tax is calculated using the comprehensive liability method.

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. Income—Other Investments

Interest received ........................................... 434 444
Investment profit/(loss) .................................... 82 (6)

                                               $516     $438

3. Investments

Shares in ASB Bank Limited—
Balance as at 1 April .................................. 142,150 121,512
Increase in net tangible assets ......................... 21,700 20,638

Balance as at 31 March ............................... $163,850  $142,150

The increase in net tangible assets is based on unaudited accounts of ASB Bank Limited as at 31 December 1998.

Change in Shareholding

The investment held in ASB Bank Limited is disclosed based on the shares held and net tangible assets of ASB Bank Limited as at 31 December 1998 in accordance with the trust’s accounting policy.

On 30 March 1999 an arrangement was entered into whereby the trust exchanged its 25 percent shareholding in ASB Bank Limited for a 25 percent shareholding in ASB Group Limited. This company will hold 100 percent of the shares in ASB Bank Limited and ASB Life Assurance Limited.

This transaction has not been reflected in the current financial statements, as in substance the trust’s shareholding in the new group would have effectively been the same as shown in the financial statements.

Other Investments

These consist of securities and deposits managed in-house.

Investments comprise:

Call deposits ............................................ 491 110
Call deposits charitable purposes reserve fund ............. 264 0
Term deposits ............................................ 3,259 4,250
Term deposits charitable purposes reserve fund ............ 566 643
Bonds .................................................. 1,462 1,380

                                               $6,042   $6,383

Certain of the trust’s deposits 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.

4. Taxation

Surplus before taxation ................................ 27,034 25,464
Net dividend ........................................... (5,325) (4,850)
Unrealised investment revaluations ....................... (21,700) (20,638)
Income attributable to charitable purposes reserve fund .. (51) (61)
Non-deductible expenditure ............................. 431 384
Distribution to tax approved beneficiaries ............. (425) (339)
Taxable loss brought forward ........................... (119) (79)

Taxable loss carried forward ........................... $(155) $(119)
Taxation charge @ 33 percent ........................... $0 $0
Over provision of prior years .......................... $0 $(93)