5 AUGUST

NEW ZEALAND GAZETTE

2163

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 regrouped 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 ...................................................... 438,652 383,304
• Movement in market value .................................................. 40,132 77,598
• Withdrawals .............................................................. (24,500) (22,250)

Balance as at 31 March .................................................... $454,284 $438,652

Investments managed by external managers comprise—

• Cash, deposits and miscellaneous .......................................... 76,611 58,487
• Bonds ...................................................................... 194,781 191,673
• Equities .................................................................. 182,892 188,492

Portfolio total ............................................................ $454,284 $438,652

Other investments comprise—

• Call deposits .............................................................. 333 552
• Bonds ...................................................................... 115 109

.......................................................................... $448 $661

'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.

3. Reserves

Capital maintenance reserve—

• Balance as at 1 April ...................................................... 64,958 60,565
• Allocation (to)/from surplus ............................................. (336) 4,393

Balance as at 31 March .................................................... $64,622 $64,958

General reserve—

• Balance as at 1 April ...................................................... 100,000 58,000
• Allocation from surplus ................................................... 0 42,000

Balance as at 31 March .................................................... $100,000 $100,000