2192 NEW ZEALAND GAZETTE No. 89

Notes to the Financial Statements for the Year Ended 31 March 2000

1. Statement of accounting policies

The ASB Bank Community Trust (“the trust”) is the reporting entity. 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% 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:

Investments

Investments in shares are valued at the net tangible asset backing as disclosed in the latest published accounts. Any revaluation difference is transferred to the investment reserve. Other investments are stated at market value. Any gains or losses are recognised in income and expenditure for the period.

Financial instruments

All assets and liabilities of the trust 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 quantitative disclosures required by FRS 31 Disclosure of Information about Financial Instruments have been included throughout the financial statements where material.

Reserves

The Investment Reserve reflects both the realised and unrealised increase in the net tangible asset value of the shareholding in ASB Group Limited. It excludes the portion of the increases attributable to the Charitable Purposes Reserve Fund.

The Charitable Purposes Reserve Fund represents funds contributed by ASB Charitable Trust to enable the trust to participate in the issue of new equity by ASB Group Limited. In order to maintain the non-taxable status of this reserve, the trust is 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
322
434

Investment (loss)/profit
(85)
82

Total
237
516

3. Investments

Shares in ASB Group Limited

Balance as at 1 April
163,850
142,150

Increase in net tangible assets
26,525
21,700

Balance as at 31 March
190,375
163,850