10 AUGUST NEW ZEALAND GAZETTE 2197

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 does not include cash or deposits held by the fund managers. Therefore the Statement of Cash Flows does not reflect the cash flows within the fund managers’ portfolios.

Depreciation

Depreciation is provided over the useful life of the assets. Buildings are depreciated on a straight line basis. Vehicle, office equipment and furniture are depreciated on a diminishing value basis. The rates used are those recommended by the Inland Revenue Department.

Dividends

Dividends are recognised as income when they are received by the trust and exclude 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 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:

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, except for the ASB Group Limited term loan which is to be held to maturity. The ASB Group Limited term loan is stated at cost plus accrued interest. 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, except for the ASB Group Limited term loan which is to be held to maturity, are recorded at market 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 restated 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 | 454,284 | 438,652 |
| Movement in market value | 61,196 | 40,132 |
| Withdrawals | (81,000) | (24,500) |
| Balance as at 31 March | 434,480 | 454,284 |