NEW ZEALAND GAZETTE

No. 77

1854

Financial Instruments

Financial instruments all relate to cash, accounts receivable and accounts payable, and all revenues and expenses relating to these are recognised in the statement of financial performance in the period that any gain or loss becomes certain.

Cash and investments are stated at cost. Receivables are stated at net realisable value.

Payables are stated at amounts owed to those entities at balance date.

The maximum exposure to credit risk is represented by the carrying value of each of the financial assets and liabilities in the statement of financial position.

Income Tax

Income tax expense is recognised on the surplus available for distribution before taxation, adjusting for differences between taxable and accounting income.

Changes in Accounting Policies

There have been no changes in accounting policies during this accounting period.

Changes in Comparative Figures

Where applicable, certain comparatives have been restated to comply with the accounting presentation adopted for the current period.

| | 2001
| $000 | 2000
| $000 |
|-----------------------|-------|-------------------------------------|-------|
| 1. Revenue | | | |
| Interest | 59 | | 73 |
| Managed funds | 5,472 | | 11,456|
| Other | 137 | | 87 |
| | 5,668 | | 11,616|

| 2. Expenditure | | | |
| Depreciation | 80 | | 81 |
| Fund managers’ fees | 838 | | 815 |
| Occupancy | 50 | | 50 |
| Other operating | 123 | | 90 |
| Professional fees | 197 | | 252 |
| Promotion | 34 | | 32 |
| Public & statutory reporting| 64 | | 62 |
| Staff | 222 | | 221 |
| Trustee fees | 154 | | 152 |
| Trustee expenses | 32 | | 36 |
| | 1,794 | | 1,791 |

Professional Fees—

Payments to auditors:

• Audit fees | 8 | | 8 |
• Accounting and other support | 17 | | 22 |
• Computer support | 13 | | 8 |
  | Legal advisors | 4 | | 5 |
  | Professional investment advisers | 80 | | 80 |
  | Tax advice | 28 | | 30 |
  | Other professional advice | 47 | | 99 |
  | | 197 | | 252 |

3. Trust Funds

Trust Capital

The trust capital represents the realised value of its original asset, being shares in Trust Bank. They were sold, partly in 1994 when Trust Bank listed on the NZ Stock Exchange and the balance in 1996 when Westpac took over Trust Bank.

| Capital maintenance reserve: | | |
| Opening balance | 11,181| 9,073 |
| Transfers | 4,422 | 2,108 |
| Closing balance | 15,603| 11,181|