NEW ZEALAND GAZETTE

No. 94

Donations

Donations are accounted for as they are 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:

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

Investment in managed funds and other 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.

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 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

Taxation includes both current and deferred tax. Deferred tax is calculated using the comprehensive liability method. Deferred
tax assets are recognised when future taxable income is certain.

Changes in accounting policies

There have been no material changes in accounting policies during the period.

2. Income

| | | |
| Managed funds | (36,454) | 6,716 |
| Other income received | 636 | 935 |
| Investment loss | – | (30) |
| | (35,818) | 7,621 |

3. Investments

Managed by external managers:
| | 2003 | 2002 |
| Balance as at 1 April | 485,813 | 463,458 |
| Transfers (from)/to managers | (28,090) | 15,639 |
| Movement in market value | (36,454) | 6,716 |
| | 421,269 | 485,813 |

Investments managed by external managers comprise:

| | 2003 | 2002 |
| Cast, deposits and miscellaneous | 55,587 | 56,533 |
| Bonds | 201,016 | 209,646 |
| Equities | 164,666 | 219,634 |
| Portfolio total | 421,269 | 485,813 |

Other investments—
These consist of securities and deposits managed in-house

Investments comprise:
| | 2003 | 2002 |
| Call deposits | 180 | 1,363 |
| Bonds | 512 | 512 |
| | 692 | 1,875 |

4. Taxation

| (Loss)/surplus before taxation | (37,340) | 6,067 |
| Net dividend and imputation credit adjustment | (953) | (734) |
| Investment revaluations for tax purposes | (123) | 4,278 |
| Non-deductible expenditure | 587 | 590 |