2512 NEW ZEALAND GAZETTE, No. 101 19 AUGUST 2004

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.

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.

Changes in accounting policies

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

| 2004 2003
| $000 $000

2. Investments

Managed by external managers:

Balance as at 1 April 406,541 469,050
Movement in market value 72,311 (33,509)
Net withdrawals (22,466) (29,000)
Balance as at 31 March 456,386 406,541

Investments managed by external managers comprise:

Cash, deposits and miscellaneous 20,224 56,103
Bonds 199,562 200,018
Equities 236,600 150,420
Portfolio total 456,386 406,541

Other investments comprise:

Call deposits 1,115 140
1,115 140

3. Income

Investments:

Pooled funds 26,068 (40,662)
Dividends 3,059 1,603
Interest 8,705 9,715
Realised gains 8,078 2,400
Unrealised gains/(losses) 22,360 (9,801)
Realised foreign exchange (losses)/gains (4,445) 27,974
Unrealised foreign exchange gains/(losses) 8,486 (24,738)
Other income received 600 682
72,911 (32,827)

4. Reserves

Capital maintenance reserve:

Balance as at 1 April 97,056 88,473
Transfer from surplus 5,610 8,583
Balance as at 31 March 102,666 97,056

General reserve:

Balance as at 1 April 50,000 100,000
Transfer to surplus – (50,000)
Balance as at 31 March 50,000 50,000