Page 27 Advertisements Column 1

Press, 10 January 1987, Page 27

V7l Fl 1 A■a A ■ I IllaM New Zealand’s Largest Building Society FINANCIAL STATEMENTS UNITED BUILDING SOCIETY AND SUBSIDIARY COMPANIES (years) ' value I 9 ' ,e 8 ssets Cost or Accumulated Book Cost or Accumulated Bock pi >■— ik a■ ■ a* - b a a Rtiiidines 20-100 NIL valuation depreciation value valuation depreciation .yvuß REVENUE STATEMENTS Leasehold improvements . . Term ofLease NIL $(000) $(000) $(000) $(000) $(000) $(000) VCAP CNntn CCDTCMQCD IQQC Plant, equipment, furniture and fittings 1 °* 2o L: , United BuiMlng Society TEAK tnutu JU btr ItMBtK 1700 Office and computer equipment | 50% of Cost Land - at valuation 15,289 - 15,289 9,822 - 9.822 Consolidated United Building Society Vehicles l7 478 3 17,475 17,648 19 17,629 Note $(000) $(000) $(000) $(000) include that land and those buildings (whether completed or under construction) relating to the Rant^ttingTandleasehold 5 * 6 ‘° l2 ~ 6 '° l2 ' WI 101 Income was earned during the year from - ~, an aid na7nq Rn . ' lifecare village units which are occupied by residents under various tenancy agreements and are intended to be held for the improvements 10,698 2,350 8,348 8,757 1,64, 7,113 Investments 2 s'9|| 5 ' 9 || 5 ' 7 gQ 12 '837 5,5 13 6 824 160,205 104,913 157,162 105,085 registered valuers. Investment properties being developed are stated at cost which includes all direct acquisition and rtm c? 40654 7 216 42 438 Deduct the cost of funds attributable to- construction costs together with interest on the funds invested during the period until construction' -.-fa Shares 3 75,054 52,504 75,054 52,504 In accordance with the requirements of Statement of Standard Accounting Practice No 17 Accounting for Investment ConsoHdated Deposits 41,012 25,458 40,955 25,458 Properties by Property Investment Companies” investment properties are not depreciated and the gain or loss on the annual Land — at valuation 15,298 — 15,298 9.822 — Bank overdrafts 477 682 296 682 revaluation of such properties is taken direct to the revenue statement with gains subsequently being transferred to a —at cost 253 — 253 72 — /Z —116,543 78,644 —116.305 of investment properties, amounts previously credited to the revaluation reserve are transferred to retained -Evaluation 18,269 3 18,266 17,648 19 1 7 ’® 29 GROSS CONTRIBUTION FROM ACTIVITIES 43,662 . 26,269 40,857 26.441 earnings. -at cost - - - 510 5 505 Add sundry income 4 13,978 3,322 4,457 3,322 , — under construction at cost 6,039 — 6,039 ■ 101 101 ’ 57 640 29,591 45,314 29,763 Investments ... , . -ru Plant, equipment, furniture, Deduct — overhead expenses 5 40,638 23,936 28,747 23,714 Investments are stated at market value at balance date, this being inclusive of accrued interest. The Directors valuation is fittings and leasehold . --- — amortisation of goodwill 849 — — — supported by independent professional advice. improvements 12,444 3,308 9,136 8.927 I,d/j nft nPFRATiNC ciiDPi ns 1k i c esc ic 5g7 6 049 Gains or losses on revaluation are taken direct to the revaluation reserve. Should accumulated losses exceedl accumulated Office and computer equipment 12,154 6,241 5,913 SURPLUS , 5,655 s’Soa gains on the revaluation of investments the debit balance arising in the reserve is charged against revenue in that period Vehicles 1,246 216 1,030 837 13 824 Deduct taxation 6 o, Income from investments includes both interest and gains and losses arising on realisation. Amounts previously accounted g 768 55 935 50 406 7,250 43,156 11,681 — 11,183 — for direct to the revaluation reserve are transferred to income on realisation. J 1 *■ 1 ” Add (deduct) share of associate company profit (loss) 7 80 (41) — — Goodwill on Consolidation „« NET OPERATING SURPLUS AFTER TAXATION 22 11,761 5,614 11,183 6,049 Goodwill on consolidation arises where the consideration paid for shares in a subsidiary company exceeds the net assets or . io ac IMS Extraordinary item-investments 17 6,425 (1,228) 6,425 (1,228) that subsidiary. Goodwill on consolidation is amortised over the ten years subsequent to each acquisition. 10. Investments Nominal Market Nominal Market NET SURPLUS AFTER TAXATION c..h«Mi a rv Comnanies Cost value value Cost AND EXTRAORDINARY ITEM 18 186 4,386 17,608 4,821 s<°oo) W»o> B $(000) $(000) $(000> Unrealised decrease in investment properties (623) — — — 7 United Building Society values Shares N.Z. Government securities 133,140 133,305 132,355 105.771 106.862 99.195 NET SURPLUS FOR THE YEAR INCLUDING Terminating shares Local authorities securities 18,740 18,548 18,816 16,826 16,627 14.650 UNREALISED GAINS (LOSSES) 17,563 4,386 17,608 Subscriptions are stated at the amount subscribed less unpaid fines and other charges. Government corporations Retained earnings 1 October 1985 30,064 25,678 30,499 25,678 Withdrawable profits represent accumulated profits to balance date payable on withdrawal of the shares. securities 8,127 o.UUU 0,12/ "“‘“engagement ar ' S ' ° n ‘ ranS^er °* 21 512 512 = Depos.tsw.th short term money RETAINED EARNINGS 30 SEPTEMBER 1986 16 48,139 .. .30,064 48,619 JO, 499 Bonus BaUoting * togelher wjth accumulated basic dividends t 0 balance date . life mey“e s O t f a?e C me U nts ng P °" CieS n °‘ eS ‘° "h 3 ™ 3 ' S ' atementS ‘° rm Part °‘ a " d are ‘° b “ read COn|UnC,IOn Wi,h . • "^XncesZm'residents of Lifecare villages includes the amount received in respect of the right to occupy residential village °‘ her 24d79~H ' tnese revenue suuemerus. unjts and portjon of tbe ( jf ecare contribution which is not yet required to be transferred to the lifecare trust. Consolidated Lifecare Trust NZ Government securities 133,611 133,805 132,826 105,771 106,862 99,195 . na ... a am oiidoiimadv nnunaMlcc The lifecare trust represents the funds held to provide the lifecare subsidies for those residents who have transferred from Local authorities securities 18,740 18,548 18,816 16,826 16.627 14,650 UNITED BUILDING SOCIETY AND SUBSIDIARY COMPANIES ' village units to resthomes. Government corporations gooo STATEMENTS OF ASSETS AND LIABILITIES De |seposits are stated at the amount deposited together with interest accrued to balance date. short term money 33074 35,654 33,074 10,000 10,000 10,000 AT 30 SEPTEMBER 1986 Provision for Deferred Income Commercial securities 3 2384 35 634 3 2 384 1097 6 274 1097 Consolidated United Building Society premiums written in respect of mortgage guarantees are brought to account over a five year period. The provision for deferred Bank e deoosits Pan ' eS 13,500 Note <tmnm «rnnm tmnm income represents the premiums applicable to future years. other 59 60 61 84 -85 86 ASSETS $(0 ° 0) $(00 ) s( °° o) s( °° o) Provision (or Dividends 243,356 2457629 242,744 166,830 168,353 158,098 Advances 8 691,180 517,636 681,177 517,636 The provision for dividends includes both the bonus dividend and the conversion bonus accrued in respect of bonus balloting Fixedassets 9 55,935 43,156 53,351 42,438 sbares . These amounts are only payable to shareholders on completion of the minimum contractual term of their shareholding. ' Investment properties 23,569 4,872 11. Subsidiary and Associate Companies Investments 10 242,744 158,098 240,365 158,098 Reserves . Details of the Society's investment in its associate and subsidiary companies is — Percentage ownership Goodwill on consolidation 10,715 — — — The revaluation reserve represents accumulated unrealised gains and losses arising from the revaluation of land and Allied Mortgage Guarantee Company „ Shares in subsidiary companies 11 — — 104 104 buildings, investment properties and investments. Limited Mortgage Guarantee and Mortgage Broking luu Advances to subsidiary companies — — 39,730 3,958 Retained earnings represent the accumulated surpluses of the Society and its associate and subsidiary companies. Beltons Real Estate Limited Real Estate Agents Interest in associate company 7 164 84 c United Lifecare Limited Retirement Village Owners Debtors and prepayments 7,311 10,230 5,477 Cost of Funds Attributable to Shares United Group Securities Limited Financial Services Cash 4,482 3,754 4.482 3,754 q o f f un( j s attributable to shares include — * United Realty World Limited Real Estate Sen/ices 1036 100 737,830 1,024,686 736,100 (i) withdrawable profits paid or allocated to terminating shares; . United Computers Limited Computer Services ™ arermire • GO the cost of ballot loan rights purchased during the year from terminating shareholders who were successful in ballots, Electronic Funds Transfer Limited Computer Services 3b LIABILITIES AND RESERVES /jjK the revaluation adjustment in respect of free of interest mortgages advanced during the year; , Sh“ . hH . 12 557,069 482,755 557,104 482,755 ($ Coated BußdKctety Deferred'taxation in SUbS I ‘ lary - 5,387 = (vi) prizes paid on bonus bailoting shares. WB6, Advances from residents of Lifecare villages 13 4,653 1,666 - - Feas charged For Premature Withdrawal . . , 12. Shares Lifecaretrust log 40 These fees represent savings withheld from shareholders who have withdrawn prior to completing the minimum contractual Details relating to the various classes of shares Deposits 14 191,514 3/4,/24 191,614 savings period. are- . . Provision fo'r dividends' 1 15 2 166 322 166 322 - Share class Provision for ballots won but not taken up 818 970 818 ' 970 T *fhecharge against profits includes both current and deferred tax using the liability method. Deferred tax reflects the effects 86,550 98,519 B ®’ s ® s Creditors and accrued expenses 27,292 21.4U9 21,004 2u,0u0 of timing differences resulting from different accounting and tax bases of recognising incomes and expenditures. Withdrawable profits 7,172 7,234 7,172 7,234 Bank overdrafts a.uuj W here a net future tax benefit arises in any year and is not covered by an existing deferred tax liability, the future tax benefit Redeemable preference shares 34,212 24,952 34,212 24,952 974,563 699,953 962,753 697,788 j s not recognised as an asset. Bonus balloting shares 429,127 351,982 429,127 351,9 Z5 Reserves Savings shares 8 oo 8 80 Retained earnings 16 a 3 9(c) Changes In Accounting Policies ■ . 557,069 482,755 557,104 482,755 Revaluation reserve 17 13,398 7,813 13,314 7,813 There have been no changes to the above accounting policies which have been applied on bases consistent with those used •» >— .i——1,036,100 737,830 1,024,686 736,100 in the previous year. 13. Advances from residents of Lifecare villages 3 ggg x 407 Commitments 18 Lifecare 664 259 — — Contingencies 19 4,653 1,666 — — The statement of accounting policies and notes to the financial statements form part of and are to be read in conjunction with NOTES TO TH EFI N ANCI AL STATEM ENTS » .u . a - .M nlt ... u these statements of assets and liabilities. IWI IV II IL I lIIRII Vini. UI ni uki L.I ii V Building Society H.F. REDMOND G.B. BATTERSBY C.S. JENKINS Income from Advances . $(000) $(000) $(000) $(000) Chairman Vice-Chairman Managing Director Thg lggg income i nc | uc j es the release of the free of interest mortgage revaluation adjustment amounting to $3,563(000) 14. Deposits (1985 $3,625(000)) relating to the principal repayments received during the year on free of interest mortgages. Deposits mature — oc-ico-, icnaai Wellington. New Zealand Within one year 357 - s ®l 16 December 1986 United Beyond one year 17,127 26,173 17,12/ 26,173 Consolidated Building Society 374,708 191,514 374,724 191,514 $(000) $(000) $(000) $(000) j 3J3 UNITED BUILDING SOCIETY AND SUBSIDIARY COMPANIES 2. | S ’ s « < X' from investments (IIS) (™) CONSOLIDATED STATEMENT OF SOURCES AND New Zealand Government securities 18.182 15,919 18,033 15,919 Balance 30 September 1986 166 322 166 322 INVESTMENT OF FUNDS Government corporetions securities 3 542 2,1 - 542 ’ - 16 ' Held Society andl subsidiaries 48,100 30,105 Vnoe Deposits with short-term money market 3,915 777 3,915 777 Share of associate company retained earnings YEAR ENDED 30 SEPTEMBER 1986 Commercial securities 6,728 3,314 6,728 3,314 (deficit) 39 (41) Nole 1986 Bank deposits 5,174 2,350 5,174 2,350 48,139 30,064 $(0 ° 0) Shares in companies 131 17 85 17 Reva | uation Reserve Funds were received during the year from — 2 BQ3 ™ other arq 04 599 Balance 1 October 1985 7,813 5,332 7.813 5,332 Shares and deposits 38 i 65 l 2£599 38,459 Transfers to revenue statement on realisation of Deduct withdrawals —' ' 3, Cost of Funds Attributable to Shares Investments (1,695) (4,788) (1,695) (4,788) Detailsof the cost of funds attributable to shares Reversal of prior revaluation surpluses on ’ Activities 20 are- properties being redeveloped (166) - (166) - Repayment of advances Terminating shares Surplus arising on revaluation of - Increase in creditors and accrued expenses Withdrawable profits allocated to shareholders 1,584 1,511 1,584 1,511 nvestments 8,120 3,560 8,120 3,560 Advances from residents of Lifecare villages 2 '?®? Cost of ballot loan rights purchased 2,496 2,704 2,496 2,704 Land and buildings 5,751 2,481 5,667 2.481 Increase in Lifecare trust fund 9 Free of interest mortgage revaluation 3,121 2,937 3,121 2,937 Transfer to (from) revenue statements as Net decrease in debtors and cash adjustment extraordinary items Increase in provision for deferred income Increase (decrease) in provision for meeting the cost of Net debit balance in respect of investments Increase in bank overdrafts . MiS ballots won but not taken up at balance date (151) (94) (151) (94) charged to revenue statement ~ I- 228 “ I- 228 Realisation of bank deposits 13 9c Discount on prepaid shares 4 2 4 2 Surplus arising on annual revaluation of Realisation of other investments Redeemable preference shares investments which reverses net debit balances rK49Ri Retained earnings acquired on transfer of engagements •22 2 Dividends 2,830 2,546 2,830 2,546 charged to revenue in previous years. (6,425) (6,425) 388,916 Bonus balloting shares Balance 30 September 1986 13,398 7,813 13,314 7,813 n d ._ Basic dividend 62,836 40,441 62,836 40, cr7 ——— ' 15 J26) j( (26) ConwlidMtei Funds available for investment during the year —— Savings shares ~ $(000) $(000) $(000) $(000) These funds were invested in- 257 , 780 Dividends 16 ig Commitments Advances . 27,840 75,054 52,504 £?i°s4 S^,BU , Contractual commitments in respect of capital New Zealand Government securities 1 ’ 914 expenditure 33,538 30,990 14,979 17,214 Local authorities securities g ' l27 United Commitments to provide mortgage finance in Government corporations securities 23,074 Consolidated Building Society respect of mortgages approved but not Money market deposits 27,322 1986 1985 1986 1985 yet paid out to members Commercial securities 1,287 $(000) $(000) $(000) $(000) pending completion of mortgage documents 83,858 16,921 83,858 16,921 Shares in companies 19,320 . Ci.nrtrv ‘ ‘ To the extent to which it is not provided for by the lifecare trust, United Lifecate Limited has a commitment to provide Investment properties . f h idi ri ndtransferofenßaEe ments 11,564 *• inclunes — subsidies for ongoing resthome care in respect of those resthome residents who have transferred from village units. Purchase of goodwill on acquisition of subsidiaries and transfer ot engagements — . Sundry income includes - g 72 572 Allied Mortgage Guarantee Company Limited has entered into commitments to fund and repurchase mortgages at '■ Commission 10,348 1.223 1,338 1,223 certain dates in the future in accordance with its normal course of business. • Summary of effects of the acquisition of subsidiaries and transfer of engagements. Fees charged for premature withdrawal 412 471 412 471 19. Contingencies orrtr»«c »nteiii„<. ei 7« nrm ri on«i loin Net assets acouired — iocq/i Mnrtoaoefees 823 274 823 274 A subsidiary company has guaranteed bank overdrafts totalling $176,000 (1985 — Nil). Advances 3 q 13 '329 Rent received 1.896 1,608 1,896 1,608 Legal claims totalling $290,000 (1985 - Nil) have been made against United Building Society or a subsidiary Investments i? 664 Valuationfees^ expenses <l ’?23 > “contingent liability exists in respect of the undertaking given to the Society’s terminating shareholders that they will be Goodwill 11,5 10 Deduct fees paid (134) (38) (134) (38) entitled to a free of interest mortgage (or its cash value) during the life of, or on termination of, their group. , Deferred taxation oenefit gn2 Gains on sale of — „„ . „ . ~ 1486 Debtors • 11 Pronerties 18 — 18 — 20. Funds Received From Activities 198 b Shares Other assets 80 — 80 — Details of funds received from activities during the year are — Deposits rtnam Equipment rental 336 416 336 416 Net operating surplus for the year per revenue statement . . 16,153 Provision for deferred income S?'2qm Other fees 867 277 356 277 Adjustments for items charged or credited in the revenue statement but not arising Creditors U (501) 3,322 4,457 3,322 from a movement of funds - Bank overdrafts r*si a——• ■ Depreciation • *oaq Retained earninßS on transfer of engagements 5. Overhead Expenses Amortisation of goodwill Ketamea earnings on uar s k k 15,392 Overhead expenses include - , co Adjustment relating to ballot leans not taken up (152} Consideration paid in cash Audit fees 208 97 153 92 Net f ree o f interest mortgage revaluation adjustment (442) Depreciation 3,122 3.065 2 ’ a? 3 qr Bonus dividend provided 347 Thpstetpmpnt of accounting policies and notes to the financial statements form part of and are to be read in conjunction with Directors; fees 91 95 91 9t> Conversion bonus provided (33) s J a J emen ; °! ac „f 'ocimpnt nf funds Directors retirement allowance 79 — 79 OQ ,„ Transfer from revaluation reserve — this statement of sources and investment Salaries, wages and superannuation. 15,091 8,839 12,127 Investments Administration and marketing 22,047 11,649 13,621 1 iqi Gain on sale of fixed assets (98) Loss on sale of assets — 191 ~ Funds received from activities 18,051 40,638 23,936 28,747 23 <-— 21. Transfer of Engagements c~.6. Taxation Effective 1 March 1986 the operations, assets and liabilities of the Hawkes Bay Mutual Building Society were transferred (a) The taxation charge for the year is calculated to United Building Society. as follows — 22. Acquisition of Subsidiaries During the year the following subsidiaries were acquired: pkms Net operating surplus 16,153 5,614 16,567 6,049 Allied Mortgage Guarantee Company Limited — fifteen months results included. AT ATEUEUT AC A i'll I INTINIi POLICIES Deduct permanent differences— Beltons Real Estate Limited — six months results included. . , . O I I CNICn I HvvvUli I HvU lncome from the release of the free of , cok Consolidated net operating surplus benefited from the acquisition of subsidianes during the year by $1,097(000). interest mortgage revaluation adjustment 3,563 3,625 3,563 3,625 (a^ Ge ™?!rnnunt?ngoolic'e?appropriate for the measurement and reporting of net result and financial position have been Deduct freest interest mortgage revaluation (3,121) (2,937) (3,121) ( 2 - 937 > General accounting policies appp n j us e historical cost method with the exception of free of interest mortgages, 442 688 442 688 *TA Tl IP liriinmr fnvestmentsandVropertles which have been revalued. Accrual acccounting is used to match expenses and revenues. Nonassessable items 138 - 92 - REPORT OF THE AUDITORS TO THE MEMBERS Gain on sale of properties and leases 4 55 4 55 (b) Particular Accounting Policies Non-deductible items (1.131) (98) (173) 12|) Qf UNITED BUILDING SOCIETY Consolidation .. . . -., tpmpnts incorD o rate the results and financial position of the United Building Society which is (547) §45 645 reg^teredbinder the Building. Societies Act 1965 together with its subsidiary companies and assorted companies wh.ch are Net operating surplus subject to taxation 16,700 4,969 16 202 5 404 registered under the Companies |idation of the resu | ts and financial position of subsidiary companies while DeduCt rec ° Bn,tion Z all the information and explanations that we have required In our opm.on proper accountmg records have been kept The purchase method has been used in tne_consoi laaiion o i resu i ts anc j financial position of associate companies. , 2s'■7 by the Society so far as appears from our examination of those records. # the equity method has been adopted for use in the inco po Deferred taxation at 48€ in the dollar 4 r 472 — 5,384 In our opinion, according to the best of our information and the explanations given to us, and as shown bjrthe said records rhi Thp dpfprrpd taxation liabilitv relates orincioallv to income accruals withdrawable profits on terminating shares and the financial statements as set out above provide the information required by the Building Societies Act 1965. Further, these include free of interest and an |nterest C tearinga a d n v C a e n S cesare 1 st a a , ted S at the original sign advanced pxlus to date, less repayments received. 6 Va ' U3,i ° n °’ ° f h lo^s PUrP ° SeS " dea '‘ have also examined the consolidated financial statements as set out above which incorporate the resuite and financiaf Free of interest mortgage advances tu^"aB,‘heeq^°|entgt a 8 ,‘ h e e q^° |ent g t 5 t h e average cost of funds to the Society during a P ermanent dlfferences - posits of the Unjted Building Society with those of its associate and subsidiary companies registered under the Companies (l) tee year e nded 30 September 1983 being the Society's first.year t t equivalent to the average ... . . opinion the consolidated financial statements give, using the method referred to above, a true and fair view of the state (ii) advances since 1 October 1982; are.discounted a the fime each advance made equ.va.ent Consohdated BuiWmg Soc.ety p and jts assocjate an£) subsidiary com p anie s at 30 September 1986 together with their results and s (°°°> $( sources and imestment ° f ,UfldS ,Or the year ended ° n ,hat ’■ SSStafftSSuw «1> - z z mmwmwi is made; and „ rfo , OP valuation adjustment relating to the principal repayments received during the year. Share of profit (loss) for year 8U Chartered Accountants (iii) the free of interest mortgage vateato i stmem^ iees g^ ern j un a re brought to account over a five year period. Retained earnings 30 September 1986 39 (41) - - (iv) premiums written inrespeci ui |‘ IU ned premiums on mortg a ges prematurely repaid is brought to Cost of shares in associate company 125 125 - — Christchurch, New Zealand Additionallya pro rata calculationor me uaia u h __ g 4 . 17 December 1986 ■ account, and included in current income. , • ■ 8. Advances 1 F V- I ■ fcsl'aSSß ’S® L<jlll(w4ll —mog —soj™ On the disposal of lanelandbuildings, r % ss on disposa! of the asset. Loans on shares 4,136 5,215 4,136 5,215 I MM the revenue statement and inclu s to redu ce the cost or v a lu a tion of the fixed assets to their estimated Other secured advances 2,641 3,073 2,641 3,073 ■WUNNII SWfllY [ Depreciation is charged on a me Unsecured advances 347 500 — 500 i residual value over expected economic fives as follows 5 i 7 , 636 681 177 517,636