Statement of Income and Expenditure for the Year Ended 31 March 2002
Note 2002 2001
$000 $000
Income:
Dividends - 20,350
Profit on sale of shares 2 - 353,769
Investments 2 7,621 (13,265)
7,621 360,854
Direct expenditure:
Fund management, custodian and advisory fees 739 111
6,882 360,743
Other expenditure 8 815 682
Surplus before tax 6,067 360,061
Taxation 4 - -
Net surplus 6,067 360,061
The net surplus has been allocated as follows:
Trust capital 7 - 283,000
Capital maintenance reserve 6 8,254 -
Investment reserve 6 - (128,300)
Charitable purposes reserve fund 6 - (18,131)
General reserve 6 - 99,000
Uncommitted surplus available for distribution (2,187) 124,492
6,067 360,061
Statement of Movement in Trust Funds for the Year Ended 31 March 2002
Total trust funds at beginning of year 487,536 192,904
Net surplus 6,067 360,061
Committed donations 5 (26,929) (10,886)
ASB Charitable Trust donation 6 - (54,543)
Total trust funds at end of year 466,674 487,536
The notes to these financial statements form part of and should be read in conjunction with this statement of income and expenditure and statement of movement in trust funds.
Balance Sheet as at 31 March 2002
Note 2002 2001
$000 $000
Source of funds-
Trust funds:
Capital 7 327,320 327,320
Capital maintenance reserve 6 8,254 -
General reserve 6 100,000 100,000
Retained surplus 31,100 60,216
466,674 487,536
Liabilities:
ASB Charitable Trust 82 76
Creditors 211 150
Committed donations 5 20,897 7,516
21,190 7,742
487,864 495,278


Note 2002 2001
$000 $000
Employment of funds-
Investments:
Managed funds 3 485,813 463,458
Other investments 3 1,875 31,672
487,688 495,130
Current assets:
Cash 35 8
Debtors 141 140
176 148
487,864 495,278
Approved on behalf of the board:
R. J. FINLAYSON S. K. PRIME
Trustee. Trustee.
Date: 27 May 2002. Date: 27 May 2002.
The notes to these financial statements form part of and should be read in conjunction with this balance sheet.
Statement of Cash Flows for the Year Ended 31 March 2002
2002 2001
$000 $000
Cash flows from operating activities-
Cash was provided from:
Dividends received - 20,350
Interest received on other investments 934 8,170
934 28,520
Cash was disbursed on:
Payment to suppliers, trustees and staff (154) (143)
Refunds to ASB Charitable Trust for the services of suppliers, trustees and staff (711) (518)
Fund management and advisory fees (622) -
(1,487) (661)
Net cash (outflow)/inflow from operating activities (553) 27,859
Cash flows from investing activities-
Cash was provided from:
Receipts from fund managers 9,500 -
Bond maturity 832 -
Net proceeds on sale of shares - 544,144
Decrease in term deposits - 3,589
Decrease in net charitable purposes reserve fund deposits - 1,084
10,332 548,817
Cash was disbursed on:
Transfers to fund managers (25,139) (485,000)
(25,139) (485,000)
Net cash (outflow)/inflow from investing activities (14,807) 63,817
Cash flows from funding activities-
Cash was disbursed on:
Donations to community organisations (13,548) (61,394)
Net cash outflow from funding activities (13,548) (61,394)
Net cash (outflow)/inflow from activities (28,908) 30,282
Add opening cash brought forward 30,306 24
Ending cash carried forward 1,398 30,306
Cash comprises:
Cash at bank 35 8
Call deposits 1,363 30,298
1,398 30,306
The notes to these financial statements form part of and should be read in conjunction with this statement of cash flows.
Reconciliation of Reported Surplus to Net Cash Flow from Operating Activities for the Year Ended 31 March 2002
2002 2001
$000 $000
Reported surplus 6,067 360,061
Items classified as investing activities:
Profit on sale of shares - (353,769)
- (353,769)
Add non-cash items:
Unrealised movement on bonds 30 3
30 3
Movements in working capital items:
Increase in creditors 61 137
Increase in debtors (1) (140)
Increase in ASB Charitable Trust 6 25
66 22
Fund managers' (income reinvested)/loss (6,716) 21,542
Net cash inflow from operating activities (553) 27,859
Notes to the Financial Statements for the Year Ended 31 March 2002
1. Statement of Accounting Policies
The ASB Bank Community Trust ("the trust") is the reporting entity. The trust was formed on 30 May 1988 through the creation of a trust deed in compliance with the Trustee Banks Restructuring Act 1988. Under the terms of the trust deed, the trust was settled with 60 million $1 fully paid ordinary shares in ASB Bank Limited representing 100% of the issued capital. As at 31 March 1988, the net tangible asset backing of those 60 million shares was $147,655,000. In 1989, 45 million shares were sold to the Commonwealth Bank of Australia for $252,000,000 which was then donated to the ASB Charitable Trust.
In October 2000, the remaining 15 million shares were sold to the Commonwealth Bank of Australia for $545,000,000.
The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Reliance is placed on the fact that the trust is a going concern. The financial statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993.
Basis of Preparing Consolidated Financial Statements
The financial statements comprise the trust and its subsidiaries. Subsidiaries are those entities controlled by the trust. The financial statements of subsidiaries are included in the financial statements using the purchase method of consolidations.
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.
Dividends
Dividends are recognised as income when they are received by the trust. They are recorded net of any 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 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:
2002 2001
This trust 50% 40%
ASB Charitable Trust 50% 60%
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.
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.

2002 2001
$000 $000
2. Income
Profit on sale of shares:
Realisation of shares in ASB Group Limited - 545,000
Book value of investment - (190,375)
Realisation expenses - (856)
- 353,769
Other investments:
Managed funds 6,716 (21,542)
Other income received 935 8,280
Investment loss (30) (3)
7,621 (13,265)
3. Investments
Shares in ASB Group Limited:
Balance as at 1 April - 190,375
Realisation of shareholding - (190,375)
Balance as at 31 March - -
In October 2000, the 25% shareholding in ASB Group Limited was sold for $545,000,000. The net proceeds attributable to the charitable purposes reserve fund, combined with other transactions during the period, was donated to the ASB Charitable Trust.
2002 2001
$000 $000
Managed by external managers:
Balance as at 1 April 463,458 -
Transfers to managers 15,639 485,000
Movement in market value 6,716 (21,542)
485,813 463,458
Investments managed by external managers comprise:
Cash, deposits and miscellaneous 56,533 62,329
Bonds 209,646 230,181
Equities 219,634 170,948
Portfolio total 485,813 463,458
Other investments-
These consist of securities and deposits managed in-house
Investments comprise:
Call deposits 1,363 30,298
Bonds 512 1,374
1,875 31,672
"Other investments" are managed in-house. Included in these are deposits, certain of which are subject to a right of set-off under the terms of the trust's banking agreement. There has been no set-off applied in the presentation of these accounts.
2002 2001
$000 $000
4. Taxation
Surplus before taxation 6,067 360,061
Net dividend and imputation credit adjustment (734) (20,350)
Investment revaluations for tax purposes 4,278 -
Capital gain on sale of shares - (353,769)
Income attributable to charitable purposes reserve fund - (1,212)
Non-deductible expenditure 590 465
Distribution to tax exempt beneficiaries (4,730) -
2002 2001
$000 $000
Prior year tax adjustment (5,996) -
Taxable loss brought forward (15,004) (199)
Taxable loss carried forward (15,529) (15,004)
Taxation charge @ 33% - -
5. Donations
For this year:
Committed and disbursed 8,168 4,159
Committed but not yet disbursed 19,182 7,059
Total donations approved 27,350 11,218
Donations written back (421) (332)
26,929 10,886
Committed but not yet disbursed:
Committed in previous years 1,828 457
Committed this year 19,069 7,059
20,897 7,516
6. Reserves
Capital maintenance reserve:
Balance as at 1 April - -
Allocation from surplus 8,254 -
Balance as at 31 March 8,254 -
General reserve:
Balance as at 1 April 100,000 1,000
Allocation from surplus - 99,000
Balance as at 31 March 100,000 100,000
Investment reserve:
Balance as at 1 April - 128,300
Allocation to surplus on realisation of shares - (128,300)
Balance as at 31 March - -
Charitable purposes reserve fund:
Balance as at 1 April - 18,131
Income - 3,111
Donations transferred to ASB Charitable Trust - 310
Profit on sale of shareholding - 32,991
Donation to ASB Charitable Trust - (54,543)
Balance as at 31 March - -
The charitable purposes reserve fund represented funds contributed by ASB Charitable Trust to enable the trust to participate in the issue of new equity by ASB Group Limited. In order to maintain the non taxable status of this reserve, the trust was required to segregate these funds contributed from ASB Charitable Trust and the income attributable thereto. There were also certain restrictions on the distribution of income from this fund.
7. Trust Capital
Balance as at 1 April 327,320 44,320
Allocation from surplus - 283,000
Balance as at 31 March 327,320 327,320
8. Other Expenditure
Audit fees 17 13
Facilities rental 58 26
Legal fees 26 48
Occupancy costs 24 24
Other operating costs 163 171
Public and statutory reporting 72 52
Staff expenses 342 263
Trustees' fees 82 68
Trustees' expenses 31 17
815 682
9. Subsidiaries
Name Interest Held Balance Date Principal Activity
ASB Trusts Amateur Public Sports Promotion Limited 100% 31 March Donations to amateur sport bodies
ASB Trusts Public Amenities Development Limited 100% 31 March Donations to public beautification bodies
These subsidiaries were incorporated on 29 March 2001. They have not traded since incorporation.
10. Financial Instruments
Currency Risk
The trust invests in securities that are denominated in foreign currencies and therefore, result in a currency risk. In order to minimise the currency risk, foreign currency assets are hedged.
2002 2001
$000 $000
Foreign currency denominated assets 296,926 274,943
Less foreign currency contracts 201,860 198,900
Unhedged exposure 95,066 76,043
Interest Rate Risk
The trust, through its fund managers, invests in securities that are subject to interest rate risk. The trust actively monitors this risk and changes asset allocations and maturity profiles accordingly.
Credit Risk
The trust, in the normal course of business, enters into arrangements with other parties. These arrangements give rise to credit risk for the trust and hence policies and procedures are maintained so that this risk is minimised. No collateral is required in respect of financial assets.
For all classes of financial assets held by the trust, the maximum credit risk exposure to the trust is the carrying value as disclosed in the financial statements at balance date.
Due to the diversification of the investment portfolio and the policies and procedures in place, there is no significant concentrations of credit risk.
Fair Values
All financial instruments are carried at market value.
11. Foreign Currency Monetary Assets
As at 31 March 2002, the trust had the following foreign currency monetary assets that were not hedged.
Foreign currency exposure-
Receivables stated in NZ$ equivalents: 2002 2001
$000 $000
U.S.A. & Canada 57,867 42,584
U.K. & Continental Europe 29,081 25,474
Japan & Far East 8,118 7,985
95,066 76,043
Audit Report
To the Trustees of the ASB Bank Community Trust:
We have audited the financial statements comprising the statement of income and expenditure, the statement of movements in trust funds, the balance sheet, the statement of cash flows and the notes to these financial statements. The financial statements provide information about the past financial performance of the trust and its financial position as at 31 March 2002. This information is stated in accordance with the accounting policies in the notes to these financial statements.
Trustees' Responsibilities
The trustees are responsible for the preparation of financial statements which give a true and fair view of the financial position of the trust as at 31 March 2002 and the results of its operations and cash flows for the year ended on that date.
Auditors' Responsibilities
It is our responsibility to express an independent opinion on the financial statements presented by the trustees and report our opinion.
Basis of Opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements.
It also includes assessing:
? the significant estimates and judgements made by the trustees in the preparation of the financial statements;
? whether the accounting policies are appropriate to the trust's circumstances, consistently applied and adequately disclosed.
We conducted our audit in accordance with New Zealand Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements.
Our firm carries out other assignments for the company in the area of taxation advice. The firm has no other interests in the trust.
Unqualified Opinion
We have obtained all the information and explanations we have required.
In our opinion, the financial statements:
? comply with New Zealand generally accepted accounting practice;
? give a true and fair view of the financial position of the trust as at 31 March 2002 and the results of its operations and cash flows for the year ended on that date.
Our audit was completed on 27 May 2002 and our unqualified opinion is expressed as at that date.
KPMG, Auckland.
-------
ASB Charitable Trust
Statement of Income and Expenditure for the Year Ended 31 March 2002
Note 2002 2001
$000 $000
Income:
Investments 3 2,456 (9,098)
Rent 8 8
Donation from ASB Bank Community Trust 3 - 54,543
2,464 45,453
Direct expenditure:
Fund management, custodian and advisory fees 1,604 2,171
860 43,282
Other expenditure 8 739 774
Net surplus 121 42,508
The net surplus has been allocated as follows:
Capital maintenance reserve 4 9,033 10,048
Uncommitted surplus available for distribution (8,912) 32,460
121 42,508
Statement of Movement in Trust Funds for the Year Ended 31 March 2002
Total trust funds at beginning of year 478,795 473,440
Net surplus 121 42,508
Committed donations 5 (30,404) (37,153)
Total trust funds at end of year 448,512 478,795
The notes to these financial statements form part of and should be read in conjunction with this statement of income and expenditure and statement of movement in trust funds.
Balance Sheet as at 31 March 2002
Note 2002 2001
$000 $000
Source of funds-
Trust funds:
Capital 6 251,786 251,786
Capital maintenance reserve 4 88,473 79,440
General reserve 4 100,000 100,000
Retained surplus 8,253 47,569
448,512 478,795
Liabilities:
Creditors 586 962
Committed donations 5 23,401 32,942
23,987 33,904
472,499 512,699
Employment of funds-
Investments:
Managed funds 2 469,050 510,163
Other investments 2 1,023 186
470,073 510,349
Note 2002 2001
$000 $000
Current assets:
ASB Bank Community Trust 82 76
Cash 28 7
Debtors 203 145
313 228
Fixed assets 7 2,113 2,122
472,499 512,699
Approved on behalf of the board:
R. J. FINLAYSON S. K. PRIME
Trustee. Trustee.
Date: 27 May 2002. Date: 27 May 2002.
The notes to these financial statements form part of and should be read in conjunction with this balance sheet.
Statement of Cash Flows for the Year Ended 31 March 2002
2002 2001
$000 $000
Cash flows from operating activities-
Cash was provided from:
Income received on other investments 564 2,662
Refunds of expenses by ASB Bank Community Trust 711 518
Net G.S.T. - 107
Receipts from rentals 8 8
Donation from ASB Bank Community Trust - 54,543
1,283 57,838
Cash was disbursed on:
Net G.S.T. (21) -
Payment to suppliers, trustees and staff (1,419) (1,301)
Fund management and advisory fees (1,931) (1,800)
(3,371) (3,101)
Net cash (outflow)/inflow from operating activities (2,088) 54,737
Cash flows from investing activities-
Cash was provided from:
Receipts from fund managers 43,000 22,000
Bond maturity 105 -
ASB Group Limited term loan - 61,067
43,105 83,067
Cash was disbursed on:
Purchase of fixed assets (107) (68)
Transfers to fund managers - (109,567)
(107) (109,635)
Net cash inflow/(outflow) from investing activities 42,998 (26,568)
Cash flows from funding activities-
Cash was disbursed on:
Donations to charitable organisations (39,945) (28,702)
Net cash outflow from funding activities (39,945) (28,702)
Net cash inflow/(outflow) from activities 965 (533)
Add opening cash brought forward 86 619
Ending cash carried forward 1,051 86
Cash comprises:
Cash at bank 28 7
Call deposits 1,023 79
1,051 86
The notes to these financial statements form part of and should be read in conjunction with this statement of cash flows.
Reconciliation of Reported Surplus to Net Cash Flow from Operating Activities for the Year Ended 31 March 2002
2002 2001
$000 $000
Reported surplus- 121 42,508
Add non-cash items:
Depreciation 116 66
Unrealised movement in bonds 2 2
118 68
Movements in working capital items:
(Decrease)/increase in creditors (376) 363
Increase in ASB Bank Community Trust (6) (25)
Increase in debtors (58) (131)
Decrease in other assets - 71
(440) 278
Fund managers' (income reinvested)/losses (1,887) 11,883
Net cash inflow from operating activities (2,088) 54,737
Notes to the Financial Statements for the Year Ended 31 March 2002
1. Statement of Accounting Policies
The ASB Charitable Trust ("the trust") is the reporting entity. The trust was formed on 31 May 1989 through the creation of a trust deed by the ASB Bank Community Trust and a donation of $252,000,000.
The measurement basis adopted is that of historical cost adjusted for the revaluation of certain assets. Reliance is placed on the fact that the trust is a going concern. The financial statements have been prepared in accordance with the requirements of the Financial Reporting Act 1993.
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:
2002 2001
This trust 50% 60%
ASB Bank Community Trust 50% 40%
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. 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 instrument 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.
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.
2002 2001
$000 $000
2. Investments
Managed by external managers:
Balance as at 1 April 510,163 434,480
Movement in market value 1,887 (11,883)
Transfers/(withdrawals) (43,000) 87,566
Balance as at 31 March 469,050 510,163
Investments managed by external managers comprise:
Cash, deposits and miscellaneous 49,097 46,991
Bonds 217,102 250,437
Equities 202,851 212,735
Portfolio total 469,050 510,163
Other investments comprise:
Call deposits 1,023 79
Bonds - 107
1,023 186
"Other investments" are managed in-house. Included in these are deposits, certain of which are subject to a right of set-off under the terms of the trust's banking agreement. There has been no set-off applied in the presentation of these accounts.
2002 2001
$000 $000
3. Income
Investments:
Managed funds 1,887 (11,883)
Other income received 571 629
Investment loss (2) (2)
Interest on ASB Group Limited term loan - 2,158
2,456 (9,098)
Donation from ASB Bank Community Trust
The net proceeds attributable to the charitable purposes reserve fund in respect of the sale of the shares in ASB Group Limited, combined with other transactions during 2001, was donated to the ASB Charitable Trust.
4. Reserves
Capital maintenance reserve:
Balance as at 1 April 79,440 69,392
Allocation from surplus 9,033 10,048
Balance as at 31 March 88,473 79,440
General reserve:
Balance as at 1 April 100,000 100,000
Balance as at 31 March 100,000 100,000
5. Donations
For this year:
Committed and disbursed 12,802 13,434
Committed but not yet disbursed 17,726 25,523
Total donations approved 30,528 38,957
Donations written back (124) (1,804)
30,404 37,153
Committed but not yet disbursed:
Committed in previous years 5,687 7,575
Committed this year 17,714 25,367
23,401 32,942
2002 2001
$000 $000
6. Trust Capital
Balance as at 1 April 251,786 251,786
Balance as at 31 March 251,786 251,786
7. Fixed Assets
2002 2001
Cost Accumulated Book Cost Accumulated Book
Depreciation Value Depreciation Value
Land and buildings 2,079 195 1,884 2,079 175 1,904
Vehicle, office equipment and furniture 666 437 229 723 505 218
2,745 632 2,113 2,802 680 2,122

2002 2001
$000 $000
8. Other Expenditure
Audit fees 17 20
Depreciation 58 40
Legal fees 16 23
Occupancy costs 24 34
Other operating costs 98 61
Public and statutory reporting 72 78
Staff expenses 343 390
Trustees' fees 82 102
Trustees' expenses 29 26
739 774
9. Statement of Cash Flows
The depreciation charged to the cash flow statement includes a sum of $58,229 (2001 - $26,497) on charged to the ASB Bank Community Trust as facilities rental.
10. Financial Instruments
Currency Risk
The trust invests in securities that are denominated in foreign currencies and therefore, result in a currency risk. In order to minimise the currency risk, foreign currency assets are hedged.
2002 2001
$000 $000
Foreign currency denominated assets 323,198 355,068
Less foreign currency contracts 221,077 248,052
Unhedged exposure 102,121 107,016
Interest Rate Risk
The trust, through its fund managers, invests in securities that are subject to interest rate risk. The trust actively monitors this risk and changes asset allocations and maturity profiles accordingly.
Credit Risk
The trust, in the normal course of business, enters into arrangements with other parties. These arrangements give rise to credit risk for the trust and hence policies and procedures are maintained so that this risk is minimised. No collateral is required in respect of financial assets.
For all classes of financial assets held by the trust, the maximum credit risk exposure to the trust is the carrying value as disclosed in the financial statements at balance date.
Due to the diversification of the investment portfolio and the policies and procedures in place, there is no significant concentrations of credit risk.
Fair Values
All financial instruments are carried at market value.
11. Foreign Currency Monetary Assets
As at 31 March 2002, the trust had the following foreign currency monetary assets that were not hedged.
Foreign currency exposure-
Receivables stated in NZ$ equivalents: 2002 2001
$000 $000
U.S.A. and Canada 62,161 59,908
U.K. and Continental Europe 31,249 35,925
Japan and Far East 8,711 11,183
102,121 107,016
Audit Report
To the Trustees of ASB Charitable Trust:
We have audited the financial statements comprising the statement of income and expenditure, the statement of movements in trust funds, the balance sheet, the statement of cash flows and the notes to these financial statements. The financial statements provide information about the past financial performance of the trust and its financial position as at 31 March 2002. This information is stated in accordance with the accounting policies in the notes to these financial statements.
Trustees' Responsibilities
The trustees are responsible for the preparation of financial statements which give a true and fair view of the financial position of the trust as at 31 March 2002 and the results of its operations and cash flows for the year ended on that date.
Auditors' Responsibilities
It is our responsibility to express an independent opinion on the financial statements presented by the trustees and report our opinion.
Basis of Opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing:
? the significant estimates and judgements made by the trustees in the preparation of the financial statements;
? whether the accounting policies are appropriate to the trust's circumstances, consistently applied and adequately disclosed.
We conducted our audit in accordance with New Zealand Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to obtain reasonable assurance that the financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated the overall adequacy of the presentation of information in the financial statements.
Our firm carries out other assignments for the company in the area of taxation advice. The firm has no other interests in the trust.
Unqualified Opinion
We have obtained all the information and explanations we have required.
In our opinion, the financial statements:
? comply with New Zealand generally accepted accounting practice;
? give a true and fair view of the financial position of the trust as at 31 March 2002 and the results of its operations and cash flows for the year ended on that date.
Our audit was completed on 27 May 2002 and our unqualified opinion is expressed as at that date.
KPMG, Auckland.
-------
A copy of the list of all distributions of income and capital approved by the ASB Bank Community Trust and
ASB Charitable Trust is available on request from ASB Trusts, P.O. Box 68-048, Newton, Auckland.