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1997 Annual Report

NOTE 1: STATEMENT OF ACCOUNTING POLICIES

Reporting Entity
The financial statements presented here for the reporting entity, the Securities Commission, are prepared pursuant to section 30 of the Securities Act 1978 and section 41 of the Public Finance Act 1989.
Measurement System
The accounting principles recognised as appropriate for the measurement and reporting of results and financial position on an historical cost basis have been applied with the exception that the library is periodically revalued.
Accounting Policies
1. Depreciation:
  Fixed Assets, other than the library, are shown at historical cost and have been depreciated on the following bases:
  - office furniture - 20% of diminishing value,
  - office equipment - straight line over 5 years,
  - leasehold improvements - straight line over 9 years.
2. Library:
  All library acquisitions are recorded at cost. The library is depreciated on a straight line basis over 10 years. The library is revalued to current market value every three years by an independent valuer. In the year that the periodic revaluation of the library is undertaken any difference between the depreciated value of the library and the current market value is recognised in the Asset Revaluation Reserve.
3. Short term deposits are shown at cost.
4. is accounted for by the net method.
5. financial instruments are recognised in the Statement of Financial Position.
Changes in Accounting Policies
There have been no changes in accounting policies. All policies have been applied on bases consistent with those used last year.

Note 2: Remuneration Of Members of the Commission

	1997 $	1996 $
Members' Fees	122,749	170,324
Chairman's Remuneration
(Salary, Superannuation and Allowance)	199,575	192,100
Total Remuneration paid to Members of the Commission	322,324	362,424

Note 3: Reconciliation Statement of Financial Performance with Statement of Cash Flows

	1997 $	1996 $
Reported Surplus (Deficit)	(113,886)	87,002
Add Non Cash Item:
Depreciation	76,473	69,075
Add Investing Item:
Loss (Profit) on Sale of Fixed Assets	(889)	817
Movements In Working Capital
Increase (Decrease) in Creditors	(19,936)	20,647
Increase in Receivables	(1,730)	(15,291)
Decrease in Prepayments	1,755	22,893
	(19,911)	28,249
Net Cash inflow (outflow) from Operating Activities	$(58,213)	185,143

Note 4: Fixed Assets

		1997
	Cost/ Valuation	Depreciation	Net Book Value
Assets at cost
Office Equipment	243,223	128,828	114,395
Office Furniture	71,062	42,370	28,692
Leasehold Improvements	160,491	49,353	111,138
Assets at Valuation Plus Additions at Cost
Library	175,209	33,067	142,142
	$649,985	$253,618	$396,367

		1996
	Cost/ Valuation	Depreciation	Net Book Value
Assets at cost
Office Equipment	213,611	92,259	121,352
Office Furniture	57,820	40,301	17,519
Leasehold Improvements	157,089	31,708	125,381
Assets at Valuation Plus Additions at Cost
Library	155,460	15,546	139,914
	$583,980	$179,814	$404,166

The library was last revalued on 30 June 1995 by Mrs. S. Lambert of Lamberts Library Services.

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Securities Commission, New Zealand

12th floor, Reserve Bank Building, 2 The Terrace, PO Box 1179 Wellington, New Zealand

+64 4 472 9830 phone +64 4 472 8076 fax

Inquiries to seccom@seccom.govt.nz