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Annual Report 30 June 1998

Title Page Statement of Purpose Notable Events Members Chairman's Review Chief Executive's Report Work Programme 1998/99 Financial Statements Statement of Objectives Statement of Service Performance Report of Audit Office Staff

Financial Statements Statement of Responsibility Statement of Financial Performance Statement of Financial Position Statement of Movements in Equity Statement of Cash Flows Notes to the Financial Statements 1 Notes to the Financial Statements 2

Notes to the Financial Statements

In accordance with the Statement of Accounting Policies Note 1 (c) (ii), the library has been revalued at 30 June 1998 to a current value of $162,877 on the basis of a valuation report compiled by Mrs S Lambert of Lambert's Library Services. After charging $20,424 depreciation during the year $12,126 was credited to the Asset Revaluation Reserve at 30 June 1998

Note 6: Employee Entitlements

Creditors and Accruals include employee annual leave entitlements amounting to $47,805.

Note 7: Disclosure of Cash Flows

The cash flows relating to the Commission's investing activities have been netted off in the Statement of Cash Flows. The amounts involved are held in short-term deposits which are rolled over frequently through the year.

Note 8: Financial Instruments

1. Credit Risk
   Financial instruments which potentially subject the Commission to credit risk consist of bank balances, bank short-term deposits and accounts receivable. The Commission's investments are deposited with a registered bank in New Zealand. The Commission does not require collateral or security to support financial instruments. There is no significant concentration of credit risk pertaining to accounts receivable.
   
   
2. Fair Values
   All financial instruments are recognised in the Statement of Financial Position and are stated at fair values.

Note 9: Lease Commitments

The Commission has the following operating lease commitments, which are subject to review under the terms of the leases, with terms of more than one year:

	1998 $	1997 $
- not later than one year	205,000	195,000
- later than one year and not later than two years	205,000	195,000
- later than two years and not later than five years	615,000	585,000
- later than five years	34,000	227,000

Note 10: Capital Commitments

Estimated capital expenditure contracted for at balance date but not provided for: $130,847 (1997 Nil).

Note 11: Contingent Liabilities

There are no contingent liabilities at balance date (1997 Nil).

Note 12: Transactions with Related Parties

During the year the Securities Commission:

• Paid fees for professional services to Chapman Tripp Sheffield Young, a legal firm in which D J Stock and S L Franks, Members of the Commission, are partners. The fees, totalling $41,045, were charged on normal commercial terms, and related to legal drafting in the course of the review of all exemption notices carried out before the Securities Amendment Act 1996 came into force, and
  
  
• Paid fees of $2,143 to A N Frankham, a Member of the Commission, for specialist services relating to a review, commissioned by the Ministry of Commerce, of the Securities Commission's operations.

There were no amounts outstanding at year end relating to these transactions. No related party debts have been written off or forgiven during the year.