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PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

STATEMENT BY THE GENERAL COUNCIL

In our opinion, the accompanying financial statements set out on pages 4 to 36 are properly drawn up so as to give a true and fair view of the state of affairs of the Association as at 31st December 2012 and of the results and receipts and payments for the financial year ended on that date in accordance with the Malaysian Financial Reporting Standards and the provisions of the rules and regulations of the Association.

On Behalf of the General Council,

Dato’ Woo Ser Chai

President

Foo Chee Keong

Secretary General

Wong Siew Chin

Treasurer

Kuala Lumpur

Date:

1

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

(Incorporated in Malaysia)

Report on the Financial Statements

We have audited the financial statements of Persatuan Hainan Dan Wilayah Persekutuan, which comprise the statements of financial position as at 31st December 2012, and the statements of comprehensive income and the statements of receipts and payments for the financial year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 4 to 36.

General Council’s Responsibility for the Financial Statements

The General Council of the Association is responsible for the preparation of financial statements so as to give a true and fair view in accordance with the Malaysian Financial Reporting Standards, and the requirements of the rules and regulations of the Association. The General Council are also responsible for such internal controls as the General Council determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgement, including the assessment of risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal controls relevant to the Association’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the General Council, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

2

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Association as at 31st December 2012 and of their financial performance and cash flows for the financial year then ended in accordance with the Malaysian Financial Reporting Standards, International Financial Reporting Standards and the rules and regulations of the Association.

Report on other legal and regulatory requirements

In accordance with the requirements of the rules and regulations of the Association, we also report that in our opinion the accounting and other records and the registers of the Association have been properly kept in accordance with the Association’s rules and regulations.

Other matters

This report is made solely to the members of the Association, as a body and for no other purpose. We do not assume responsibility to any other person for the contents of this report.

Baker Tilly Monteiro Heng

Heng Ji Keng

No. AF 0117

No. 578/05/14 (J/PH)

Chartered Accountants

Partner

Kuala Lumpur

Date:

3

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

STATEMENTS OF FINANCIAL POSITION

AS AT 31ST DECEMBER 2012

 

 

 

 

Elimination

 

 

 

 

 

 

 

on Inter

 

 

 

 

 

Building

Operating

Funds'

31.12.2012

31.12.2011

1.1.2011

 

 

Fund

Funds

Balances

Total

Total

Total

 

Note

RM

RM

RM

RM

RM

RM

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Property, plant and equipment

4

3,876,019

7,729,594

-

11,605,613

11,713,784

11,823,684

Investment properties

5

-

961,075

-

961,075

977,350

993,625

Other investment

6

-

6,000

-

6,000

6,000

6,000

Development expenditures

7

521,825

-

-

521,825

521,825

-

 

 

 

 

 

 

 

 

 

 

4,397,844

8,696,669

 

13,094,513

13,218,959

12,823,309

Current assets

 

 

 

 

 

 

 

Development expenditures

 

 

 

 

 

 

 

7

-

-

-

-

-

521,825

Inventories

8

-

57,108

-

57,108

76,821

49,876

Other receivables, deposits and

 

 

 

 

 

 

 

prepayments

9

-

1,959,085

-

1,959,085

1,848,468

1,895,010

Inter-fund balances

 

442,943

25,291,154

(25,734,097)

-

-

-

Deposits placed with

 

 

 

 

 

 

 

licensed banks

10

5,304,799

35,008,753

-

40,313,552

34,932,469

31,289,579

Cash and bank balances

 

2,281

684,447

-

686,728

791,520

504,635

 

 

 

 

 

 

 

 

 

 

5,750,023

63,000,547

(25,734,097)

43,016,473

37,649,278

34,260,925

TOTAL ASSETS

 

 

 

 

 

 

 

 

10,147,867

71,697,216

(25,734,097)

56,110,986

50,868,237

47,084,234

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to members

 

 

 

 

 

 

of the Association

 

 

 

 

 

 

 

Accumulated funds

11

5,797,761

47,479,542

-

53,277,303

48,053,560

44,367,559

General reserve funds

 

-

685,000

-

685,000

685,000

685,000

Scholarship reserve fund

 

-

152,197

-

152,197

152,197

152,197

Total equity

 

 

 

 

 

 

 

 

5,797,761

48,316,739

-

54,114,500

48,890,757

45,204,756

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other payables, deposits and

 

 

 

 

 

 

 

accruals

12

-

1,944,834

-

1,944,834

1,943,523

1,836,298

Inter-fund balances

 

4,350,106

21,383,991

(25,734,097)

-

-

-

Tax payable

 

-

51,652

-

51,652

33,957

43,180

 

 

 

 

 

 

 

 

 

 

4,350,106

23,380,477

(25,734,097)

1,996,486

1,977,480

1,879,478

TOTAL EQUITY AND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

10,147,867

71,697,216

(25,734,097)

56,110,986

50,868,237

47,084,234

 

 

 

 

 

 

 

 

The accompanying notes form an integral part of these financial statements.

4

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012

 

Building

Operating

2012

2011

 

Fund

Funds

Total

Total

 

RM

RM

RM

RM

INCOME

 

 

 

 

Activities income

-

3,556,918

3,556,918

3,374,241

Dividend income

-

900

900

720

Donations

-

6,461,478

6,461,478

6,428,750

Entrance fees and members'

 

 

 

 

subscriptions

-

12,250

12,250

14,745

Deposit interest

163,321

1,058,767

1,222,088

1,008,064

Rental income

-

1,100,116

1,100,116

1,099,091

 

 

 

 

 

 

163,321

12,190,429

12,353,750

11,925,611

Less:

 

 

 

 

 

 

 

 

EXPENDITURE

 

 

 

 

Activities expenses

-

1,942,571

1,942,571

1,862,513

Annual General Meeting expenses

-

92,341

92,341

52,219

Assessment and quit rent

-

47,561

47,561

47,547

Audit fee

 

 

 

 

- current year

-

30,000

30,000

28,000

- prior year

-

2,000

2,000

5,000

Bank charges

10

17,694

17,704

16,500

Condolences and compliments

-

11,569

11,569

9,246

Depreciation

 

 

 

 

- property, plant and equipment

-

197,334

197,334

200,107

- investment properties

-

16,275

16,275

16,275

Donations

-

454,890

454,890

441,601

Electricity

-

245,618

245,618

254,148

Water

-

51,906

51,906

52,868

Entertainment

-

6,390

6,390

12,540

Insurance

-

52,178

52,178

52,054

International Organisation for

 

 

 

 

Standardisation expenses

-

19,598

19,598

38,629

 

 

 

 

 

Sub-total carried forward

10

3,187,925

3,187,935

3,089,247

5

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012 (Continued)

 

Building

Operating

2012

2011

 

Fund

Funds

Total

Total

 

RM

RM

RM

RM

Sub-total brought forward

10

3,187,925

3,187,935

3,089,247

Legal and professional fees

-

1,350

1,350

12,850

Medical expenses

-

8,454

8,454

13,121

Meeting expenses

-

6,295

6,295

4,314

Newspapers and periodicals

-

3,142

3,142

2,398

Office refreshments

-

2,792

2,792

2,397

Postages, printing and stationery

-

45,681

45,681

46,003

Praying expenses

-

1,179,607

1,179,607

1,017,684

Printing of magazine

-

20,928

20,928

42,068

Property, plant and equipment written off

-

-

-

1

Rental

-

11,400

11,400

11,400

Repairs and maintenance

-

212,753

212,753

199,510

Staff costs

 

 

 

 

- allowances

-

19,070

19,070

13,510

- bonus

-

218,606

218,606

177,848

- Employees' Provident Fund

-

178,887

178,887

165,733

- SOCSO

-

19,407

19,407

19,526

- overtime

-

59,192

59,192

57,909

- salaries

-

1,326,483

1,326,483

1,298,123

Subscriptions

-

9,207

9,207

18,174

Telephone

-

28,245

28,245

23,801

Upgrading expenses

-

373,756

373,756

1,828,765

Web design expenses

-

17,370

17,370

19,420

 

 

 

 

 

 

10

6,930,550

6,930,560

8,063,802

 

 

 

 

 

SURPLUS BEFORE TAXATION

163,311

5,259,879

5,423,190

3,861,809

Taxation (Note 13)

-

(199,447)

(199,447)

(175,808)

 

 

 

 

 

SURPLUS AFTER TAXATION (Note 11)

163,311

5,060,432

5,223,743

3,686,001

 

 

 

 

 

The accompanying notes form an integral part of these financial statements.

6

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

STATEMENTS OF RECEIPTS AND PAYMENTS

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012

 

 

 

Elimination

 

 

 

 

 

on Inter

 

 

 

Building

Operating

Funds'

2012

2011

 

Fund

Funds

Transfer

Total

Total

 

RM

RM

RM

RM

RM

Cash and bank balances

 

 

 

 

 

as at 1st January

2,291

789,229

-

791,520

504,635

RECEIPTS

 

 

 

 

 

 

 

 

 

 

Activities income

-

3,068,855

-

3,068,855

2,623,654

Advance receipts

-

896,149

-

896,149

934,801

Deposits received

-

96,500

-

96,500

94,000

Dividend received

-

900

-

900

720

Donations received

-

6,036,542

-

6,036,542

6,347,158

Deposit interest

-

31,218

-

31,218

19,443

Entrance fees and

 

 

 

 

 

members' subscriptions

-

12,050

-

12,050

13,795

Inter-fund transfers

-

1,478,081

(1,478,081)

1,478,081

-

Rental income

-

1,097,655

-

1,097,655

1,094,868

Other payables

-

8,300

-

8,300

1,150

Other receivables

-

28,928

-

28,928

31,555

Study loan repayment

-

177,637

-

177,637

181,953

Withdrawal of deposits placed

 

 

 

 

 

with license banks

-

-

-

-

124,141

Total receipts

 

 

 

 

 

-

12,932,815

(1,478,081)

12,932,815

11,467,238

Less:

 

 

 

 

 

 

 

 

 

 

PAYMENTS

 

 

 

 

 

Accruals

-

64,447

-

64,447

48,174

Activities expenses

-

1,733,058

-

1,733,058

1,616,628

Annual General Meeting expenses

-

92,341

-

92,341

52,219

Assessment and quit rent

-

47,561

-

47,561

47,547

Audit fee

-

2,000

-

2,000

5,000

Bank charges

10

17,695

-

17,705

16,501

Condolences and compliments

-

11,569

-

11,569

9,246

Development expenditure

-

-

-

-

-

Deposit refundable

-

87,818

-

87,818

86,320

Donations

-

441,290

-

441,290

438,101

Electricity

-

245,617

-

245,617

229,828

Water

 

51,907

 

51,907

52,868

Entertainment

-

6,391

-

6,391

12,540

Income tax instalments

-

181,752

-

181,752

185,031

Insurance

-

41,865

-

41,865

24,749

Inter-fund transfers

-

1,478,081

(1,478,081)

1,478,081

-

International Organisation for

 

 

 

 

 

Standardisation expenses

-

19,598

-

19,598

38,629

Sub-total carried forward

 

 

 

 

 

10

4,522,990

(1,478,081)

4,523,000

2,863,381

7

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

STATEMENTS OF RECEIPTS AND PAYMENTS

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012 (Continued)

 

 

 

Elimination

 

 

 

 

 

on Inter

 

 

 

Building

Operating

Funds'

2012

2011

 

Fund

Funds

Transfer

Total

Total

 

RM

RM

RM

RM

RM

Sub-total brought forward

10

4,522,990

(1,478,081)

4,523,000

2,863,381

Legal and professional fees

-

1,350

-

1,350

12,850

Medical expenses

-

8,454

-

8,454

13,121

Meeting expenses

-

6,295

-

6,295

4,314

Newspapers and periodicals

-

3,142

-

3,142

2,398

Office refreshments

-

2,792

-

2,792

2,397

Placement of fixed deposits

-

4,200,000

-

4,200,000

2,787,216

Praying expenses

-

1,058,769

-

1,058,769

911,733

Postages, printing and stationery

-

45,681

-

45,681

39,140

Prepayments

-

333,588

-

333,588

193,400

Purchase of property, plant

 

 

 

 

 

and equipment

-

89,163

-

89,163

84,858

Repairs and maintenance

-

187,636

-

187,636

191,318

Rental

-

11,400

-

11,400

11,400

Printing of magazine

-

20,928

-

20,928

42,068

Staff costs

 

 

 

 

 

- allowances

-

18,534

-

18,534

12,882

- bonus

-

218,606

-

218,606

177,848

- Employees' Provident Fund

-

178,887

-

178,887

165,733

- SOCSO

-

19,407

-

19,407

19,526

- overtime

-

44,487

-

44,487

46,411

- salaries

-

1,326,482

-

1,326,482

1,298,123

Stock

-

128,262

-

128,262

172,113

Study loan

-

170,000

-

170,000

190,000

Sundry deposit

-

-

-

-

300

Other payables

-

13,414

-

13,414

50,744

Subscriptions

-

9,208

-

9,208

18,174

Telephone

-

28,245

-

28,245

23,801

Upgrading expenses

-

372,508

-

372,508

1,825,684

Web design expenses

-

17,370

-

17,370

19,420

Total payments

 

 

 

 

 

10

13,037,598

(1,478,081)

13,037,608

11,180,353

NET CASH (OUTFLOW)/INFLOW

 

 

 

 

 

(10)

(104,783)

-

(104,793)

286,885

Cash and bank balances

 

 

 

 

 

 

 

 

 

 

as at 31st December

2,281

684,446

-

686,727

791,520

ANALYSIS OF CASH AND CASH

 

 

 

 

 

 

 

 

 

 

EQUIVALENTS:

 

 

 

 

 

Cash and bank balances

2,281

684,446

-

686,727

791,520

 

 

 

 

 

 

The accompanying notes form an integral part of these financial statements.

8

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

NOTES TO THE FINANCIAL STATEMENTS

1.PRINCIPAL ACTIVITIES

The Association is a non-profit organisation registered under the Societies Act, 1966 with the objects of promoting friendly relations, economy, culture, education and welfare among its members, and of managing the affairs of the Thean Hou Temple.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1Basis of Preparation

The financial statements of the Association have been prepared in accordance with the

Malaysian Financial Reporting Standards (“MFRSs”), International Financial Reporting

Standards and the requirements of the Companies Act, 1965 in Malaysia.

The financial statements of the Association have been prepared under the historical cost basis, except as disclosed in the significant accounting policies in Note 2.3 to the financial statements.

The financial statements of the Association for the financial year ended 31st December 2012 are the first set of financial statements prepared in accordance with the MFRSs, including MFRS 1 ‘First-time Adoption of MFRSs’. In the previous financial year, the financial statements of the Association were prepared in accordance with the Financial

Reporting Standards (“FRSs”) in Malaysia.

The preparation of financial statements in conformity with MFRSs requires the use of certain critical accounting estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of the revenue and expenses during the reporting period. It also requires directors to exercise their judgment in the process of applying the Association’s accounting policies. Although these estimates and judgment are based on the directors’ best knowledge of current events and actions, actual results may differ.

The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3 to the financial statements.

9

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.2New, Revised and Amendments/Improvements to Accounting Standards and IC Int

(a)Explanation of Transition to MFRSs

In conjunction with the planned convergence of FRSs with International Financial Reporting Standards as issued by the International Accounting Standards Board on 1st January 2012, the Malaysian Accounting Standards Board (“MASB”) had on 19th November 2011 issued a new MASB approved accounting standards, MFRSs

(“MFRSs Framework”) for application in the annual periods beginning on or after 1st

January 2012.

The MFRSs Framework is mandatory for adoption by all Entities Other Than Private Entities for annual periods beginning on or after 1st January 2012, with the exception of entities subject to the application of MFRS 141 Agriculture and/or IC Int 15

Agreements for the Construction of Real Estate (“Transitioning Entities”). The

Transitioning Entities are given an option to defer adoption of the MFRSs framework to financial periods beginning on or after 1st January 2014. Transitioning Entities also includes those entities that consolidate or equity account or proportionately consolidate another entity that has chosen to continue to apply the FRSs framework for annual periods beginning on or after 1st January 2012.

Accordingly, the Association which are not the Transitioning Entities have adopted the MFRSs framework including MFRS 1 First-time Adoption of MFRSs for the current financial year ended 31st December 2012.

MFRS 1 requires comparative information to be restated as if the requirements of MFRSs effective for annual periods beginning on or after 1st January 2012 have always been applied, except when MFRS 1 allows certain elective exemptions from such full retrospective application or prohibits retrospective application of some aspects of MFRSs.

The Association have consistently applied the same accounting policies in its opening MFRSs statement of financial position as at 1st January 2011 (date of transition) and throughout all years presented, as if these policies had always been in effect.

As at 31st December 2012, all FRSs issued under the existing FRSs framework are equivalent to the MFRSs issued under MFRSs framework except for differences in relation to the transitional provisions, the adoption of MFRS 141 Agriculture and IC Int 15 Agreements for the Construction of Real Estate as well as differences in effective dates contained in certain of the existing FRSs.

The adoption of the MFRSs for the current financial year did not result in any changes in accounting policies and material adjustments to the Association’s statements of financial position, statements of comprehensive income and statements of cash flows which are reported in accordance with the previous FRSs.

10

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.2New, Revised and Amendments/Improvements to Accounting Standards and IC Int (Continued)

(b)New, revised, amendments/improvement to accounting standards and IC Int that are issued, but not yet effective and have not been early adopted

The Association have not adopted the following new and revised MFRSs, amendments/improvements to MFRSs, new IC Int and amendments to IC Int that have been issued as at the date of authorisation of these financial statements but are not yet effective for the Association:-

 

 

Effective for

 

 

financial periods

 

 

beginning on

 

 

or after

New MFRSs

 

 

MFRS 9

Financial Instruments

1 January 2015

MFRS 10

Consolidated Financial Statements

1 January 2013

MFRS 11

Joint Arrangements

1 January 2013

MFRS 12

Disclosure of Interests in Other Entities

1 January 2013

MFRS 13

Fair Value Measurement

1 January 2013

Revised MFRSs

 

MFRS 119

Employee Benefits

1 January 2013

MFRS 127 Separate Financial Statements

1 January 2013

MFRS 128 Investments in Associates and Joint

1 January 2013

 

Ventures

 

Amendments/Improvements to MFRSs

 

MFRS 1

First-time Adoption of Malaysian Financial

1 January 2013

 

Reporting Standards

 

MFRS 7

Financial Instruments: Disclosures

1 January 2013

MFRS 10

Consolidated Financial Statements

1 January 2013

 

 

and 1 January 2014

MFRS 11

Joint Arrangements

1 January 2013

MFRS 12

Disclosure of Interests in Other Entities

1 January 2013

 

 

and 1 January 2014

MFRS 101

Presentation of Financial Statements

1 July 2012

 

 

and 1 January 2013

MFRS 116

Property, Plant and Equipment

1 January 2013

MFRS 127

Separate Financial Statements

1 January 2014

MFRS 132

Financial Instruments: Presentation

1 January 2013

 

 

and 1 January 2014

MFRS 134

Interim Financial Reporting

1 January 2013

11

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.2New, Revised and Amendments/Improvements to Accounting Standards and IC Int (Continued)

(b)New, revised, amendments/improvement to accounting standards and IC Int that are issued, but not yet effective and have not been early adopted (Continued)

 

 

Effective for

 

 

financial periods

 

 

beginning on

 

 

or after

New IC Int

 

 

IC Int 20

Stripping Costs in the Production Phase of a

1 January 2013

 

Surface Mine

 

Amendments to IC Int

 

IC Int 2

Members' Shares in Co-operative Entities &

1 January 2013

 

Similar Instruments

 

A brief discussion on the above significant new and revised MFRSs, amendments/improvements to MFRSs, new IC Int and amendments to IC Int are summarised below. Due to the complexity of these new standards, the financial effects of their adoption are currently still being assessed by the Association.

MFRS 9 Financial Instruments

MFRS 9 specifies how an entity should classify and measure financial assets and financial liabilities.

This standard requires all financial assets to be classified based on how an entity manages its financial assets (its business model) and the contractual cash flow characteristics of the financial asset. Financial assets are to be initially measured at fair value. Subsequent to initial recognition, depending on the business model under which these assets are acquired, they will be measured at either fair value or at amortised cost.

In respect of the financial liabilities, the requirements are generally similar to the former MFRS 139 Financial Instruments: Recognition and Measurement. However, this standard requires that for financial liabilities designated as at fair value through profit or loss, changes in fair value attributable to the credit risk of that liability are to be presented in other comprehensive income, whereas the remaining amount of the change in fair value will be presented in the profit or loss.

MFRS 10 Consolidated Financial Statements and MFRS 127 Separate Financial Statements (Revised)

MFRS 10 replaces the consolidation part of the former MFRS 127 Consolidated and Separate Financial Statements. The revised MFRS 127 will deal only with accounting for investment in subsidiaries, joint ventures and associates in the separate financial statements of an investor and requires the entity to account for such investments either at cost, or in accordance with MFRS 9.

12

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.2New, Revised and Amendments/Improvements to Accounting Standards and IC Int (Continued)

(b)New, revised, amendments/improvement to accounting standards and IC Int that are issued, but not yet effective and have not been early adopted (Continued)

MFRS 10 Consolidated Financial Statements and MFRS 127 Separate Financial Statements (Revised) (Continued)

MFRS 10 brings about convergence between MFRS 127 and IC Int 12 Consolidation- Special Purpose Entities, which interprets the requirements of MFRS 10 in relation to special purpose entities. MFRS 10 introduces a new single control model to identify a parent-subsidiary relationship by specifying that “an investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee”. It provides guidance on situations when control is difficult to assess such as those involving potential voting rights, or in circumstances involving agency relationships, or where the investor has control over specific assets of the entity, or where the investee entity is designed in such a manner where voting rights are not the dominant factor in determining control.

MFRS 11 Joint Arrangements

MFRS 11 supersedes the former MFRS 131 Interests in Joint Ventures. Under MFRS 11, an entity accounts for its interest in a jointly controlled entity based on the type of joint arrangement, as determined based on an assessment of its rights and obligations arising from the arrangement. There are two types of joint arrangement namely joint venture or joint operation as specified in this new standard. A joint venture recognises its interest in the joint venture as an investment and account for it using the equity method. The proportionate consolidation method is disallowed in such joint arrangement. A joint operator accounts for the assets, liabilities, revenue and expenses related to its interest directly.

MFRS 12 Disclosures of Interests in Other Entities

MFRS 12 is a single disclosure standard for interests in subsidiary companies, joint ventures, associated companies and unconsolidated structured entities. The disclosure requirements in this MFRS are aimed at providing standardised and comparable information that enable users of financial statements to evaluate the nature of, and risks associated with, the entity’s interests in other entities, and the effects of those interests on its financial position, financial performance and cash flows.

MFRS 13 Fair Value Measurement

MFRS 13 defines fair value and sets out a framework for measuring fair value, and the disclosure requirements about fair value. This standard is intended to address the inconsistencies in the requirements for measuring fair value across different accounting standards. As defined in this standard, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

13

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.2New, Revised and Amendments/Improvements to Accounting Standards and IC Int (Continued)

(b)New, revised, amendments/improvement to accounting standards and IC Int that are issued, but not yet effective and have not been early adopted (Continued)

MFRS 128 Investments in Associates and Joint Ventures (Revised)

This revised MFRS 128 incorporates the requirements for accounting for joint ventures into the same accounting standard as that for accounting for investments in associated companies, as the equity method was applicable for both investments in joint ventures and associates. However, the revised MFRS 128 exempts the investor from applying equity accounting where the investment in the associate or joint venture is held indirectly via venture capital organisations or mutual funds and similar entities. In such cases, the entity shall measure the investment at fair value through profit or loss, in accordance with MFRS 9.

2.3Summary of Significant Accounting Policies

(a)Basis of Presentation

The financial statements have been prepared in accordance with the principles of fund accounting. Under the principles of fund accounting, resources are classified for financial reporting purposes into funds established according to their nature and purposes. Separate financial statements are maintained for each fund. However, on the statements of financial position, statements of comprehensive income, and statements of receipts and payments, the respective funds have been combined into two groups, namely, Building Fund and Operating Funds.

Building Fund represents resources restricted for the construction of the Thean Hou Temple and its extensions.

Operating Funds represent the portion of expendable funds that are available to support the activities of the Association.

(b)Property, Plant and Equipment and Depreciation

Property, plant and equipment are stated at cost less accumulated depreciation and impairment loss, if any. The policy for the recognition and measurement of impairment losses is in accordance with Note 2.3(k) to the financial statements.

Cost includes expenditure that is directly attributable to the acquisition of the asset. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

The cost of replacing part of an item of property, plant and equipment is included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when if it is probable that the future economic benefits embodied within the part will flow to the Association and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. All repairs and maintenance are charged to profit or loss as incurred.

14

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.3Summary of Significant Accounting Policies (Continued)

(b)Property, Plant and Equipment and Depreciation (Continued)

Freehold land is not depreciated as it has indefinite useful life. All other property, plant and equipment are depreciated on the straight line basis to write off the cost over the estimated useful lives of the assets concerned. The principal annual rates used for this purpose are as follows:-

Properties

2%

Renovation

20%

Motor vehicle

20%

Furniture, fittings and equipment

10% - 25%

Buddha Statue

10%

Musical, lion dance and other instruments

10%

The residual values and useful lives of assets and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. The effects of any revisions of the residual values, useful lives and depreciation method are included in profit or loss for the financial year in which the changes arise.

Fully depreciated assets are retained in the financial statements until the assets are no longer in use.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is included in the profit or loss in the financial year the asset is derecognised.

(c)Investment properties

Investment properties are freehold land and buildings which are held either to earn rental income or for capital appreciation or for both and are not substantially occupied by the Association. Such properties are measured initially at cost, including transaction costs. Subsequent to the initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The policy for the recognition and measurement of impairment losses is in accordance with Note 2.3(k) to the financial statements.

Depreciation of investment properties are provided on the straight line basis to write off the cost of investment properties to their residual value over their estimated useful lives of the investment properties. The estimated useful lives of the investment properties are as follows:-

Leasehold land and building

Over the remaining lease

 

period of 65 years

Freehold buildings

1.2%

Investment properties are derecognised when either they have been disposed off or when the investment properties are permanently withdrawn from use and no future economic benefit is expected from their disposals. Any gains and losses on the retirement or disposal of investment properties are recognised in the profit or loss in the year in which they arise.

15

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.3Summary of Significant Accounting Policies (Continued)

(d)Revenue recognition

Donations, rental and interest income are recognised on accrual basis.

Dividend income, members’ subscriptions and other income are recognised on receipt basis.

(e)Donated services and other non-monetary donations

No amounts are reflected in the financial statements for donated services and other non- monetary donations for which no objective basis is available to measure their fair values.

(f)Investment

Investment is stated at cost less impairment loss, if any. The policy for the recognition and measurement of impairment losses is in accordance with Note 2.3(k).

On disposal of the investment, the difference between the net disposal proceeds and its carrying amount is charged or credited to the profit or loss.

(g)Development expenditure

Development expenditure is stated at cost less accumulated amortisation and impairment loss.

Development expenditure comprise of all costs that are directly attributable to development activities or that can be allocated on a reasonable basis to such activities.

(h)Inventories

Inventories are stated at cost. Cost is determined on the specific identification basis.

(i)Income Tax

The tax expense in the profit or loss represents the aggregate amount of current and deferred tax. Current tax is the expected amount of income taxes payable in respect of the taxable profit for the year and is measured using the tax rates that have enacted at the reporting date.

Deferred tax is provided for, using the liability method, on temporary differences at the reporting date arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. In principle, deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for all deductible temporary differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised.

16

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.3Summary of Significant Accounting Policies (Continued)

(i)Income Tax (Continued)

Deferred tax is measured at the tax rates that are expected to apply in the period when the assets is realised or the liability is settled, based on the tax rates that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised directly in the profit or loss.

(j)Financial Instruments

Financial instruments are recognised in the statements of financial position when, and only when, the Association becomes a party to the contract provisions of the financial instruments.

A financial instrument is recognised initially, at its fair value, plus, in the case of a financial instrument not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.

The Association categorise the financial instruments as follows:

(i)Financial Assets

Financial assets at fair value through profit or loss

Financial assets are classified as fair value through profit or loss if they are held for trading, including derivatives, or are designated as such upon initial recognition.

A financial asset is classified as held for trading if it is acquired principally for the purpose of selling in the near future or part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short term profit taking.

Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair value with the gain or loss recognised in profit or loss. Exchange differences, interest and dividend income on financial assets at fair value through profit or loss are recognised as other gains or losses in statement of comprehensive income.

Loans and receivables

Financial assets with fixed or determinable payments that are not quoted in an active market, trade and other receivables and cash and cash equivalents are classified as loans and receivables.

Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or impaired, and through the amortisation process.

17

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.3Summary of Significant Accounting Policies (Continued)

(j)Financial Instruments (Continued)

(i)Financial Assets (Continued)

Held-to-maturity investments

Financial assets with fixed or determinable payments and fixed maturity and the Association have the positive intention and ability to hold the investment to maturity is classified as held-to-maturity investments.

Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest method. Gains and losses are recognised in profit or loss when the held-to-maturity investments are derecognised or impaired, and through the amortisation process.

Available-for-sale financial assets

Available-for-sale are financial assets that are designated as available for sale or are not classified in any of the three preceding categories.

After initial recognition, available-for-sale financial assets are measured at fair value with the gain or loss recognised in other comprehensive income, except for impairment losses, foreign exchange gains and losses on monetary instruments and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised.

Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss.

(ii)Financial Liabilities

All financial liabilities are subsequently measured at amortised cost other than those categorised as fair value through profit or loss.

Fair value through profit or loss comprises financial liabilities that are held for trading, derivatives (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument) or financial liabilities that are specifically designated as fair value through profit or loss upon initial recognition.

Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whose fair values cannot be reliably measured are measured at cost.

Other financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values with the gain or loss recognised in profit or loss.

18

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.3Summary of Significant Accounting Policies (Continued)

(j)Financial Instruments (Continued)

(iii)Derecognition

A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired or is transferred to another party without retaining control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is recognised in profit or loss.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying amount and the consideration paid is recognised in profit or loss.

(k)Impairment of Assets

(i)Impairment of Financial Assets

All financial assets (except for financial assets categorised as fair value through profit or loss) is assessed at each reporting date whether there is any objective evidence of impairment as a result of one or more events having an impact on the estimated future cash flows of the asset. Losses expected as a result of future events, no matter how likely, are not recognised. For an equity instrument, a significant or prolonged decline in the fair value below its cost is an objective evidence of impairment.

An impairment loss in respect of loans and receivables and held-to-maturity investments is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account.

An impairment loss in respect of available-for-sale financial assets is recognised in the profit or loss and is measured as the difference between the asset’s acquisition cost (net of any principal repayment and amortisation) and the asset’s current fair value, less any impairment loss previously recognised. Where a decline in the fair value of an available-for-sale financial asset has been recognised in the other comprehensive income, the cumulative loss in other comprehensive income is reclassified from equity and recognised to profit or loss.

An impairment loss in respect of unquoted equity instrument that is carried at cost is recognised in profit or loss and is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset.

19

2. SIGNIFICANT ACCOUNTING POLICIES (Continued)

2.3Summary of Significant Accounting Policies (Continued)

(k)Impairment of Assets(Continued)

(i)Impairment of Financial Assets(Continued)

Impairment losses recognised in profit or loss for an investment in an equity instrument is not reversed through the profit or loss.

If, in a subsequent period, the fair value of a debt instrument increases and the increase can be objectively related to an event occurring after the impairment loss was recognised in profit or loss, the impairment loss is reversed, to the extent that the asset’s carrying amount does not exceed what the carrying amount would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in the profit or loss.

The Association assess at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when an annual impairment assessment for an asset is required, the Association make an estimate of the asset’s recoverable amount.

An impairment loss is recognised in the profit or loss in the period in which it arises.

(l)Employee Benefits

(i)Short term employee benefits

Wages, salaries, social security contribution, bonuses and non-monetary benefits are accrued in the period in which the associated services are rendered by the employees. Short term accumulating compensated absences such as paid annual leave are recognised when services are rendered by employees that increase their entitlement to future compensated absences. Short term non-accumulating compensated absences sick leave, maternity and paternity leave are recognised when absences occur.

(ii)Post-employment benefits

The Association contributes to the Employees’ Provident Fund, the national defined contribution plan. The contributions are charged to the profit or loss in the period to which they are related. Once the contributions have been paid, the Association has no further payment obligations.

(m)Cash and Cash Equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand, demand deposits and balances with banks that are readily convertible to known amounts of cash which are subject to an insignificant risk of changes in value.

20

3.SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated by the directors and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

(a)Critical judgements in applying the Company’s accounting policies

In the process of applying the Association’s accounting policies, which are described in

Note 2.3 to the financial statements, the management has made the following judgement, apart from those involving estimations, which have a significant effect on the amounts recognised in the financial statements:-

(b)Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material judgement to the carrying amounts of assets and liabilities within the next financial year are as stated below:-

(i)Useful lives of property, plant and equipment

The Association estimate the useful lives of property, plant and equipment based on period over which the assets are expected to be available for use. The estimated useful lives of property, plant and equipment are reviewed periodically and are updated if expectation differs from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the relevant assets. In addition, the estimation of useful lives of property, plant and equipment are based on internal technical evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these factors and circumstances. A reduction in estimated useful lives of the property, plant and equipment would increase the recorded expenses and decrease the non-current assets.

(ii)Impairment of property, plant and equipment

The Association reviews the carrying amount of its property, plant and equipment, to determine whether there is an indication that those assets have suffered an impairment loss in accordance with relevant accounting policies. Independent professional valuations to determine the carrying amount of these assets will be procured when the need arise.

As at the end of the financial year under review, the directors are of the view that there is no indication of impairment to these assets and therefore no independent professional valuation was procured by the Association during the financial year to determine the carrying amount of these assets. The carrying amounts of property, plant and equipment are disclosed in Note 4 to the financial statements.

21

3.SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENTS (Continued)

(b)Key sources of estimation uncertainty (Continued)

(iii)Impairment of receivables

The Association assesses at each reporting date whether there is any objective evidence that a financial asset is impaired. To determine whether there is objective evidence of impairment, the Association considers factors such as the probability of insolvency or significant financial difficulties of the debtor and default or significant delay in payments.

Where there is objective evidence of impairment, the amount and timing of future cash flows are estimated based on historical loss experience for assets with similar credit risk characteristics. The carrying amount of the Association’s receivable at the reporting date is disclosed in Note 9 to the financial statements.

(iv)Taxation

Significant judgement is required in determining the capital allowances and deductibility of certain expenses during the estimation of the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the course of business. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred income tax provisions in the period in which such determination is made.

(v)Impairment of Investment Properties

The Association assesses at each reporting date whether there is any objective evidence that the investment properties are impaired to determine whether there is objective of impairment. The Association considers internal and external factors such as market price of properties within the same vicinity and nature.

The Association assessed the market price of the investment properties based on information available through internal research and directors’ best estimates.

Where there is objective evidence, impairment losses are recognised in profit or loss. As at reporting date, the directors of the Association are at of the opinion that there is no impact resulting from the impairment review.

(vi)Net realisable values of inventories

Reviews are made periodically by management on damaged, obsolete and slow moving inventories. These reviews require judgement and estimates. Changes in these estimates may result in revisions to the valuation of inventories.

4.PROPERTY, PLANT AND EQUIPMENT

 

 

 

Building fund

 

 

31.12.2012

31.12.2011

1.1.2011

 

 

Total

Total

Total

 

 

RM

RM

RM

At cost

 

 

 

 

Freehold lands

3,876,019

3,876,019

3,876,019

 

22

 

 

 

 

 

 

 

4.PROPERTY, PLANT AND EQUIPMENT (Continued) Operating Funds

 

 

 

 

Furniture,

 

Musical,

 

 

 

 

 

Fittings

 

Lion Dance

 

 

Properties

 

Motor

and

Buddha

and other

 

 

**

Renovation

Vehicle

Equipment

Statue

Instruments

Total

 

RM

RM

RM

RM

RM

RM

RM

2012

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

At 1st January 2012

8,611,548

516,951

96,034

2,001,570

109,941

541,630

11,877,674

Additions

-

-

-

89,163

-

-

89,163

Disposal

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

At 31st December 2012

8,611,548

516,951

96,034

2,090,733

109,941

541,630

11,966,837

 

 

 

 

 

 

 

 

Accumulated Depreciation

 

 

 

 

 

 

At 1st January 2012

1,137,901

516,929

96,032

1,819,774

63,865

405,408

4,039,909

Depreciation for the

 

 

 

 

 

 

 

financial year

89,181

-

-

71,552

7,330

29,271

197,334

Disposal

-

-

-

-

-

-

-

 

 

 

 

 

 

 

 

At 31st December 2012

1,227,082

516,929

96,032

1,891,326

71,195

434,679

4,237,243

Carrying Amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2012

7,384,466

22

2

199,407

38,746

106,951

7,729,594

 

 

 

 

 

 

 

 

2011

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

At 1st January 2011

8,611,548

516,951

96,034

1,944,862

91,441

541,630

11,802,466

Additions

-

-

-

56,708

33,500

-

90,208

Disposals

-

-

-

-

(15,000)

-

(15,000)

 

 

 

 

 

 

 

 

At 31st December 2011

8,611,548

516,951

96,034

2,001,570

109,941

541,630

11,877,674

 

 

 

 

 

 

 

 

Accumulated Depreciation

 

 

 

 

 

 

At 1st January 2011

1,048,720

516,929

96,032

1,749,175

71,069

372,876

3,854,801

Depreciation for the

 

 

 

 

 

 

 

financial year

89,181

-

-

70,599

7,795

32,532

200,107

Disposals

-

-

-

-

(14,999)

-

(14,999)

 

 

 

 

 

 

 

 

At 31st December 2011

1,137,901

516,929

96,032

1,819,774

63,865

405,408

4,039,909

Carrying Amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 31st December 2011

7,473,647

22

2

181,796

46,076

136,222

7,837,765

Carrying Amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1st January 2011

7,562,828

22

2

195,687

20,372

168,754

7,947,665

 

 

 

 

 

 

 

 

23

4.PROPERTY, PLANT AND EQUIPMENT (Continued)

**Properties consist of:-

 

 

Freehold lands

 

Long

 

 

 

and Buildings

 

Leasehold

 

 

Thean Hou

Condominium

Freehold

Land and

 

 

Temple

Shoplot

Land

Building

Total

 

RM

RM

RM

RM

RM

2012

 

 

 

 

 

Cost

 

 

 

 

 

At 1st January 2012

7,133,796

297,942

1,179,810

-

8,611,548

Additions

-

-

-

-

-

Disposals

-

-

-

-

-

 

 

 

 

 

 

At 31st December 2012

7,133,796

297,942

1,179,810

-

8,611,548

 

 

 

 

 

 

Accumulated Depreciation

 

 

 

 

At 1st January 2012

1,112,876

25,025

-

-

1,137,901

Depreciation for the

 

 

 

 

 

financial year

85,606

3,575

-

-

89,181

Disposals

-

-

-

-

-

 

 

 

 

 

 

At 31st December 2012

1,198,482

28,600

-

-

1,227,082

Carrying Amounts

 

 

 

 

 

 

 

 

 

 

At 31st December 2012

5,935,314

269,342

1,179,810

-

7,384,466

 

 

 

 

 

 

2011

 

 

 

 

 

 

Cost

 

 

 

 

 

At 1st January 2011

7,133,796

297,942

1,179,810

-

8,611,548

Additions

-

-

-

-

-

Disposals

-

-

-

-

-

 

 

 

 

 

 

 

At 31st December 2011

7,133,796

297,942

1,179,810

-

8,611,548

 

 

 

 

 

 

 

Accumulated Depreciation

 

 

 

 

 

At 1st January 2011

1,027,270

21,450

-

-

1,048,720

Depreciation for the

 

 

 

 

 

financial year

85,606

3,575

-

-

89,181

Disposals

-

-

-

-

-

 

 

 

 

 

 

 

At 31st December 2011

1,112,876

25,025

-

-

1,137,901

 

 

 

 

 

 

 

Carrying Amounts

 

 

 

 

 

At 31st December 2011

 

6,020,920

272,917

1,179,810

-

7,473,647

Carrying Amounts

 

 

 

 

 

At 1st January 2011

6,106,526

276,492

1,179,810

-

7,562,828

 

 

 

 

 

 

 

 

 

 

24

 

 

 

5.

INVESTMENT PROPERTIES

 

 

 

 

 

 

 

Freehold lands

Long

 

 

 

 

and Buildings

Leasehold

 

 

 

 

Condominium

Land and

 

 

 

 

Shoplot

Building

Total

 

 

 

RM

RM

RM

 

2012

 

 

 

 

 

Cost

 

 

 

 

 

At 1st January 2012

730,662

487,952

1,218,614

 

Additions

-

-

-

 

Disposals

-

-

-

 

 

 

 

 

 

 

At 31st December 2012

730,662

487,952

1,218,614

 

Accumulated Depreciation

 

 

 

 

 

 

 

 

 

 

At 1st January 2012

113,983

127,281

241,264

 

Depreciation for the financial year

8,768

7,507

16,275

 

Disposals

-

-

-

 

 

 

 

 

 

 

At 31st December 2012

122,751

134,788

257,539

 

Carrying Amounts

 

 

 

 

 

 

 

 

 

 

At 31st December 2012

607,911

353,164

961,075

 

2011

 

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

At 1st January 2011

730,662

487,952

1,218,614

 

Additions

-

-

-

 

Disposals

-

-

-

 

 

 

 

 

 

 

At 31st December 2011

730,662

487,952

1,218,614

 

Accumulated Depreciation

 

 

 

 

 

 

 

 

 

 

At 1st January 2011

105,215

119,774

224,989

 

Depreciation for the financial year

8,768

7,507

16,275

 

Disposals

-

-

-

 

 

 

 

 

 

 

At 31st December 2011

113,983

127,281

241,264

 

Carrying Amounts

 

 

 

 

 

 

 

 

 

 

At 31st December 2011

616,679

360,671

977,350

 

 

 

 

 

 

The fair values of the investment properties were estimated at RM11,186,493/- (2011 : RM11,623,542/-) at directors’ valuation which were made based on current prices in an active market for the said properties.

25

6. INVESTMENT

 

Building

Operating

31.12.2012

31.12.2011

1.1.2011

 

Fund

Funds

Total

Total

Total

 

RM

RM

RM

RM

RM

Unquoted shares at cost

-

6,000

6,000

6,000

6,000

 

 

 

 

 

 

The fair value information has not been disclosed for these financial instruments as their fair value cannot be measured reliably.

7.DEVELOPMENT EXPENDITURE

 

 

Building fund

 

 

31.12.2012

31.12.2011

1.1.2011

 

RM

RM

RM

At cost

 

 

 

Non-current asset

 

 

 

At 1st January/31st December

521,825

521,825

-

Current asset

 

 

 

At 1st January/31st December

-

-

521,825

 

 

 

 

The development expenditures represent the cost incurred in relation to 2nd phase of Thean Hou Temple.

8.INVENTORIES

Inventories represent souvenirs held for resale and consumables.

9.OTHER RECEIVABLES AND DEPOSITS

 

Building

Operating

31.12.2012

31.12.2011

1.1.2011

 

Fund

Funds

Total

Total

Total

 

RM

RM

RM

RM

RM

Study loans receivables

-

1,514,760

1,514,760

1,523,747

1,517,773

Other receivables

-

91,606

91,606

110,428

87,665

Deposits

-

14,770

14,770

14,770

14,890

Rental receivables

-

2,461

2,461

4,223

20,556

Prepayments

-

335,488

335,488

195,300

254,126

 

 

 

 

 

 

 

-

1,959,085

1,959,085

1,848,468

1,895,010

 

 

 

 

 

 

 

26

 

 

 

 

10.DEPOSITS PLACED WITH LICENSED BANKS

 

Building

Operating

31.12.2012

31.12.2011

1.1.2011

 

Fund

Funds

Total

Total

Total

 

RM

RM

RM

RM

RM

Deposit placed with

 

 

 

 

 

licensed banks

5,304,799

35,008,753

40,313,552

34,932,469

31,289,579

 

 

 

 

 

 

Deposits placed with licensed banks of RM 40,000/- (2011 : RM40,000/-) are pledged to the bank as securities for bank guarantee granted to the Association as stated in Note 14 to the financial statements.

11. ACCUMULATED FUNDS

 

 

 

 

 

 

Building

Operating

31.12.2012

31.12.2011

1.1.2011

 

Fund

Funds

Total

Total

Total

 

RM

RM

RM

RM

RM

Accumulated funds brought forward

5,634,450

42,419,110

48,053,560

44,367,559

40,799,122

Surplus for the financial year

163,311

5,060,432

5,223,743

3,686,001

3,568,437

 

 

 

 

 

 

Accumulated funds carried forward

5,797,761

47,479,542

53,277,303

48,053,560

44,367,559

 

 

 

 

 

 

12.OTHER PAYABLES AND ACCRUALS

 

Building

Operating

31.12.2012

31.12.2011

1.1.2011

 

Fund

Funds

Total

Total

Total

 

RM

RM

RM

RM

RM

Other payables

-

1,213,872

1,213,872

1,188,038

1,226,787

Accruals

-

45,240

45,240

64,447

48,174

Advanced received

-

384,553

384,553

398,551

276,530

Rental deposits

-

301,169

301,169

292,487

284,807

 

 

 

 

 

 

 

-

1,944,834

1,944,834

1,943,523

1,836,298

 

 

 

 

 

 

27

13. TAXATION

 

 

 

 

 

Building

Operating

2012

2011

 

Fund

Funds

Total

Total

 

RM

RM

RM

RM

Income Tax

 

 

 

 

- current year

-

(192,797)

(192,797)

(170,225)

- underaccrual in prior year

-

(6,650)

(6,650)

(5,583)

 

 

 

 

 

 

-

(199,447)

(199,447)

(175,808)

 

 

 

 

 

The taxation charge is attributable mainly to rental, interest and dividend income.

A reconciliation of income tax expense applicable to surplus before taxation at the statutory income tax rate to income tax expense at the effective income tax rate of the Association is as follows:-

 

2012

2011

 

RM

RM

Surplus before taxation

5,423,190

3,861,809

 

 

 

Taxation at applicable tax rate of 26% (2011 : 26%)

(1,410,029)

(1,004,070)

Tax effects arising from

 

 

- non-taxable income

2,982,145

2,892,997

- non-deductible expenses

(1,776,588)

(2,070,827)

- tax saving

11,675

11,675

- underaccrual in prior year

(6,650)

(5,583)

 

 

 

 

(199,447)

(175,808)

 

 

 

14. CONTINGENT LIABILITY

 

 

 

2012

2011

 

RM

RM

Secured

 

 

Bank guarantees issued in favour of the following

 

 

party as security deposits:-

 

 

- Tenaga Nasional Bhd.

40,000

40,000

 

 

 

The bank guarantee is secured over deposits placed with licensed bank amounting to RM40,000/- (2011 : RM40,000/-) of the Association as stated in Note 10 to the financial statements.

28

15. CAPITAL COMMITMENT

 

2012

2011

 

RM

RM

Capital expenditure contracted

 

 

but not provided for

213,200

-

 

 

 

The Association has purchased 2 light towers from a Taiwan Buddhist instruments manufacturer with a purchase consideration of RM213,200. A prepayment amounting to RM100, 000/- has been paid and included in other receivables, deposits and prepayment as disclosed in Note 9 to financial statements.

16.FAIR VALUE OF FINANCIAL INSTRUMENTS

(a)The following are classes of financial instruments that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value:-

 

Note

Financial assets

 

Inventories

8

Other receivables, deposits and prepayments

9

Deposits placed with licensed banks

10

Cash and bank balances

 

Financial liabilities

 

Other payables, deposits and accruals

12

The carrying amounts of these financial assets and liabilities are reasonable approximation of fair values, either due to their short term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the reporting date.

(b)Fair Value Hierarchy

(i)Recognised financial instruments

The fair values of the financial assets and liabilities approximate their respective carrying values on the balance sheet of the Company.

(ii)Unrecognised financial instruments

There were no unrecognised financial instruments as at 31st December 2012.

17.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The operations of the Association are subject to a variety of financial risks, including credit risk, liquidity risk and interest rate risk. The Association has formulated a financial risk management framework whose principal objective is to minimise the Association’s exposure to risks and/or costs associated with the financing, investing and operating activities of the Association.

29

17.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

(i)Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on its obligations. The Association’s exposure to credit risk arises primarily from other receivables. For other financial assets (including investment securities, cash and bank balances and derivatives), the Association minimise credit risk by dealing exclusively with high credit rating counterparties.

The Association does not hold any collateral as security and other credit enhancements for the above financial assets.

The management has a credit policy in place to monitor and minimise the exposure of default.

As at reporting date, there were no significant concentrations of credit risk in the Association. The maximum exposure to credit risk for the Association is represented by the carrying amount of each financial instrument.

(ii)Liquidity risk

Liquidity risk is the risk that the Association will not be able to meet its financial obligations as they fall due. The Association’s exposure to liquidity risk arises principally from its various payables.

The Association maintains a level of cash and cash equivalents and bank facilities deemed adequate by the management to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they fall due.

30

17.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Continued)

(ii)Liquidity risk

Maturity analysis

The table below summarises the maturity profile of the Association’s liabilities at the reporting date based on contractual undiscounted repayment obligations.

 

or within

One to

Over five

 

 

one year

five years

years

Total

 

RM

RM

RM

RM

31.12.2012

 

 

 

 

Financial Liability

 

 

 

 

Other payables

1,213,872

-

-

1,213,872

Accruals

45,240

-

-

45,240

Advanced received

384,553

-

-

384,553

Rental deposits

301,169

-

-

301,169

 

 

 

 

 

 

1,944,834

-

-

1,944,834

31.12.2011

 

 

 

 

 

 

 

 

Other payables

1,188,038

-

-

1,188,038

Accruals

64,447

-

-

64,447

Advanced received

398,551

-

-

398,551

Rental deposits

292,487

-

-

292,487

 

 

 

 

 

 

1,943,523

-

-

1,943,523

 

 

 

 

 

1.1.2011

1,836,298

-

-

2,236,010

 

 

 

 

 

(iii) Interest Rate risk

The investments in financial assets are mainly short term in nature and they are not held for speculative purposes but have been mostly placed in deposits with licensed financial institutions.

 

Effective

 

 

 

 

Interest

Within

1 - 5

 

 

rate

1 year

years

Total

 

%

RM

RM

RM

Deposits placed with licensed

 

 

 

 

banks

 

 

 

 

31.12.2012

2.10 - 3.70

40,313,552

-

40,313,552

 

 

 

 

 

31.12.2011

2.10 - 3.70

34,932,469

-

34,932,469

 

 

 

 

 

1.1.2011

2.10 - 3.20

31,289,579

-

31,289,579

 

 

 

 

 

Sensitivity analysis for fixed rate instruments

Sensitivity analysis does not account for any fixed rate financial assets and therefore a change in interest rates at the end of the reporting period would not affect the profit or loss.

31

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

ANALYSIS OF BUILDING FUND

 

 

 

 

 

 

 

STATEMENT OF FINANCIAL POSITION

 

 

 

 

 

 

 

AS AT 31ST DECEMBER 2012

 

 

 

 

 

 

 

 

31.12.2012

31.12.2011

1.1.2011

 

RM

 

 

 

RM

 

RM

ASSETS

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

Property, plant and equipment

3,876,019

3,876,019

3,876,019

Development expenditure

521,825

521,825

-

 

 

 

 

 

 

 

 

 

4,397,844

4,397,844

3,876,019

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development expenditure

-

 

 

-

 

521,825

Inter-fund balances

442,943

 

 

442,943

 

467,359

Deposits placed with licensed banks

5,304,799

 

 

5,141,478

 

4,866,686

Cash and bank balances

2,281

 

 

2,291

 

2,291

 

 

 

 

 

 

 

 

5,750,023

5,586,712

5,858,161

 

 

 

 

 

 

 

TOTAL ASSETS

10,147,867

9,984,556

9,734,180

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to members

 

 

 

 

 

 

 

of the Association

 

 

 

 

 

 

 

Accumulated funds

5,797,761

5,634,450

5,480,535

 

 

 

 

 

 

 

Total equity

5,797,761

5,634,450

5,480,535

Current liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inter-fund balances

4,350,106

4,350,106

4,253,645

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

10,147,867

9,984,556

9,734,180

 

 

 

 

 

 

 

 

32

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

ANALYSIS OF BUILDING FUND

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012

 

31.12.2012

31.12.2011

1.1.2011

 

RM

 

RM

 

RM

INCOME

 

 

 

 

 

Deposit interest

163,321

153,915

118,975

Less:

 

 

 

 

 

EXPENDITURE

10

-

-

 

 

 

 

 

 

SURPLUS BEFORE TAXATION

163,311

153,915

118,975

Taxation

-

-

-

 

 

 

 

 

 

SURPLUS AFTER TAXATION

163,311

153,915

118,975

 

 

 

 

 

 

Fund brought forward

5,634,450

5,480,535

5,361,560

Fund carried forward

5,797,761

5,634,450

5,480,535

 

 

 

 

 

 

33

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

ANALYSIS OF OPERATING FUNDS

STATEMENT OF FINANCIAL POSITION

AS AT 31ST DECEMBER 2012

 

 

 

 

 

 

Elimination

 

 

 

 

 

 

 

 

 

on Inter

 

 

 

 

Persatuan

Thean Hou

Women

Youth

Buddhist

Divisions'

31.12.2012

31.12.2011

1.1.2011

 

Hainan

Temple

Section

Section

Mission

Balances

Total

Total

Total

 

RM

RM

RM

RM

RM

RM

RM

RM

RM

ASSETS

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

Property, plant and equipment

77,105

7,645,777

5

6,707

-

-

7,729,594

7,837,765

7,947,665

Investment properties

961,075

-

-

-

-

-

961,075

977,350

993,625

Investment

6,000

-

-

-

-

-

6,000

6,000

6,000

 

 

 

 

 

 

 

 

 

 

 

1,044,180

7,645,777

5

6,707

-

-

8,696,669

8,821,115

8,947,290

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventories

2,559

54,549

-

-

-

-

57,108

76,821

49,876

Other receivables, deposits and

-

-

-

-

-

-

-

-

-

prepayments

1,587,612

355,473

1,000

-

15,000

-

1,959,085

1,848,468

1,895,010

Inter-fund balances

111,968

7,327,179

123,887

-

7,257,596

(10,470,524)

4,350,106

4,350,106

4,253,645

Deposits planced with

 

 

 

 

 

 

 

 

 

licensed banks

929,989

34,078,764

-

-

-

-

35,008,753

29,790,991

26,422,893

Cash and bank balances

141,682

407,295

60,178

9,662

65,630

-

684,447

789,229

502,344

 

 

 

 

 

 

 

 

 

 

 

2,773,810

42,223,260

185,065

9,662

7,338,226

(10,470,524)

42,059,499

36,855,615

33,123,768

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

3,817,990

49,869,037

185,070

16,369

7,338,226

(10,470,524)

50,756,168

45,676,730

42,071,058

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to members

 

 

 

 

 

 

 

 

 

of the Association

 

 

 

 

 

 

 

 

 

ACCUMULATED FUNDS

691,995

41,182,505

565

(1,384,095)

6,988,572

-

47,479,542

42,419,110

38,887,024

GENERAL RESERVE

 

 

 

 

 

 

 

 

 

FUNDS

685,000

-

-

-

-

-

685,000

685,000

685,000

SCHOLARSHIP

 

 

 

 

 

 

 

 

 

RESERVE FUND

152,197

-

-

-

-

-

152,197

152,197

152,197

 

 

 

 

 

 

 

 

 

 

Total equity

1,529,192

41,182,505

565

(1,384,095)

6,988,572

-

48,316,739

43,256,307

39,724,221

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other payables, deposits and

-

-

-

-

-

-

-

-

-

accruals

179,600

1,757,812

7,422

-

 

-

1,944,834

1,943,523

1,836,298

Inter-fund balances

2,057,546

6,928,720

177,083

1,400,464

349,654

(10,470,524)

442,943

442,943

467,359

Tax payable

51,652

-

-

-

-

-

51,652

33,957

43,180

 

 

 

 

 

 

 

 

 

 

 

2,288,798

8,686,532

184,505

1,400,464

349,654

(10,470,524)

2,439,429

2,420,423

2,346,837

TOTAL EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AND LIABILITIES

3,817,990

49,869,037

185,070

16,369

7,338,226

(10,470,524)

50,756,168

45,676,730

42,071,058

 

 

 

 

 

 

 

 

 

 

34

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

ANALYSIS OF OPERATING FUNDS

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012

 

Persatuan

Thean Hou

Women

Youth

Buddhist

31.12.2012

31.12.2011

 

Hainan

Temple

Section

Section

Mission

Total

Total

 

RM

RM

RM

RM

RM

RM

RM

INCOME

 

 

 

 

 

 

 

Activities income

12,170

2,412,328

84,385

9,900

1,038,135

3,556,918

3,374,241

Dividend income

900

-

-

-

-

900

720

Donations

56,400

6,405,078

-

-

-

6,461,478

6,428,750

Entrance fees and

 

 

 

 

 

 

 

members' subscriptions

12,250

-

-

-

-

12,250

14,745

Deposit interest

27,762

1,031,005

-

-

-

1,058,767

854,149

Rental income

811,800

288,316

-

-

-

1,100,116

1,099,091

 

 

 

 

 

 

 

 

 

921,282

10,136,727

84,385

9,900

1,038,135

12,190,429

11,771,696

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENDITURE

 

 

 

 

 

 

 

Annual General Meeting

 

 

 

 

 

 

 

expenses

92,341

-

-

-

-

92,341

52,219

Activities expenses

77,721

1,406,723

94,270

65,494

298,363

1,942,571

1,862,513

Assessment and quit rent

31,691

15,870

-

-

-

47,561

47,547

Audit fee

 

 

 

 

 

 

 

- current year

30,000

-

-

-

 

30,000

28,000

- prior year

2,000

-

-

-

-

2,000

5,000

Bank charges

212

17,357

54

33

38

17,694

16,500

Condolences and compliments

-

11,569

-

-

-

11,569

9,246

Depreciation

16,275

196,048

-

1,286

-

213,609

216,382

Donations

292,575

162,315

-

-

-

454,890

441,601

Electricity

-

245,618

-

-

-

245,618

254,148

Water

-

51,906

-

-

-

51,906

52,868

Entertainment

-

6,390

-

-

-

6,390

12,540

Insurance

17,165

35,013

-

-

-

52,178

52,054

International Organisation for

 

 

 

 

 

 

 

Standardisation expenses

-

19,598

-

-

-

19,598

38,629

Legal and professional fees

1,350

-

-

-

 

1,350

12,850

Medical expenses

-

8,454

-

-

-

8,454

13,121

Meeting expenses

-

6,295

-

-

-

6,295

4,314

Newspaper and periodicals

-

3,142

-

-

-

3,142

2,398

Office refreshments

-

2,792

-

-

-

2,792

2,397

Postages, printing

 

 

 

 

 

 

 

and stationery

7,327

38,354

-

-

-

45,681

46,003

Praying expenses

-

1,179,607

-

-

-

1,179,607

1,017,684

Printing of magazine

20,928

-

-

-

-

20,928

42,068

Property, plant and equipment

 

 

 

 

 

 

 

written off

-

-

-

-

-

-

1

Sub-total carried forward

 

 

 

 

 

 

 

589,585

3,407,051

94,324

66,813

298,401

4,456,174

4,230,083

35

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

ANALYSIS OF OPERATING FUNDS

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012(continued)

 

Persatuan

Thean Hou

Women

Youth

Buddhist

31.12.2012

31.12.2011

 

Hainan

Temple

Section

Section

Mission

Total

Total

 

RM

RM

RM

RM

RM

RM

RM

Sub-total brought forward

589,585

3,407,051

94,324

66,813

298,401

4,456,174

4,230,083

Rental

11,400

-

-

-

-

11,400

11,400

Repairs and maintenance

5,533

207,220

-

-

-

212,753

199,510

Staff costs

 

 

 

 

 

 

 

- allowances

-

19,070

-

-

-

19,070

13,510

- bonus

-

218,606

-

-

-

218,606

177,848

- Employees' Proident Fund

-

178,887

-

-

-

178,887

165,733

- SOCSO

-

19,407

-

-

-

19,407

19,526

- overtime

-

59,192

-

-

-

59,192

57,909

- salaries

-

1,326,483

-

-

-

1,326,483

1,298,123

Subscription

9,207

-

-

-

-

9,207

18,174

Telephone

-

28,245

-

-

-

28,245

23,801

Upgrading expense

-

373,756

-

-

-

373,756

1,828,765

Web design expenses

-

17,370

-

-

-

17,370

19,420

 

 

 

 

 

 

 

 

 

615,725

5,855,287

94,324

66,813

298,401

6,930,550

8,063,802

SURPLUS/(DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BEFORE TAXATION

305,557

4,281,440

(9,939)

(56,913)

739,734

5,259,879

3,707,894

Taxation

(199,447)

-

-

-

-

(199,447)

(175,808)

SURPLUS/(DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AFTER TAXATION

106,110

4,281,440

(9,939)

(56,913)

739,734

5,060,432

3,532,086

 

 

 

 

 

 

 

 

36

PERSATUAN HAINAN SELANGOR DAN

WILAYAH PERSEKUTUAN

REPORTS AND FINANCIAL STATEMENTS

31ST DECEMBER 2012

PERSATUAN HAINAN SELANGOR DAN WILAYAH PERSEKUTUAN

REPORTS AND FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31ST DECEMBER 2012

CONTENTS

Page

STATEMENT BY THE GENERAL COUNCIL

 

1

INDEPENDENT AUDITORS’ REPORT

2

- 3

FINANCIAL STATEMENTS

 

 

STATEMENTS OF FINANCIAL POSITION

 

4

STATEMENTS OF COMPREHENSIVE INCOME

5

- 6

STATEMENTS OF RECEIPTS AND PAYMENTS

7

- 8

NOTES TO THE FINANCIAL STATEMENTS

9 - 31

ANALYSIS OF BUILDING FUND

 

 

- STATEMENT OF FINANCIAL POSITION

32

- STATEMENT OF COMPREHENSIVE INCOME

33

ANALYSIS OF OPERATING FUNDS

 

 

- STATEMENT OF FINANCIAL POSITION

34

- STATEMENT OF COMPREHENSIVE INCOME

35

- 36