The Executive Committee has pleasure in submitting their report together with the audited financial statements for the year ended 31 March 2012.

Transcription

1 REPORT OF THE EXECUTIVE COMMITTEE The Executive Committee has pleasure in submitting their report together with the audited financial statements for the year ended 31 March PRINCIPAL ACTIVITIES The principal activities of the Association were promoting and developing orienteering activities. RESULTS The results of the Association for the year ended 31 March 2012 and the state of affairs of the Association at that date are set out in the financial statements on pages 5 to 18. EXECUTIVE COMMITTEE The Executive Committee members who held office during the year were: HUI Yau Chiu (Appointed on 1 July 2011) HUNG Fan Tai KWOK Pui Man, Mandy (Appointed on 1 July 2011) LAM Sam Choi (Appointed on 1 July 2011) LEE Chi Kin (Resigned on 1 July 2011) LI Fuk Lung (Appointed on 1 July 2011) NG Kam Fu (Resigned on 1 July 2011) PANG Ka Choi (Appointed on 1 July 2011) POON Ka Hang (Resigned on 1 July 2011) SO Wing Man (Resigned on 1 July 2011) WONG Man Chu, Albert (Resigned on 1 July 2011) YAN Kin Kong YUE Ting Wang MANAGEMENT CONTRACTS No contracts concerning the management and administration of the whole or any substantial part of the business of the Association were entered into or existed during the year. MEMBERS' INTERESTS All Executive Committee members declared to the committee that they have no interest in any material contracts, whether directly or indirectly, entered into by the Association during the year

2 REPORT OF THE EXECUTIVE COMMITTEE (Continued) AUDITORS The financial statements have been audited by Lee Ping Kai Certified Public Accountant who retire and, being eligible, offer himself for re-appointment. On behalf of the Executive Committee (Sd.) Yue Ting Wang YUE Ting Wang, President Hong Kong, 18 June

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4 INDEPENDENT AUDITOR'S REPORT (Continued) TO THE MEMBERS OF ORIENTEERING ASSOCIATION OF HONG KONG LIMITED (incorporated in Hong Kong, limited by guarantee and not having a share capital) OPINION In my opinion, the financial statements give a true and fair view of the state of the Association's affairs as at 31 March 2012 and of its surplus and cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards and have been properly prepared in accordance with the Hong Kong Companies Ordinance. (Sd.) Lee Ping Kai Certified Public Accountant Lee Ping Kai Certified Public Accountant (Practising) Hong Kong, 18 June

5 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2012 Notes NON-CURRENT ASSETS Furniture and fixtures 3(b) DEVELOPMENT FUND ACCOUNT Time deposit 92, , Bank balance 402, , , , CURRENT ASSETS Inventories 7 402, , Accounts receivable 50, , Other receivables 101, , Prepayment 6, , Time deposit 38, , Cash and bank balances 2,501, ,079, ,101, ,487, LESS: CURRENT LIABILITIES Accounts payable and accruals 72, , Other payables 9, , Receipts in advance 8 2,132, ,705, Income tax payable 9 18, ,233, ,835, NET CURRENT ASSETS 868, , NET ASSETS 1,362, ,146,

6 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2012 (Continued) Notes FINANCED BY: Accumulated Fund , , Development Fund , , LCSD Reserve Fund , , ,362, ,146, The annexed notes form an integral part of the financial statements. The financial statements were approved and authorised for issue by the Executive Committee on 18 June (Sd.) Yue Ting Wang. YUE Ting Wang, President (Sd.) Yan Kin Kong. YAN Kin Kong, Honorary Treasurer - 6 -

7 STATEMENT OF COMPREHENSIVE INCOME Notes INCOME Affiliated clubs 9, , Individual membership 26, , Associate membership 1, , Selling of maps, control cards, certificates and souvenirs 313, , Interest received Equipment rental fee 5, , Event registration fee 2, , Coach registration fee , Course income 48, , Course registration fee 6, , Sundry income 22, , , , LESS: EXPENDITURE Office expenses not reimbursed by LCSD 13 32, , Recruitment advertisements not reimbursed by LCSD 1, Deficit on training courses and orienteering competition 21, , AGM expenses 6, , Coach allowances 48, , Insurance 6, , Spring dinner 4, , Equipment and maintenance 7, , Incentive award 76, , Athlete's incentive award 10, , Other expenses 29, , , , SURPLUS/(DEFICIT) BEFORE TAX 5 192, (71,960.74) OTHER COMPREHENSIVE INCOME - - TOTAL COMPREHENSIVE INCOME FOR THE YEAR 192, (71,960.74) INCOME TAX EXPENSE 9 (18,446.00) - NET SURPLUS/(DEFICIT) FOR THE YEAR 173, (71,960.74) LESS: TRANSFER TO DEVELOPMENT FUND 11 (86,893.00) - NET SURPLUS/(DEFICIT) TRANSFERRED TO ACCUMULATED FUND 10 86, (71,960.74) The annexed notes form an integral part of the financial statements

8 STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES Surplus/(Deficit) before tax 192, (71,960.74) Interest income (4.00) (3.98) Net utilisation of development fund and reserves 41, , OPERATING SURPLUS/(DEFICIT) BEFORE CHANGES IN WORKING CAPITAL 233, , (Increase)/Decrease in inventories (70,397.90) 47, (Increase) in accounts receivable (30,652.88) (5,905.76) (Increase)/Decrease in other receivables (92,400.10) 95, Decrease/(Increase) in prepayment 2, (6,925.30) (Decrease) in accounts payable and accruals (52,341.62) (44,518.41) Increase/(Decrease) in other payables 4, (3,588.32) Increase in receipts in advance 427, , , , Hong Kong profits tax refunded - 18, NET CASH FROM OPERATING ACTIVITIES 422, , CASH FLOWS FROM INVESTING ACTIVITIES Interest income NET CASH FROM INVESTING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS 422, , CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 2,118, ,737, CASH AND CASH EQUIVALENTS AT END OF YEAR 2,540, ,118, ANALYSIS OF BALANCE OF CASH AND CASH EQUIVALENTS Time deposit 38, , Cash and bank balances 2,501, ,079, The annexed notes form an integral part of the financial statements. 2,540, ,118,

9 1 GENERAL INFORMATION Orienteering Association of Hong Kong Limited is a limited liability company domiciled and incorporated in Hong Kong. The address of its registered office and principal place of business is Room 1014, Olympic House, No. 1 Stadium Path, So Kon Po, Causeway Bay, Hong Kong. The principal activities of the Association were promoting and developing orienteering activities. 2 STATEMENT OF COMPLIANCE WITH HONG KONG FINANCIAL REPORTING STANDARDS The Association's financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (HKFRSs), which includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (HKASs) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (HKICPA), accounting principles generally accepted in Hong Kong, and the requirements of the Hong Kong Companies Ordinance. A summary of significant accounting policies is set out in note 3. In the current year, the Association has applied the following new and revised HKFRSs issued by the HKICPA that are relevant to its operations and effective for annual periods beginning on or after 1 January New and revised HKFRSs affecting presentation and disclosure only HKAS 1 (revised) Presentation of Financial Statements HKAS 1 (revised) has introduced terminology changes (including revised titles for the financial statements) and changes in the format and content of the financial statements. 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation of the financial statements The measurement basis used in preparing the financial statements is historical cost. (b) Property, plant and equipment Property, plant and equipment are stated in the statement of financial position at cost less accumulated depreciation and impairment losses, if any. It is the policy of the Association to maintain its assets at a nominal value of $1. All additions during the year are written off directly to the statement of comprehensive income

10 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (c) Inventories Inventories, which represent merchandises held for resale, are stated at the lower of cost and net realisable value. Cost, which comprises all costs of purchase and other costs that have been incurred in bringing the inventories to their present location and condition, is calculated using the first-in, first-out method. Net realisable value represents the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. (d) Taxation Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognised on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arise from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each end of the reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity

11 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (e) Revenue recognition Revenue is recognised when it is probable that the economic benefits will flow to the Association and when the revenue can be measured reliably, on the following bases: (i) revenue arising from membership fee is recognised when the cash is received; and (ii) revenue arising from subvention and other income is recognised on an accrual basis according to the timing of the event to which it relates. (f) Financial instruments Financial assets and financial liabilities are recognised in the statement of financial position when the company becomes a party to the contractual provisions of the instrument. Trade and other receivables Trade and other receivables are initially measured at fair value and, after initial recognition, at amortised cost less impairment losses for bad and doubtful debts, if any, except for short-term receivables with no stated interest rate and the effect of discounting being immaterial, that are measured at their original invoice amount less impairment losses for bad and doubtful debt, if any. At each end of the reporting period, the company assesses whether there is any objective evidence that a receivable or group of receivables is impaired. Impairment losses on trade and other receivables are recognised in profit or loss when there is objective evidence that an impairment loss has been incurred and are measured as the difference between the receivable's carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at its original effective interest rate, i.e the effective interest rate computed at initial recognition. Cash and cash equivalents Cash comprises cash on hand and at bank and demand deposits with bank. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the purpose of statement of cash flows, bank overdrafts which are repayable on demand form an integral part of the company's cash management are included as a component of cash and cash equivalents. Trade and other payables Trade and other payables are initially measured at fair value and, after initial recognition, at amortised cost, except for short-term payables with no stated interest rate and the effect of discounting being immaterial, that are measured at their original invoice amount

12 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (g) Employee benefits Obligations for contributions to defined contribution retirement plans, including contributions payable under the Hong Kong Mandatory Provident Fund Schemes Ordinance, are recognised as an expense in the statement of comprehensive income as incurred. 4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENT Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Association makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. However, there are no estimates or assumptions used on these financial statements that the executive committee members expect will have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 5 SURPLUS/(DEFICIT) BEFORE TAX Surplus/(Deficit) before tax is arrived at after charging/(crediting): Auditor's remuneration 24, , Staff costs - salaries (including an one-off subvention from LCSD 692, , for performance incentive pay) - contribution to mandatory provident fund 31, , Bank interest income (4.00) (3.98) 6 EMOLUMENTS OF EXECUTIVE COMMITTEE MEMBERS No emoluments was paid to the Executive Committee members during the year (2011: Nil)

13 7 INVENTORIES Cake coupon , Compass 8, , Control cards 5, , E-cards 234, , OAHK badges and certificates 16, , Orienteering books 2, , Orienteering maps 77, , Orienteering uniform 44, , Souvenir 12, , , , RECEIPTS IN ADVANCE Entry fee and mapping charges 6, , E-card deposits 44, , Subvention for programmes 1,999, ,604, Subvention for salaries and office expenses 83, , ,132, ,705, The amounts for subvention are held in the bank accounts of the Association. Any unused amounts are subject to refund to LCSD

14 9 INCOME TAX EXPENSE Hong Kong profits tax has been provided at 16.5% on estimated assessable profit generated for the year (2011: Nil). Reconciliation between tax expense and accounting surplus/(deficit) at applicable tax rates: Surplus/(Deficit) before tax 192, (71,960.74) Tax expense at the statutory tax rate of 16.5% (2011: 16.5%) 31, (13,270.00) Tax effect arising from income that is not taxable in determining taxable profits (1.00) (1.00) Tax effect of unused tax losses not recognised in the current year (13,271.00) 13, Tax expense 18, At 31 March 2012, the Association has estimated surplus of 192,032 (2011: unused tax losses 80,430) available for set off against future profits. Net deductible temporary differences have not been recognised owing to the absence of objective evidence in respect of the availability of sufficient taxable profits that are expected to arise to offset against the deductible temporary differences. All unutilised tax losses can be carried forward indefinitely. 10 ACCUMULATED FUND Balance as at beginning of year 293, , Transfer to statement of comprehensive income 86, (71,960.74) Balance as at end of year 380, ,

15 11 DEVELOPMENT FUND Balance as at beginning of year 514, , Interest on time deposit Interest on savings account Transfer from accumulated fund 86, Balance as at end of year 601, , LCSD RESERVE FUND Balance as at beginning of year 338, , Application during the year (137,642.20) (44,774.00) Netoff from subvention - (137,707.00) Transfer from LCSD subvention 179, , Balance as at end of year 380, , According to the subvention agreement with LCSD, this reserve will be subject to refund and any application on the fund have to obtain prior approval from LCSD

16 13 OFFICE EXPENSES NOT REIMBURSED BY LCSD The Leisure & Cultural Services Department ("LCSD") subsidises the Association during the year for office expenses and staff salaries incurred at 119,325 (2011: 113,325) per annum and 781,510 (2011: 619,937) per annum respectively. Any excess expenses or items not allowed by LCSD were absorbed by the Association itself. Staff Office Staff Office salaries expenses salaries expenses Payment during the year 724, , , , Less: Reimbursement from (781,510.00) (119,325.00) (619,937.00) (113,325.00) LCSD Absorbed by Association - (32,568.79) - (8,340.50) To be refunded to LCSD 57, , , , Balance as at end of year COACH REGISTRATION FEE The coach registration fee is made every 2 years. This amount represents the fee for some new coach registration during the year. 15 FINANCIAL RISK MANAGEMENT The Association has classified its financial assets in the following categories: Loans and receivables Accounts receivable and other receivables 151, , Prepayment 6, , Time deposit 38, , Cash and bank balances 2,501, ,079, ,699, ,155,

17 15 FINANCIAL RISK MANAGEMENT (Continued) The Association has classified its financial liabilities in the following categories: Financial liabilities at amortised cost Accounts payable, accruals and other payables 82, , Receipts in advance 2,132, ,705, ,214, ,835, As at the end of the reporting period, all financial instruments are stated at their fair value. The Association is exposed to various kinds of risks in its operation and financial instruments. The Association's risk management objectives and policies mainly focus on minimizing the potential adverse effects of these risks on the Association by closely monitoring the individual exposure as follows: (a) Market risk - Fair value interest rate risk The Association's exposure on fair value interest rate risk mainly arises from its fixed deposits with a bank, which is classified as cash and cash equivalents. Since the fixed deposits with a bank usually mature within 1 month, the exposure is considered not significant. (b) Credit risk The Association has no concentrations of credit risk. It has different kind of income source and most of the outstanding amounts are settled within 30 days. There is an exception that some subvention on individual programme will only be made after the close of the event. (c) Liquidity risk The Association manages its funds conservatively by maintaining a comfortable level of cash and cash equivalents in order to meet continuous operation need. The largest payable is a refund of subvention received. No sensitivity analysis for the Association's exposure to various risks arising from financial instruments is prepared since the management's assessment of these risks are immaterial

18 16 HONG KONG FINANCIAL REPORTING STANDARDS ISSUED BUT NOT YET EFFECTIVE FOR THE YEAR HKFRSs that have been issued but are not yet effective for the year include the following HKFRSs which may be relevant to the Association's operations and financial statements: Effective for annual periods beginning on or after HKFRS 9 "Financial Instruments (relating to the 1 January 2015 classification and measurement of financial assets)" HKFRS 9 "Financial Instruments" introduces new requirements for the classification and measurement of financial assets and will be effective from 1 January 2015, with earlier application permitted. The Standard requires all recognised financial assets that are within the scope of HKAS 39 "Financial Instruments: Recognition and Measurement" to be measured at either amortised cost or fair value. Specifically, debt investments that (i) are held within a business model whose objective is to collect the contractual cash flows and (ii) have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortised cost. All other debt investments and equity investments are measured at fair value. The application of HKFRS 9 might affect the classification and measurement of the Association's financial assets. The Association has not early adopted these HKFRSs. The directors of the Association anticipate that the application of the other new and revised Standards, Amendments and Interpretations will have no material impact on the financial performance and financial position of the Association