The principal activity of the company is to promote, support and encourage education in recreation management.

Transcription

1 REPORT OF THE EXECUTIVE COMMITTEE The members of the executive committee have pleasure in submitting their report together with the audited financial statements for the year ended 31st December, PRINCIPAL ACTIVITY The principal activity of the company is to promote, support and encourage education in recreation management. FINANCIAL STATEMENTS The results of the company for the year are set out in the income statement on page 5. The members of the executive committee do not recommend the payment of a dividend. EXECUTIVE COMMITTEE The members of the executive committee of the company during the year were : CHAN Joyce CHEUNG Kwok Kee, Paul HUANG Ling To, Lester KWONG Man Lung, Arthur LAI Yu Ming LAM Huen Sum, Michael LAU Wing Chung, Patrick LEUNG King Fat, Kelvin LI Sai Sum, Sam WONG Tat Ming, Richard WOO Wai Man, Johnny YEUNG Sheh Kwong, Donny In accordance with Article 38 of the company's Articles of Association, all retiring members of the executive committee shall be eligible for re-election. INTEREST IN CONTRACTS No contracts of significance to which the company was a party and in which a member of the executive committee had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year. 1

2 REPORT OF THE EXECUTIVE COMMITTEE MANAGEMENT CONTRACTS No contracts concerning the management and administration of the whole or any substantial part of the activities of the company were entered into or existed during the year. ARRANGEMENTS TO PURCHASE SHARES OR DEBENTURES At no time during the year was the company a party to any arrangements to enable the members of the executive committee to acquire benefits by means of the acquisition of shares in, or debentures of, the company or any other body corporate. AUDITOR The financial statements have been audited by Lau & Au Yeung C.P.A. Limited who retire and, being eligible, offer themselves for reappointment. On behalf of the Board Chairman HONG KONG, 2

3 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HONG KONG RECREATION MANAGEMENT ASSOCIATION LIMITED (incorporated in Hong Kong and limited by guarantee) We have audited the financial statements of Hong Kong Recreation Management Association Limited set out on pages 5 to 14, which comprise the balance sheet as at 31st December, 2012, and the income statement, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Executive committee's responsibility for the financial statements The members of the executive committee are directors of the company and are responsible for the preparation of financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standard ("HKFRS") for Private Entities issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and the Hong Kong Companies Ordinance, and for such internal control as the members of the executive committee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility Our responsibility is to express an opinion on these financial statements based on our audit. This report is made solely to you, as a body, in accordance with section 141 of the Hong Kong Companies Ordinance, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the HKICPA. 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 the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the members of the executive committee, as well as evaluating the overall presentation of the financial statements. 3

4 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HONG KONG RECREATION MANAGEMENT ASSOCIATION LIMITED (incorporated in Hong Kong and limited by guarantee) Auditor's responsibility (cont'd) We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the state of of the company's affairs as at 31st December, 2012 and of its deficit and cash flows for the year then ended in accordance with HKFRS for Private Entities and have been properly prepared in accordance with the Hong Kong Companies Ordinance. LAU & AU YEUNG C.P.A. LIMITED Certified Public Accountants HONG KONG, Chan Lok Sang, Director Practising Certificate Number : P

5 INCOME STATEMENT Note RECEIPTS 3 348, ,875 ADMINISTRATIVE EXPENSES (GENERAL FUND) 4 (207,485) (188,322) EVENTS' EXPENDITURE 6 (177,851) (98,039) (DEFICIT)/SURPLUS FOR THE YEAR (36,860) 96,514 ===== ===== The notes on pages 9 to 14 are an integral part of these financial statements. 5

6 BALANCE SHEET AS AT 31ST DECEMBER, 2012 Note CURRENT ASSETS Accounts and other receivables 5,000 7,500 Deposit and prepayment 25,018 4,802 Cash and bank balances 8 501, , , , LESS : CURRENT LIABILITIES Accounts payable 11,715 10,075 Receipts in advance 36,150 8,550 47,865 18, NET CURRENT ASSETS 484, ,003 EQUITY General fund 5 484, ,003 Chairman Treasurer The notes on pages 9 to 14 are an integral part of these financial statements. 6

7 STATEMENT OF CHANGES IN EQUITY Balance as at 1st January 521, ,489 (Deficit)/Surplus for the year (36,860) 96,514 Balance as at 31st December 484, ,003 The notes on pages 9 to 14 are an integral part of these financial statements. 7

8 STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES (Deficit)/Surplus for the year (36,860) 96,514 Interest received (26) (25) (Deficit)/Surplus before working capital changes (36,886) 96,489 Decrease in accounts and other receivables 2,500 28,972 Increase in deposit and prepayment (20,216) (3,812) Increase/(Decrease) in accounts payable 1,640 (2,326) Increase in receipt in advance 27,600 8,150 Net cash (used in)/generated from operating activities (25,362) 127,473 CASH FLOWS FROM INVESTING ACTIVITIES Interest received (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (25,336) 127,498 CASH AND CASH EQUIVALENTS AT 1ST JANUARY 527, ,828 CASH AND CASH EQUIVALENTS AT 31ST DECEMBER 501, ,326 ANALYSIS OF CASH AND CASH EQUIVALENTS Cash and bank balances 501, ,326 The notes on pages 9 to 14 are an integral part of these financial statements. 8

9 ACCOUNTING POLICIES AND EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 1. GENERAL INFORMATION The company was incorporated in Hong Kong on 10th January, 1991 under the Hong Kong Companies Ordinance as a company limited by guarantee and not having a share capital. The address of its registered office is 21st Floor, Tai Yau Building, 181 Johnston Road, Wanchai, Hong Kong. The principal activity of the company is to promote, support and encourage education in recreation management. Under the provisions of the company's Memorandum and Articles of Association, every member shall, in the event of the company being wound up, contribute to the assets of the company to the extent of HK$10. At 31st December, 2012, the company had 528 members. These financial statements are presented in Hong Kong dollars. 2. PRINCIPAL ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. (a) Basis of preparation The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standard for Private Entities ("HKFRS for Private Entities") issued by the Hong Kong Institute of Certified Public Accountants and the requirement of Hong Kong Companies Ordinance. The financial statements have been prepared under the historical cost convention (b) Revenue recognition Provided that it is probable that the economic benefits associated with the revenue transaction will flow to the company and the revenue and costs, if applicable, can be measured reliably, as follows: (i) Entrance and subscription fees Entrance and subscription income is recognised when the right to receive payment is established. (ii) Advertising income Advertisement income is recognised when the relevant services are provided. 9

10 ACCOUNTING POLICIES AND EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT'D) (b) Revenue recognition (cont'd) (iii) Receipt from events and sponsorships Receipt from events and sponsorships is recognised when the right to receive such revenue has been established. (iv) Interest income Interest income is recognized on a time-proportion basis using the effective interest method. (c) Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts, if any. (d) Employee benefits obligatiolns Salaries, annual bonuses, paid annual leave, contributions to defined contribution retirement plans and the cost of non-monetary benefits are accrued in the year in which the associated services are rendered by employees. Where payment or settlement is deferred and the effect would be material, these amounts are stated at their present values. (e) Trade and other receivables Trade and other receivables are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade and other receivables is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. (f) Trade and other payables Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. 10

11 ACCOUNTING POLICIES AND EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT'D) (g) 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 income statement because of items of income or expense that are taxable or deductible in other years and 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 temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases using in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that is probable that taxable profit will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. 3. REVENUE An analysis of the company's revenue is as follows: RECEIPTS - GENERAL FUND Advertisements 94,000 86,500 Entrance fees 3,300 5,950 Interest Subscriptions 12,350 6,900 Sponsorships 110, ,000 Sundries 3,750 5, , , EVENTS' RECEIPTS Seminar fees 39,000 48,250 Annual general meeting dinner 69,050 50,250 Residential Clubhouse Management Award receipts 17, ,050 98, Total revenue 348, ,875 11

12 ACCOUNTING POLICIES AND EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 4. ADMINISTRATIVE EXPENSES - GENERAL FUND Awards 10,000 15,000 Bank charges Business registration fee 2, Conference expenses 33,656 - MPF contributions Printing, stationery and postage 114, ,651 Secretarial fee 12,105 12,105 Salary 18,000 18,000 Storages 11,092 8,884 Subscriptions 2,277 2,782 Sundry expenses 32 1,623 Telephone 1,188 1,207 Webpage expenses 800 3, , , GENERAL FUND Balance brought forward 521, , Advertisements 94,000 86,500 Entrance fees 3,300 5,950 Interest Subscriptions 12,350 6,900 Sponsorships 110, ,000 Sundries 3,750 5,000 General receipts 223, ,375 Events receipts (Note 6) 125,050 98,500 Total receipts for the year 348, ,875 Less : Administrative expenditure (Note 4) 207, ,322 Events expenditure (Note 6) 177,851 98,039 (Deficit)/Surplus for the year (36,860) 96, Balance carried forward 484, ,003 12

13 ACCOUNTING POLICIES AND EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 6. (DEFICIT)/SURPLUS FROM EVENTS RECEIPTS Seminar fees 39,000 48,250 Annual general meeting dinner 69,050 50,250 Residential Clubhouse Management Award receipts 17, ,050 98, EXPENDITURE Seminar expenses 33,854 25,481 Annual general meeting dinner 125,199 72,558 Residential Clubhouse Management Award expenses 18, ,851 98, (DEFICIT)/SURPLUS FROM EVENTS (52,801) 461 ====== === 7. INCOME TAX EXPENSE No Hong Kong profits tax has been provided as, in the opinion of the committee members, there is no estimated assessable profit arising in Hong Kong during the year (2011: Nil). The tax on the company's surplus before income tax differs from the theoretical amount that would arise using the Hong Kong profits tax rate as follows :- (Deficit)/Surplus before income tax (36,860) 96,514 ===== ===== Calculated at a taxation rate of 16.5% (2011: 16.5%) (6,081) 15,924 Income not subject to taxation (57,499) (63,174) Expenses not deductible for taxation purpose 63,580 47,250 Income tax - - ===== ===== 13

14 ACCOUNTING POLICIES AND EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 8. CASH AND BANK BALANCES Cash at bank earns interest at floating rates based on daily bank deposit rates. The carrying amount of the cash at bank approximates to its fair value. 9. EMPLOYEE BENEFIT EXPENSES Salaries and bonus 18,000 18,000 Pension costs - defined contribution plans ,900 18,900 ===== ===== 10. EXECUTIVE COMMITTEE'S REMUNERATION None of the members of the executive committee received or will receive any fees or emoluments in respect of their services to the company during the year (2011: Nil). 11. DEFERRED INCOME TAX No deferred tax assets or liabilities have been recognised as the company has neither unused tax losses available to offset against future profit nor deductible temporary difference (2011: Nil). 12. APPROVAL OF FINANCIAL STATEMENTS The financial statements set out on pages 5 to 14 were approved by the members of the executive committee on. 14