REPORTS AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 ST DECEMBER, 2014 CONTENTS PAGES REPORT OF THE BOARD OF GOVERNORS 1 3 INDEPENDENT AUDITOR S REPORT 4 6 STATEMENT OF FINANCIAL POSITION 7 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 8 STATEMENT OF CHANGES IN FUND 9 STATEMENT OF CASH FLOWS 10 NOTES TO THE FINANCIAL STATEMENTS 11 24 DETAILED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 25 (For management information purpose only) SCHEDULES TO DETAILED STATEMENT OF PROFIT OR LOSS 26 27 AND OTHER COMPREHENSIVE INCOME (For management information purpose only)
REPORT OF THE BOARD OF GOVERNORS The Board of Governors present herewith their annual report together with the audited financial statements for the year ended 31 st December, 2014. PRINCIPAL ACTIVITIES The principal activities of the College during the year are dedicated to promote excellence in paediatric nursing in Hong Kong through regulating the professional standards of paediatric nursing practice, conducting nursing education and promulgating nursing research. These aim at protecting the well being of the children and adolescents as well as their families in the hospital and community. AFFAIRS The College s results for the year and the state of the College s affairs at 31 st December, 2014 are stated in the attached financial statements on pages 7 to 24. BOARD OF GOVERNORS The Board of Governors who held office during the year and up to the date of this report were:- Ms. Tien Luk Sau Kuen, Gloria Ms. Chan Kwai Fong, Pamela Ms. Lee Wai Yee, Susanna Ms. Lee Gun Ping, Winnie Ms. Lee Regina Lai Tong Ms. Wan Yuet Mei Ms. Lee Wai Yee, Wendy Ms. Ma Tsui Mai, Ella Ms. Chan Yim Fan Ms. Yu Wan Lan Ms. Chan Kam Ming Ms. Cheung Sui Sum, Jeanny 1
REPORT OF THE BOARD OF GOVERNORS BOARD OF GOVERNORS (CONT D) Ms. Lee Kit Ling Ms. Lee Suk Yin Ms. Chan Wing Seung, Audrey In accordance with Clauses 41 to 43 of the College s Articles of Association, all current members of the Board of Governors shall retire and, being eligible, offer themselves for re-election at the Annual General Meeting for every three years. MANAGEMENT CONTRACTS No contracts were entered into by the College for the management and administration of the whole or any substantial part of the business of the College. GOVERNORS INTEREST IN CONTRACTS No contracts of significance in relation to the College to which the College was a party and in which any governor has a material interest subsisted at the end of the year or at any time during the year. GOVERNORS BENEFITS FROM RIGHTS TO ACQUIRE DEBENTURES At no time during the year was the College a party to any arrangement to enable the Board of Governors of the College to acquire benefits by means of acquisition of debentures of the College or any other body corporate. 2
REPORT OF THE BOARD OF GOVERNORS AUDITORS The financial statements for the year have been audited by Messrs. Paul W.C. Ho & Company, Certified Public Accountants (Practising), who retire and, being eligible, offer themselves for re-appointment. On behalf of the Board HONG KONG DATED: Tien Luk Sau Kuen, Gloria President 3
INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF HONG KONG COLLEGE OF PAEDIATRIC NURSING LIMITED (Limited by guarantee) (Incorporated in Hong Kong with limited liability) We have audited the financial statements of Hong Kong College Of Paediatric Nursing Limited set out on pages 7 to 24, which comprise the statement of financial position as at 31 st December, 2014, and the statement of profit or loss and other comprehensive income, statement of changes in fund and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. GOVERNORS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The governors are responsible for the preparation of financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the Hong Kong Companies Ordinance, and for such internal control as the governors 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 and to report our opinion solely to you, as a body, in accordance with section 80 of Schedule 11 to the Hong Kong Companies Ordinance (Cap.622) 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 Hong Kong Institute of Certified Public Accountants. 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. 4
INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF HONG KONG COLLEGE OF PAEDIATRIC NURSING LIMITED (Limited by guarantee) (Incorporated in Hong Kong with limited liability) AUDITOR S RESPONSIBILITY (CONT D) 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 governors, 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. 5
INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF HONG KONG COLLEGE OF PAEDIATRIC NURSING LIMITED (Limited by guarantee) (Incorporated in Hong Kong with limited liability) OPINION In our opinion, the financial statements give a true and fair view of the state of the College s affairs as at 31 st December, 2014 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. HONG KONG PAUL W.C. HO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS (PRACTISING) DATED: 6
STATEMENT OF FINANCIAL POSITION AT 31 ST DECEMBER, 2014 NOTE 2014 2013 HK$ HK$ CURRENT ASSETS Cash at bank 9 917,821 546,621 Prepayments 52,233 43,000 Inventories 2(g) 8,079 -- 978,133 589,621 CURRENT LIABILITIES Accrued charges (13,500) (18,900) Members subscription fee receipt-in-advance (165,000) (135,000) (178,500) (153,900) NET CURRENT ASSETS 799,633 435,721 Financed by: ACCUMULATED FUND Accumulated surplus brought forward 435,721 323,017 Surplus for the year 363,912 112,704 Accumulated surplus carried forward 799,633 435,721 The notes on pages 11 to 24 form an integral part of these financial statements. The financial statements were approved and authorised for issue by the Board of Governors on Tien Luk Sau Kuen, Gloria President Yu Wan Lan Treasurer 7
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 ST DECEMBER, 2014 NOTE 2014 2013 HK$ HK$ Revenue 6 633,707 406,280 Cost of sales (3,703) (1,280) Gross profit 630,004 405,000 Other income 6 94 36 Expenditure (266,186) (292,332) Surplus before tax 7 363,912 112,704 Income tax expense 8 -- -- Surplus for the year 363,912 112,704 Other comprehensive income -- -- Total comprehensive income in the year 363,912 112,704 The notes on pages 11 to 24 form an integral part of these financial statements. 8
STATEMENT OF CHANGES IN FUND FOR THE YEAR ENDED 31 ST DECEMBER, 2014 Accumulated surplus HK$ At 1.1.2013 323,017 Surplus for the year 112,704 At 1.1.2014 435,721 Surplus for the year 363,912 At 31.12.2014 799,633 The notes on pages 11 to 24 form an integral part of these financial statements. 9
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 ST DECEMBER, 2014 2014 2013 HK$ HK$ OPERATING ACTIVITIES Surplus for the year 363,912 112,704 Bank interest income (94) (36) Surplus before working capital changes 363,818 112,668 Increase in prepayments (9,233) (2,550) Decrease in other receivable -- 2,450 (Increase)/decrease in inventories (8,079) 1,280 (Decrease)/increase in accrued charges (5,400) 6,900 Increase in members subscription fee receipt-in-advance 30,000 135,000 Cash generated from operations 371,106 255,748 Hong Kong profits tax paid -- -- Net cash generated from operating activities 371,106 255,748 INVESTING ACTIVITY Bank interest income 94 36 Net cash generated from investing activity 94 36 Increase in cash and cash equivalents 371,200 255,784 Cash and cash equivalents at the beginning of year 546,621 290,837 Cash and cash equivalents at the end of year (Note 9) 917,821 546,621 The notes on pages 11 to 24 form an integral part of these financial statements. 10
NOTES TO THE FINANCIAL STATEMENTS 1. GENERAL The College is a private company limited by guarantee not having a share capital incorporated in Hong Kong and the College s registered office is located at Flat A, 12/F., Tower 2, Regency Park, Wan King Hill Road, Kwai Chung, New Territories, Hong Kong. The principal activities of the College during the year were dedicated to promote excellence in paediatric nursing in Hong Kong through regulating the professional standards of paediatric nursing practice, conducting nursing education and promulgating nursing research. These aim at protecting the well being of the children and adolescents as well as their families in the hospital and community. 2. PRINCIPAL ACCOUNTING POLICIES These financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards ( HKFRSs ), which also include all Hong Kong Accounting Standards ( HKASs ) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants ( HKICPA ) and accounting principles generally accepted in Hong Kong. These financial statements also comply with the applicable requirements of the Hong Kong Companies Ordinance which concern the preparation of financial statements, which for this financial year and the comparative period continue to be those of the predecessor Hong Kong Companies Ordinance (Cap.32), in accordance with transitional and saving arrangements for Part 9 of the new Hong Kong Companies Ordinance (Cap.622), Accounts and Audit, which are set out in sections 76 to 87 of Schedule 11 to that Ordinance. The financial statements are prepared under the historical cost convention. In 2014, the College has initially applied the new and revised HKFRSs issued by the HKICPA that are first effective for accounting periods beginning on or after 1 st January, 2014. A summary of the changes in accounting policies resulting from the College s application of these HKFRSs is set out in note 3. The preparation of financial statements in conformity with HKFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the College s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are especially significant to the financial statements are disclosed in note 4. The College has not applied new standards or interpretations that are not yet effective for the current accounting period. 11
NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT D) A summary of the principal accounting policies adopted by the College is set out below:- (a) Recognition of income Revenue is recognised when it is probable that the economic benefits will flow to the College and when the revenue can be measured reliably on the following bases: - Interest income is recognised on a time proportion basis, taking into account the principal amounts outstanding and the interest rates applicable. - Revenue from sale of goods is recognised at the date of delivery to members. - Members subscription fee income is recognised when cash is received and includes all sum received up to the end of the reporting period. (b) Provisions and contingent liabilities Provisions are recognised for liabilities of uncertain timing or amount when the College has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote. (c) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and on hand and short-term highly liquid investments which are readily convertible into known amounts of cash and subject to an insignificant risk of change in value. For the purpose of statement of cash flows, bank overdraft which is repayable on demand form an integral part of the College s cash management and are included as a component of cash and cash equivalents. 12
NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT D) (d) Taxation The tax currently payable is based on taxable profit for the year/period. Taxable profit differs from net profit as reported in the statement of profit or loss and other comprehensive income because it excludes items of income or expense that are taxable or deductible in other periods, and it further excludes items that are never taxable or deductible. Deferred tax is the tax expected to be payable or recoverable 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 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. The carrying amount of deferred tax assets is reviewed at the end of each 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 year when the liability is settled or the asset is realized, based on tax rate that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the College expects at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities. For the purposes of measuring deferred tax liabilities or assets for investment properties that are measured using the fair value model, the carrying amounts of such properties are presumed to be recovered entirely through sale, unless the presumption is rebutted. The presumption is rebutted when the investment property is depreciable and is held within a business model whose objective is to consume substantially all of the economic benefits embodied in the investment property over time, rather than through sales. Deferred tax is charged or credited in the statement of profit or loss and other comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 13
NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT D) (e) Related parties (A) A person, or a close member of that person s family is related to the College if that person: (i) has control or joint control over the College; (ii) has significant influence over the College; or (iii) is a member of the key management personnel of the College or of a parent of the College. (B) An entity is related to the College if any of the following conditions applies: (i) The entity and the College are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (iii) Both entities are joint ventures of the same third party. (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third party. (v) The entity is a post-employment benefit plan for the benefit of employees of either the College or an entity related to the College. (vi) The entity is controlled or jointly controlled by a person identified in (A). (vii) A person identified in (A)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the College. 14
NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT D) (f) Related party transactions A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. (g) Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined on the weighted average basis and includes all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and other estimated costs necessary to make the sale. At the end of each reporting period, inventories are assessed for impairment and the carrying amount is reduced to its net realisable value with the impairment loss recognised immediately in the statement of comprehensive income. (h) Financial instruments (i) Financial assets The College s financial assets include accounts and other receivables and are classified and accounted for as loans and receivables. Financial assets are recognised on the trade date. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for the amounts that are settled or expected to be settled more than twelve months after the end of the reporting period. These are classified as non-current assets. Loans and receivables are initially recognised at fair value plus any directly attributable transaction costs and subsequently measured at amortised cost using the effective interest method, less impairment loss, if any. Any changes in their value are recognised in the statement of profit or loss and other comprehensive income. 15
NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT D) (h) Financial instruments (cont d) (i) Financial assets (cont d) Derecognition of financial assets occurs when the rights to receive cash flows from the assets have expired; or where the College has transferred its contractual rights to receive the cash flows of the financial assets and has transferred substantially all the risks and rewards of ownership; or where control is not retained. An assessment for impairment is undertaken at least at each reporting period whether or not there is objective evidence that a financial asset or a group of financial assets is impaired. Impairment loss on loans and receivables is recognised when there is objective evidence that the College will not be able to collect all the amounts due to it in accordance with the original terms of the receivables. The amount of the impairment loss is determined as the difference between the asset s carrying amount and the present value of estimated future cash flows. The carrying amount of the asset is reduced and the amount of the loss is recognised in the statement of profit or loss and other comprehensive income. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed and the amount of any reversal is recognised in the statement of profit or loss and other comprehensive income. (ii) Financial liabilities The College s financial liabilities include accounts and other payables. Financial liabilities are recognised when the College becomes a party to the contractual provisions of the instrument. Financial liabilities are initially recognised at fair value of the consideration received less directly attributable transaction costs incurred and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the obligation is discharged or cancelled, or expires. 16
NOTES TO THE FINANCIAL STATEMENTS 2. PRINCIPAL ACCOUNTING POLICIES (CONT D) (i) Impairment of assets An assessment is made at the end of each reporting period to identify whether there is any indication of impairment of any asset, or whether there is any indication that an impairment loss previously recognised for an asset in prior years may no longer exist or may have decreased. If any such indication exists, the asset s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. (i) Calculation of recoverable amount The recoverable amount of an asset is the greater of its net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of time value of money and the risks specific to the asset. Where an asset does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). (ii) Reversal of impairment losses In respect of assets other than goodwill, an impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss made against goodwill is not reversed. A reversal of impairment loss is limited to the asset s carrying amount that would have been determined had no impairment loss been recognised in prior years. Reversals of impairment losses are credited to the statement of profit or loss and other comprehensive income in the year in which the reversals are recognised. 3. CHANGES IN ACCOUNTING POLICIES In the financial statements of 2014, the College has initially applied the new and revised HKFRSs issued by the HKICPA that are first effective for accounting periods beginning on or after 1 st January, 2014, including: 17
NOTES TO THE FINANCIAL STATEMENTS 3. CHANGES IN ACCOUNTING POLICIES (CONT D) Amendments to HKAS 32 Offsetting financial assets and financial liabilities Amendments to HKAS 36 Recoverable amount disclosures for non-financial assets The application of the new and revised HKFRSs has no material effects on the College s financial performance and positions. Amendment to HKAS 32 Offsetting financial assets and financial liabilities The amendments to HKAS 32 clarify the offsetting criteria in HKAS 32. The amendments do not have an impact on these financial statements as they are consistent with the policies already adopted by the College. Amendments to HKAS 36 Recoverable amount disclosure for non-financial assets The amendments to HKAS 36 modify the disclosure requirements for impaired non-financial assets. Among them, the amendments expand the disclosures required for an impaired assets or cash generating unit those recoverable amounts is based on fair value less cost of disposal. These amendments do not have an impact on the financial statements of the College. 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The College makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. There are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. 5. LIMITED BY GUARANTEE Under Clause 6 of the Memorandum of Association, every member shall, in the event of the College being wound up, contribute such amount as may be required to meet the liabilities of the College but not exceeding HK$1 each. 18
NOTES TO THE FINANCIAL STATEMENTS 6. REVENUE AND INCOME Revenue comprises total receipts derived from members subscription fee and gross sales to members during the year. An analysis of revenue of the College recognised during the year is as follows: 2014 2013 HK$ HK$ Revenue Members subscription fee 630,000 405,000 Sale of academic gown -- 1,280 Sale of text books 3,707 -- 633,707 406,280 Other income Bank interest income 94 36 Total revenue and income 633,801 406,316 7. SURPLUS BEFORE TAX Surplus before tax has been arrived at after charging: Auditors remuneration 12,000 12,000 Cost of academic gown -- 1,280 Cost of text books 3,703 -- And after crediting: Bank interest income 94 36 19
NOTES TO THE FINANCIAL STATEMENTS 8. INCOME TAX EXPENSE The College is exempted from Hong Kong profits tax in accordance with Section 24 of the Inland Revenue Ordinance. 9. NOTE TO THE STATEMENT OF CASH FLOWS Cash and cash equivalents consist of cash balances with bank. Cash and cash equivalents included in the statement of cash flows represent the following statement of financial position amount: 2014 2013 HK$ HK$ Cash at bank 917,821 546,621 10. DEFERRED TAXATION No deferred tax has been provided in the financial statements as there were no temporary differences arising in the year. 11. GOVERNORS REMUNERATION Neither fees nor remuneration have been paid or are payable to the Governors for services in the current year. 12. CAPITAL MANAGEMENT Capital represents accumulated surplus stated in the statement of financial position. The College s objective when managing capital is to safeguard its ability to continue as a going concern, so that it can continue dedicated to promote excellence in paediatric nursing in Hong Kong through regulating the professional standards of paediatric nursing practice, conducting nursing education and promulgating nursing research. These aim at protecting the well being of the children and adolescents as well as their families in the hospital and community. 20
NOTES TO THE FINANCIAL STATEMENTS 12. CAPITAL MANAGEMENT (CONT D) The College manages capital by regularly monitoring its current and expected liquidity requirements rather than using debt/equity ratio analyses. The College is a private company limited by guarantee not having a share capital. The College s operation is mainly sourced from its accumulated surplus. The College is not subject to either internally or externally imposed capital requirements. 13. FINANCIAL INSTRUMENTS The College has classified its financial asset in the following category: Loan and receivable 2014 2013 HK$ HK$ Cash at bank 917,821 546,621 The College has classified its financial liability in the following category: Financial liability at amortised cost 2014 2013 HK$ HK$ Accrued charges 13,500 18,900 All financial instruments are carried at amounts not materially different from their fair values as at 31 st December, 2013 and 2014. The College is exposed to market risk, credit risk and liquidity risk arising in the normal course of its business and financial instruments. The College s risk management objectives, policies and processes mainly focus on minimizing the potential adverse effects of these risks on its financial performance and position by closely monitoring the individual exposure as follows: 21
NOTES TO THE FINANCIAL STATEMENTS 13. FINANCIAL INSTRUMENTS (CONT D) (a) Market risk (i) Foreign currency risk The College has no significant exposure to foreign currency risk as substantially all of the College s transactions and assets are denominated in Hong Kong dollars. (ii) Interest rate risk The College has exposure on cash flow interest rate risk mainly arising from its deposits with bank. 2014 2013 HK$ HK$ Interest bearing asset Cash at bank 783,108 315,707 At 31 st December, 2014, if the interest rate at that date decreased by 1% with all other variables held constant, the College s surplus after tax and accumulated surplus would have been decreased by HK$7,831 (2013: HK$3,157) respectively. At 31 st December, 2014, if the interest rate at that date increased by 1% with all other variables held constant, the College s surplus after tax and accumulated surplus would have been increased by HK$7,831 (2013: HK$3,157) respectively. The sensitivity analysis has been prepared with the assumption that the change in interest rates had occurred at the end of the reporting period and had been applied to the exposure to interest rate risk for the relevant financial instruments in existence at that date. The changes in interest rate represent management s assessment of a reasonably possible change in interest rates at the date over the period until the end of next reporting period. The analysis is performed on the same basis for the year 2013. 22
NOTES TO THE FINANCIAL STATEMENTS 13. FINANCIAL INSTRUMENTS (CONT D) (b) Credit risk The College is exposed to credit risk on financial assets, mainly attributable to bank balances owned by the College. 2014 2013 HK$ HK$ Cash at bank 917,821 546,621 The credit risk on liquid funds is limited because the counterparty is an authorised financial institution listed in the Hong Kong Stock Exchange and regulated under the Hong Kong Banking Ordinance. (c) Liquidity risk The College manages its funds conservatively by maintaining a comfortable level of cash and cash equivalents in order to meet continuous operational need. The following table details the remaining contractual maturities at the end of the reporting period of the College s non-derivative financial liabilities, which are based on contractual undiscounted cash flows and the earliest date the College can be required to pay: 2014 2013 Total Total contractual Within 1 contractual Within 1 Carrying undiscounted year or Carrying undiscounted year or amount cash flow on demand amount cash flow on demand HK$ HK$ HK$ HK$ HK$ HK$ Accrued charges 13,500 13,500 13,500 18,900 18,900 18,900 23
NOTES TO THE FINANCIAL STATEMENTS 14. COMPARATIVE FIGURES Certain comparative figures have been restated or re-classified as a result of the changes in accounting policies and the details of the changes in accounting policies are set out in note 3. 15. FUTURE CHANGES IN ACCOUNTING POLICIES Up to the date of issue of these financial statements, the HKICPA has issued a number of amendments, new standards and interpretations which are not yet effective for the year ended 31 st December, 2014 and which have not been adopted in these financial statements. The College is in the process of making an assessment of what the impact of these amendments, new standards and new interpretations is expected to be in the year of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the College s results of operations and financial position. 24
(For management information purpose only) HONG KONG COLLEGE OF PAEDIATRIC NURSING LIMITED DETAILED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 ST DECEMBER, 2014 2014 2013 HK$ HK$ INCOME Members subscription fee 630,000 405,000 Gross profit on sale of text books (Sch.1) 4 -- Gross profit on sale of academic gown (Sch.2) -- -- ADD: 630,004 405,000 OTHER INCOME Bank interest income 94 36 94 36 630,098 405,036 LESS: EXPENDITURE (Sch. 3) (266,186) (292,332) SURPLUS FOR THE YEAR 363,912 112,704 25
(For management information purpose only) HONG KONG COLLEGE OF PAEDIATRIC NURSING LIMITED SCHEDULES TO DETAILED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 ST DECEMBER, 2014 1. GROSS PROFIT ON SALE OF TEXT BOOK 2014 2013 HK$ HK$ Sale of text book 3,707 -- Less: Cost of text book Purchases 11,782 -- Add: Opening inventories -- -- Less: Closing inventories (8,079) -- 3,703 -- Gross profit on sale of text book 4 -- 2. GROSS PROFIT ON SALE OF ACADEMIC GOWN Sale of academic gown -- 1,280 Less: Cost of academic gown Opening inventories -- 1,280 Gross profit on sale of academic gown -- -- 26
(For management information purpose only) HONG KONG COLLEGE OF PAEDIATRIC NURSING LIMITED SCHEDULES TO DETAILED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 ST DECEMBER, 2014 3. EXPENDITURE 2014 2013 HK$ HK$ AGM expenses 3,350 12,858 Audit fee 12,000 12,000 Bank charges 400 400 Business registration fee 250 450 Clerical expenses 37,200 58,500 Computer running expenses 1,065 1,975 Membership fee 10,000 10,000 Membership vetting fee 189,000 159,450 Postage -- 70 Printing and stationery -- 499 Souvenir and sponsorship 8,471 29,620 Staff welfare -- 2,080 Sundry expenses 3,650 2,030 Training fee 800 2,400 266,186 292,332 27