Notes to Financial Statements
For the year ended (Date)
1. CORPORATE INFORMATION (This portion will depend on the nature of the business)
(Corporation’s Name) is a duly registered non stock corporation under registration number (Registration Number) and its principal office is located at (Address). The amended articles of incorporation were approved on (Date of Approval) and the expiration is on (Date of Expiration). The purpose of the corporation are as follows: (purpose)
The total membership fund of the non stock corporation is (Amount) derived from the contributions and donations of the members.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principal accounting policies applied by the company in the preparation of its financial statements are enumerated below and are consistently applied to all the years, unless otherwise stated.
Basis of Preparation
The company’s financial statements have been prepared under the historical cost basis, except for those relating to the classification and measurement of financial instruments.
The following revised standards were also adopted in 2006 but had no material impact on the company’s financial statements. Required disclosures were included in the financial statements where applicable.
PAS 1 “ Presentation of Financial Statements ”
PAS 7 “ Cash Flow Statements ”
PAS 8 “ Accounting Policies, Changes in Accounting Estimates and Errors ” PAS 10 “ Events after the Balance Sheet Date ”
PAS 12 “ Income Taxes ”
PAS 16 “ Property and Equipment ”
PAS 18 “ Revenue ”
PAS 32 “ Financial Instruments: Disclosure and Presentation “ PAS 37 “ Provisions, Contingent Liabilities and Contingent Assets “ PAS 39 “ Financial Instruments: Recognition and Measurement “
* PAS 1 “ Presentation of Financial Statements “ – provides a framework within which an entity assesses how to present fairly the effects of the transaction and other events; provides the base criteria for classifying liabilities as current and non-current; prohibits the presentation of income from operating activities and extraordinary items as separate line items in the statements of income; and specifies the disclosures about key sources of estimation uncertainty and judgment that management had made in the process of applying the entity’s accounting policies.
* PAS 7 “ Cash Flow Statements “ – requires the presentation of information about the historical changes in cash and cash equivalents of an enterprise by means of cash flows during the period into operating, investing and financing activities.
* PAS 8 “ Accounting Policies, Changes in Accounting Estimates and Errors “ – eliminates the concept of fundamental error and require retrospective application of voluntary changes in accounting policies and retrospective restatement to correct prior period errors. The standards define material omission and misstatements and to describe how to apply the concept of materiality when applying accounting policies and correcting errors. * PAS 10 “ Events after the Balance Sheet Date” - prescribes when the entity should adjust its financial statements for events after the balance sheet date and requires the disclosure of the date when the financial statements were authorized for issue and other subsequent events. * PAS 12 “ Income Taxes “ – prescribes the accounting treatment for income taxes and its presentation and disclosure in the financial statements. It requires the recognition of deferred tax asset and liability for timing difference in tax benefits or payments.
* PAS 16 “ Property and Equipment “ – provides additional guidance and clarification on the recognition and measurement of items of property, plant and equipment. It also provides that each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item...