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Auditor Thaveekiarti Krishnamra CPA No.104
Deloitte Touche Tohmatsu Jaiyos Co., Ltd. |
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We have audited the
balance sheets of Rama IX Art Museum Foundation as at December
31, 2007 and 2006 and the related statements of income and
expenditure and changes in funds’ equity for the years then
ended. These financial statements are the responsibility of
the Foundation’s management as to their correctness and completeness
of the presentation. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the aforementioned
financial statements present fairly, in all material respects,
the financial position of Rama IX Art Museum Foundation as
at December 31, 2007 and 2006 and the income and expenditure
and changes in funds’ equity for the years then ended in conformity
with generally accepted accounting principles. |
BANGKOK
May 13, 2008
Thaveekiarti Krishnamra
Certified Public Accountant (Thailand)
Registration No. 104
DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD.
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Rama IX Art Museum Foundation
Balance Sheets
As at December 31, 2007 and 2006 |
| |
2007 |
2006 |
| ASSETS |
|
|
| CURRENT ASSETS |
|
|
 Cash and deposits at financial institutions |
382,539 |
1,167,820 |
| Current investment (Notes 4.2 and 5) |
21,159,376 |
19,331,431 |
| Supplies (Notes 4.3 and 6) |
568,702 |
1,045,051 |
| Other current assets |
85,431 |
167,869 |
| Total Current Assets |
22,196,048 |
21,712,171 |
| |
|
|
| NON-CURRNET ASSETS |
|
|
| Equipment - net (Notes 4.4 and 7) |
750,948 |
973,656 |
| Software
- net (Note 4.4 and 8) |
45,307 |
19,224- |
| Art collection (Notes 4.5) |
18,155,153 |
17,107,153 |
| Total Non-Current Assets |
18,951,408 |
18,100,033 |
| TOTAL ASSETS |
41,147,456 |
39,812,204 |
| LIABILITIES AND FUND'S EQUITY |
|
|
| CURRENT LIABILITIES |
|
|
Accrued expenses
|
120,284 |
606,000 |
Foundation income tax payable
|
- |
35,295 |
| Total Current Liabilities |
120,284 |
641,295 |
| TOTAL LIABILITIES |
120,284 |
641,295 |
| |
|
|
| FUND'S EQUITY |
|
|
| Initial capital fund from donation |
200,000 |
200,000 |
| Additional funds from donation |
1,027,600 |
1,027,600 |
| Accumulated excess of income over expenditure |
39,799,572 |
37,943,309 |
| Total Fund's Equity |
41,027,172 |
39,170,909 |
| TOTAL LIABILITIES AND FUND'S EQUITY |
41,147,456 |
39,812,204 |
Rama IX Art Museum Foundation
Statements of Income and Expenditure
For the Years ended December 31, 2007 and 2006 |
| |
2007 |
2006 |
| INCOME |
|
|
| Donation
income |
1,084,300 |
1,084,300 |
| Donated
artworks |
317,000 |
317,000 |
| Interest
received |
3,035 |
3,035 |
| Investment
income |
1,041,079 |
1,041,079 |
| Other
income |
2,979 |
2,979 |
| Total
Income |
2,448,393 |
2,448,393 |
|
|
|
|
| EXPENDITURE |
|
|
| Salaries
and wages |
2,411,339 |
1,899,000 |
| Rental
fee |
402,144 |
397,490 |
| Professional
fees |
60,000 |
60,000 |
| Depreciation
and amortization |
256,229 |
137,733 |
| Miscellaneous
expenses |
886,107 |
409,569 |
| 60
years anniversary project expenses |
1,339,085 |
1,896,463- |
| Foundation
income tax |
67,801 |
104,709 |
| Total
Expenditure |
5,422,705 |
4,904,964 |
| EXCESS
(DEFICIT) INCOME OVER EXPENDITURE |
(1,856,263) |
(2,456,571)) |
Rama IX Art Museum Foundation
Statements of Changes in Funds' Equity
For the Years ended December 31, 2007 and 2006 |
| |
Capital Fund
From Donation
|
Accumulated
excess of income over expenditure |
Total Fund's
equity |
Initial capital
Fund |
Additional
Fund |
| BEGINNING
BALANCE, JANUARY 1, 2006 |
200,000 |
1,027,600 |
40,399,880 |
41,627,480 |
| Excess (Deficit) income over expenditure |
- |
- |
(2,456,571) |
(2,456,571) |
| ENDING
BALANCE, DECEMBER 31, 2006 |
200,000 |
1,027,600 |
37,943,309 |
39,170,909 |
BEGINNING
BALANCE, JANUARY 1, 2007
|
200,000 |
1,027,600 |
37,943,309 |
39,170,909 |
| Excess (Deficit) income over expenditure |
- |
- |
1,856,263 |
1,856,263 |
| ENDING
BALANCE, DECEMBER 31, 2007 |
200,000 |
1,027,600 |
39,799,572 |
41,027,172 |
Rama IX Art Museum Foundation
Notes to The Financial Statements
For the Years ended December 31, 2007 and 2006 |
1. OBJECTIVES OF THE FOUNDATION
Office of the National Culture Commission approved the setup
of the Rama IX Art Museum Foundation (“"the Foundation”")
on August 15, 1996. The registration for the setup of the
Foundation was completed on October 4, 1996, with the following
objectives:
1.1 To manage the Project of Art Exhibition in the honor of His Majesty King Bhumibol Adulyadej, the Supreme Artist, in Art and Culture, commemoration of the 50th anniversary of His Majesty The King’s accession to the throne.
1.2 To be responsible to fund raising in order to build up and manage a modern art museum to be named in the honor of His Majesty The King.
1.3 To support and develop knowledge of art. To collect and promote Thai artworks in the country and throughout the other countries around the world.
1.4 To promote and support the attitude to preserve the Thai contemporary art.
1.5 To organize a quality art publishing house concentrating in conventional publications and electronic educational aids for further understanding of Thai contemporary arts and to support and develop artistical knowledge.
1.6 To organize with other non-profit organization, education institution, art activities and others which have its same objectives in order to stimulate more grants and funding for public and young artists.
1.7 To encourage local and international artistic and cultural collaborations in order to support objectives of the foundation.
2. FUNDING POLICIES
The Foundation was established with the initial funds of Baht 200,000. The Foundation may raise additional funds as follows:.
2.1 Funds provided by Governmental organizations or state enterprises, or others in the country.
2.2 Funds or properties donated by charitable persons or organizations in the country or abroad.
2.3 Fund or properties bequeathed under a will or other juristic acts, provided that there are no conditions obligating the Foundation to any liabilities or whatsoever.
2.4 Interest and dividends arising from funds and the property which constitute the assets of the Foundation.
2.5 Contributions from the usage of the property or facilities of the Foundation, or services provided by the Foundation with free of charge.
2.6 Other income from the Foundation's activities.
3. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Foundation prepares its statutory financial statements in the Thai language in accordance with accounting principles and practices generally accepted in Thailand.
The financial statements are prepared in accordance with
the Notification of the Department of Commercial Registration
(currently the Department of Business Development) dated
September 14, 2001 regarding "The Brief Particulars
in the Financial Statements B.E.2544".
According to the Federation of Accounting Professions'
Announcement No. 21/2550 regarding "Exemption of Accounting
Standards", the Foundation elected to adopt the exemption
by not applying Thai Accounting Standard No.25 "Cash
Flow Statements" and No. 48 "Financial Instruments
Disclosure and Presentation".
The Federation of Accounting Professions has issued Notifications
of Federation of Accounting Professions No. 9/2550 dated
May 2, 2007, No. 38/2550 dated September 21, 2007 and No.
62/2550 dated December 7, 2007 regarding the following accounting
standards that were announced in the Royal Gazette, but
were not in effect in 2007:
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TAS 25 |
(Revised 2007) |
Cash Flow Statements |
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TAS 29 |
(Revised 2007) |
Leases |
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TAS 31 |
(Revised 2007) |
Inventories |
| |
TAS 33 |
(Revised 2007) |
Borrowing Costs |
| |
TAS 35 |
(Revised 2007) |
Presentation of Financial
Statements |
| |
TAS 39 |
(Revised 2007) |
Accounting Policies, Changes
in Accounting Estimates and Errors |
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TAS 41 |
(Revised 2007) |
Interim Financial Reporting |
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TAS 43 |
(Revised 2007) |
Business Combination |
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TAS 49 |
(Revised 2007) |
Construction Contracts |
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TAS 51 |
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Intangible Assets |
These accounting standards will supersede previously issued
accounting standards when they become effective. The management
has assessed the impact of these accounting standards, when
they are effective, for financial periods beginning on or
after January 1, 2008 and does not expect them to have a
material effect on the Foundation financial statements.
4. SIGNIFICANT ACCOUNTING POLICIES
4.1 Income and expenditure recognition
Income and expenditure are recognized on an accrual basis, except for income from donation, which is recognized on cash basis.
4.2 Investment
Securities classified as available for sale are sated at fair value. Gain or loss on the change in fair value is recognized as a component of shareholders' equity.
In case an impairment in value of an investment has occurred, a provision for impairment is recognized in the statement of income.
For equity securities which are listed securities, fair value or market value are estimated using the bidding prices at the Stock Exchange of Thailand on the last business day of the year.
4.3 Supplies
Supplies are stated at cost which is calculated on an average basis.
4.4 Equipment and intangible assets
Equipment is stated at cost less accumulated depreciation.
Intangible asset which is software is stated at cost
less accumulated amortization.
Depreciation is calculated by the straight-line method, based on the estimated useful lives of the assets as follows:
| Office equipment |
5 |
years |
| Software |
5 |
years |
For office equipment, which was transferred from the
Golden Jubilee Art Celebration, depreciation is based
on its remaining useful life.
4.5 Art collection
The artworks transferred from the Golden Jubilee Art Celebration as well as donated by artists, are estimated their value by individual artists.
5. CURRENT INVESTMENT
Current investment as at December 31, consist of the following: |
| |
2007 |
2006 |
| |
Cost
Baht |
Fair value
Baht |
Cost
Baht |
Fair value
Baht |
| Available-for-sales securities |
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|
|
| Securities investment |
21,159,376 |
21,159,376 |
19,331,431 |
19,331,431 |
| Add (less) Revaluation surplus (deficit) |
|
|
|
|
| on investments |
- |
- |
- |
- |
| |
21,159,376 |
21,159,376 |
19,331,431 |
19,331,431 |
6. SUPPLIES
Supplies as at December 31, consist of the following: |
|
2007
Baht |
2006
Baht |
| T-shirts |
- |
325,780 |
| Art in the Reign of Rama IX Books and art catalogues |
555,004 |
697,655 |
| CD Project 6 Decades |
13,698 |
21,616 |
| |
568,702 |
1,045,051 |
| Supplies will be given to donors who provide the Foundation with financial support. |
7. EQUIPMENT
Equipment - net as at December 31, consists of the following:
|
|
Balance
December 31,
2006 |
Additions/
Transfer in |
Write-off |
Balance
December 31,
2007 |
| Baht |
| Cost: |
|
|
|
|
| Office equipment |
1,383,611 |
24,076 |
- |
1,407,687 |
|
1,383,611 |
24,0766 |
- |
1,407,687 |
| Accumulated depreciation: |
|
|
|
|
| Office equipment |
(409,955) |
(246,784) |
- |
(656,739) |
|
(409,955) |
(246,784) |
- |
(656,739) |
| Equipment - net |
973,656 |
|
|
750,948 |
| Depreciation
for the years |
|
|
|
|
| 2006 |
|
|
|
246,784 |
| 2005 |
|
|
|
133,417 |
8. SOFTWARE - NET
Software - net as at December 31, consists of the following: |
|
Balance
as at
December 31,
2006 |
Additions |
Disposals |
Balance
as at
December 31,
2007 |
| Baht |
| Software |
23,540 |
35,528 |
- |
59,068 |
| Less
Accumulated amortization |
(4,316) |
(9,445) |
- |
(13,761) |
| Software
- net |
19,224 |
|
|
45,307 |
|
|
|
|
|
| Amortization
for the years |
|
|
|
|
| 2007 |
|
|
|
9,445 |
| 2006 |
|
|
|
4,316 |
9. APPROVAL OF FINANCIAL STATEMENTS
These financial statements have been approved for issuing by
the authorized director of the Foundation on May 13, 2008. |
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