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 government organization, private organization, partnership, local and international company and international culture 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 maintains its accounting records in Thai Baht and prepares its statutory financial statements in the Thai language in conformity with accounting standards and practices generally accepted in Thailand.

The financial statement of the Foundation are prepared in compliance with the Department of Business Development regarding "The Brief Particulars in the Financial statements B.E.2552" dated January 30, 2009.

According to the Federation of Accounting Professions' Notification No. 21/2550 regarding "Exemption of Accounting Standards", the Foundation elected to adopt the exemption by not applying Thai Accounting Standard No.7 (Revised 2007) "Cash Flow Statements", No. 24 (Revised 2007) "Related Party Disclosures" and No. 107 "Financial Instruments : Disclosure and Presentation".

The Federation of Accounting Professions has issued the Notifications regarding the new and revised Thai Accounting Standards (TAS), Thai Financial Reporting Standards (TFRS) and Thai Financial Reporting Interpretation (TFRI), which are not yet effective for the current period as follows:

a) TAS, TFRS and TFRI which are effective on January 1, 2011:

The Foundation's management will adopt the above TAS, TFRS and TFRI relevant to the Foundation in the preparation of Foundation's financial statements when they become effective. The Foundation's management has assessed the effects of these standards and believes that they will not have any significant impact on the financial statements for the period in which they are initially applied.

b) TAS which are effective on January 1, 2013:

The Foundation's management anticipates that the Foundation will adopt the above TAS relevant to the Foundation in the preparation of Foundation's financial statements when they become effective. The Foundation's management is in the process of assessing the impact of these standards on the financial statements for the period in which they are initially applied.

The financial statements have been prepared under the historical cost convention excerpt as disclosed the significant accounting policies.

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 Temporary investment

Temporary investment are carried at fair value. Change in fair value of investment are recognized in the statement of income.

In case an impairment in value of an investment has occurred, a provision for impairment is recognized in the statements of income and a related allowance for impairment is established.

4.3 Supplies

Supplies are stated at cost which is calculated on an average basis.

4.4 Building, equipment and intangible assets

Building and Equipment is stated at cost less accumulated depreciation.

Intangible asset which is software is stated at cost less accumulated amortization.

Depreciation and amortization 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
Building Improvement	3	years

For office equipment, which was transferred from the Golden Jubilee Art Celebration, depreciation is calculated by the straight-line method, 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.

4.6 Use of accounting estimates

The preparation of financial statements in conformity with generally accepted accounting principles also requires the Foundation's management to exercise judgments in on order to determine the accounting policies, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the reporting period. Although, these estimates are base on management's reasonable consideration of current events, actual results may differ from these estimates.

5. TEMPORARY INVESTMENT

As at December 31, 2010 and 2009, the unrealized gain on investment in short-term fixd income fund and opend-end fund are as follows:

10. RECLASSIFICATIONS

Curtain accounts in the financial statements for the year ended December 31, 2009 have been reclassified to conform to the presentation in the financial statements for the year ended December 31, 2010 as follows: