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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, 2005 and 2004 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, 2005 and 2004 and the income and expenditure and changes in funds’ equity for the years then ended in conformity with generally accepted accounting principles. |
BANGKOK
May 9, 2006
Thaveekiarti Krishnamra
Certified Public Accountant (Thailand)
Registration No. 104
DELOITTE TOUCHE TOHMATSU JAIYOS AUDIT CO., LTD. |
Rama IX Art Museum Foundation
Balance Sheets
As at December 31, 2005 and 2004 |
| |
2005 |
2004 |
| ASSETS |
|
|
| CURRENT ASSETS |
|
|
 Cash and deposits at financial institutions |
333,700 |
1,964,531 |
| Current investment (Notes 4.2 and 5) |
23,362,389 |
23,043,995 |
| Supplies (Notes 4.3 and 6) |
705,520 |
707,749 |
| Other current assets |
149,180 |
91,069 |
| Total Current Assets |
24,550,789 |
25,807,344 |
| |
|
|
| NON-CURRNET ASSETS |
|
|
| Equipment (Notes 4.4 and 7) |
384,798 |
314,082 |
| Art collection (Notes 4.5) |
16,790,153 |
16,312,653 |
| Total Non-Current Assets |
17,174,951 |
16,626,735 |
| TOTAL ASSETS |
41,725,740 |
42,434,079 |
| LIABILITIES AND FUND'S EQUITY |
|
|
| CURRENT LIABILITIES |
|
|
Accrued expenses
|
98,260 |
55,621 |
Foundation income tax payable
|
- |
33,706 |
| Total Current Liabilities |
98,260 |
89,327 |
| TOTAL LIABILITIES |
98,260 |
89,327 |
| |
|
|
| 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 |
40,399,880 |
41,117,152 |
| Total Fund's Equity |
41,627,480 |
42,344,752 |
| TOTAL LIABILITIES AND FUND'S EQUITY |
41,725,740 |
42,434,079 |
Rama IX Art Museum Foundation
Statements of Income and Expenditure
For the Years ended December 31, 2005 and 2004 |
| |
2005 |
2004 |
| INCOME |
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|
| Donation income |
1,076,040 |
27,853,500 |
| Donated artworks |
477,500 |
460,555 |
| Interest received |
45,077 |
1,407 |
| Advisory fee |
25,000 |
342,883 |
| Investment income |
327,233 |
45,137 |
| Rental fee |
19,396 |
- |
| Total Income |
1,970,246 |
28,703,482 |
| EXPENDITURE |
|
|
| Salaries and wages |
1,774,625 |
1,527,150 |
| Rental fee |
213,443 |
128,400 |
| Administrative expenses |
- |
796,648 |
| Professional fees |
60,000 |
45,000 |
| Depreciation |
103,110 |
101,211 |
| Miscellaneous expenses |
494,669 |
744,770 |
| Foundation income tax |
41,671 |
38,943 |
| Total Expenditure |
2,687,518 |
3,382,122 |
| EXCESS (DEFICIT) OF INCOME OVER EXPENDITURE |
(717,272) |
(25,321,360) |
Rama IX Art Museum Foundation
Statements of Changes in Funds' Equity
For the Years ended December 31, 2005 and 2004 |
| |
Capital Fund
From Donation
|
Accumulated
excess of income
over expenditure |
Total
Fund's
equity |
Initial capital
Fund |
Additional
Fund |
| BEGINNING BALANCE, JANUARY 1, 2004 |
200,000 |
1,027,600 |
15,795,792 |
17,023,392 |
| Excess of income over expenditure |
- |
- |
25,321,360 |
25,321,360 |
| ENDING BALANCE, DECEMBER 31, 2004 |
200,000 |
1,027,600 |
41,117,152 |
42,344,752 |
BEGINNING BALANCE, JANUARY 1, 2005
|
200,000 |
1,027,600 |
41,117,152 |
42,344,752 |
| Excess of income over expenditure |
- |
- |
(717,272) |
(717,272) |
| ENDING BALANCE, DECEMBER 31, 2005 |
200,000 |
1,027,600 |
40,399,880 |
41,627,480 |
Rama IX Art Museum Foundation
Notes to The Financial Statements
For the Years ended December 31, 2005 and 2004 |
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".
The Board of Supervision of Auditing Practices (BSAP) issued an announcement No. 47 (B.E. 2545) re: Exemption of Accounting Standards for Non-public Limited Company. Accordingly, the Company adopted the exemption of the application of the Thai Accounting Standards No. 25 "Cash Flow Statements" and No. 48 "Financial Instruments Disclosure and Presentation".
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 software
Equipment and software is stated at cost.
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 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: |
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2005 |
2004 |
| |
Cost
Baht |
Fair value
Baht |
Cost
Baht |
Fair value
Baht |
| Available-for-sales securities |
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|
|
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| Securities investment |
23,362,389 |
23,362,389 |
23,043,995 |
23,043,995 |
| Add (less) Revaluation surplus (deficit) |
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|
|
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| on investments |
- |
- |
- |
- |
| |
23,362,389 |
23,362,389 |
23,043,995 |
23,043,995 |
6. SUPPLIES
Supplies as at December 31, consist of the following: |
|
2005
Baht |
2004
Baht |
| T-shirts |
325,780 |
327,335 |
| Art in the Reign of Rama IX Books and art catalogues |
379,740 |
380,414 |
| |
705,520 |
707,749 |
| Supplies will be given to donors who provide the Foundation with financial support. |
7. EQUIPMENT
Equipment consists of the following: |
|
Balance
December 31,
2004 |
Additions/
Transfer in |
Write-off |
Balance
December 31,
2005 |
| Baht |
| Cost: |
|
|
|
|
| Office equipment |
1,898,879 |
174,154 |
(1,411,698) |
661,335 |
|
1,898,879 |
174,154 |
(1,411,698) |
661,335 |
| Accumulated depreciation: |
|
|
|
|
| Office equipment |
(1,584,797) |
(103,110) |
1,411,370 |
(276,537) |
|
(1,584,797) |
(103,110) |
1,411,370 |
(276,537) |
| Equipment-net |
314,082 |
|
|
384,798 |
| Depreciation for the year |
|
|
|
|
| 2005 |
|
|
|
103,110 |
| 2004 |
|
|
|
101,211 |
8. APPROVAL OF FINANCIAL STATEMENTS
These financial statements have been approved for issuing by the authorized director of the Foundation on May 9, 2006. |
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