financial statements for the financial year ended 31 … filereg. no. ros 0207/2003 spo uen:...

SINGAPORE GYMNASTICS (Registered in the Republic of Singapore)

Reg. No. ROS 0207/2003 SPO

UEN: T03SS0136E

IPC: 000511

FINANCIAL STATEMENTS FOR THE

FINANCIAL YEAR ENDED 31 MARCH 2018

SINGAPORE GYMNASTICS

(Registered in the Republic of Singapore) Reg. No. ROS 0207/2003 SPO

UEN: T03SS0136E

IPC: 000511

STATEMENT BY THE MANAGEMENT COMMITTEE

AND FINANCIAL STATEMENTS

C O N T E N T S

PAGE

Statement by The Management Committee 1

Independent Auditor’s Report 2 – 4

Statement of Financial Position 5

Income and Expenditure Statement 6 – 9

Statement of Cash Flows 10 – 11

Notes to the Financial Statements 12 – 26

1



UEN: T03SS0136E

IPC: 000511

STATEMENT BY THE MANAGEMENT COMMITTEE

In the opinion of the Management Committee:

(a) the accompanying financial statements set out on pages 5 to 26 are drawn up so as to give a true

and fair view of the financial position of Singapore Gymnastics as at 31 March 2018 and of the

financial performance and cash flows of Singapore Gymnastics for the financial year ended on

that date in accordance with the provisions of the Singapore Societies Act, Cap 311, the

Charities Act, Chapter 37 and other relevant regulations and Singapore Financial Reporting

Standards; and

(b) at the date of this statement, there are reasonable grounds to believe that Singapore Gymnastics

will be able to pay its debts as and when they fall due.

On behalf of the Management

Committee

………………………………….. Choy Kah Kin

President

………………………………….. Lim Chin Keong

Honorary Treasurer

SINGAPORE

10 September 2018

2

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF



UEN: T03SS0136E

IPC: 000511

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of Singapore Gymnastics (the “Association”), which

comprise the statement of financial position as at 31 March 2018, and the income and expenditure

statement and statement of cash flows for the year then ended, and notes to the financial statements,

including a summary of significant accounting policies.

In our opinion, the accompanying financial statements are properly drawn up in accordance with the

provisions of the Societies Act, Chapter 311 (the Societies Act), the Charities Act, Chapter 37 and

other relevant regulations (the Charities Act and Regulations) and Financial Reporting Standards in

Singapore (FRSs) so as to present fairly, in all material respects, the state of affairs of the Association

as at 31 March 2018 and the results, and cash flows of the Association for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with Singapore Standards on Auditing (SSAs). Our

responsibilities under those standards are further described in the Auditor’s Responsibilities for the

Audit of the Financial Statements section of our report. We are independent of the Association in

accordance with the Accounting and Corporate Regulatory Authority (ACRA) Code of Professional

Conduct and Ethics for Public Accountants and Accounting Entities (ACRA Code) together with the

ethical requirements that are relevant to our audit of the financial statements in Singapore, and we

have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA

Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

Other Information

Management Committee is responsible for the other information. The other information comprises the

Management Committee’s Statement set out on page 1.

Our opinion on the financial statements does not cover the other information and we do not express

any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially

misstated. If, based on the work we have performed, we conclude that there is a material misstatement

of this other information, we are required to report that fact. We have nothing to report in this regard.

3

Responsibilities of Management Committee for the Financial Statements

Management Committee is responsible for the preparation and fair presentation of the financial

statements in accordance with the provisions of the Societies Act, the Charities Act and Regulations,

and FRSs, and for such internal control as Management Committee determines is necessary to enable

the preparation of financial statements that are free from material misstatement, whether due to fraud

or error.

In preparing the financial statements, Management Committee is responsible for assessing the

Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going

concern and using the going concern basis of accounting unless management either intends to

liquidate the Association or to cease operations, or has no realistic alternative but to do so.

The Management Committee’s responsibilities include overseeing the Association’s financial

reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level assurance, but is not a guarantee that

an audit conducted in accordance with SSAs will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in

the aggregate, they could reasonably be expected to influence the economic decisions of users taken

on the basis of these financial statements.

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain

professional scepticism throughout the audit. We also:

● Identify and assess the risks of material misstatement of the financial statements, whether due to

fraud or error, design and perform audit procedures responsive to those risks, and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the

override of internal control.

● Obtain an understanding of internal control relevant to the audit 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 Association’s internal control.

● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the Management Committee.

● Conclude on the appropriateness of Management Committee’s use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast significant doubt on the Association’s ability to

continue as a going concern. If we conclude that a material uncertainty exists, we are required to

draw attention in our auditor’s report to the related disclosures in the financial statements or, if

such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit

evidence obtained up to the date of our auditor’s report. However, future events or conditions

may cause the Association to cease to continue as a going concern.

● Evaluate the overall presentation, structure and content of the financial statements, including the

disclosures, and whether the financial statements represent the underlying transactions and

events in a manner that achieves fair presentation.

4

Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)

We communicate with the Management Committee regarding, among other matters, the planned

scope and timing of the audit and significant audit findings, including any significant deficiencies in

internal control that we identify during our audit.

Report on Other Legal and Regulatory Requirements

In the previous financial year, our report mentioned that the Association has not complied with the

requirements of Regulation 9 (3) of the Charities (Institutions of a Public Character) Regulations in

respect of the form and contents to be included in the tax deduction receipts as specified by the Sector

Administrator. The Association has complied with these requirements in the current financial year.

In our opinion, during the course of our audit, nothing has come to our attention that causes us to

believe that during the year:

(a) The Association has not used the donation moneys in accordance with its objectives as required

under Regulation 11 of the Charities (Institutions of a Public Character) Regulations; and;

(b) The Association has not complied with the requirements of Regulation 15 of the Charities

(Institutions of a Public Character) Regulations.

In our opinion, the accounting and other records required to be kept by the Association have been

properly kept in accordance with the provisions of the Societies Regulations enacted under the

Societies Act, the Charities Act and Regulations.

C. C. YANG & CO.

PUBLIC ACCOUNTANTS AND

CHARTERED ACCOUNTANTS

YANG CHING CHAO

Partner of the firm

SINGAPORE

10 September 2018

5



UEN: T03SS0136E

IPC: 000511

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2018

(Expressed in Singapore Dollars)

2 0 1 8 2 0 1 7

Note $ $

ASSETS

Non-Current Assets

Property, plant and equipment 3 94,390 130,690

Total non-current assets 94,390 130,690

Current Assets

Inventories, at cost - 2,858

Other receivables 4 183,253 95,041

Prepayments 10,619 9,018

Fixed deposit 5 50,000 55,816

Cash and bank balances 5 461,158 454,804

Deferred expenditure, net 6 37,817 -

Total current assets 742,847 617,537

Total Assets $ 837,237 $ 748,227

FUNDS AND LIABILITIES

Funds

Reserve fund 7 456,226 582,458

Total funds 456,226 582,458

Current Liabilities

Accruals and other payables 8 381,011 165,769

Total current liabilities 381,011 165,769

Total Funds and Liabilities $ 837,237 $ 748,227

The accompanying notes form an integral part of these financial statements

6



UEN: T03SS0136E

IPC: 000511

INCOME AND EXPENDITURE STATEMENT

FOR THE YEAR ENDED 31 MARCH 2018


2 0 1 8

2 0 1 7

Note $

$

INCOME

General Income

Gain on disposal of property, plant and

equipment

470

3,000

Government grants

1,944

4,164

Interest income

770

124

Other income

13,119

12,280

Rental of equipment

750

663

Sale of SG items

-

925

Total General Income

17,053

21,156

Total Membership

15,579

30,714

National Training Centre

NTC training fee

306,097

212,225

NTC other income

36,846

-

Total National Training Centre

342,943

212,225

High Performance OTC

HP participation fees

125,789

86,220

FIG athlete license collection

-

3,680

SNOC funding

10,024

-

Other funding

15,150

-

Total High Performance OTC

150,963

89,900

Participation (Capability)

Workshop participation fee

13,135

-

National Professional Awards Program 2,960

-

Total Participation (Capability)

16,095

-

7

2 0 1 8

2 0 1 7

Note $

$

Event

National Championship

96,505

62,045

Singapore Open

198,634

148,758

Gym Challenge

2,000

-

GymFest

53

3,920

Grading Exercise

-

24,350

Annual Awards Dinner

- Tax exempt

29,263

-

- Non-tax exempt

5,070

-

Total Event

331,525

239,073

Education

Coaching courses & workshops

10,117

23,189

Judging courses & workshops

17,572

32,135

Total Education

27,689

55,324

Sponsorship & Fund Raising

Sponsorship income

679

5,000

Donations

- Tax exempt

2,120

110

Donation in kind - Gym equipment

-

16,830

Golf charity

- Tax exempt

-

171,559

- Non-tax exempt

-

40,311

Total Sponsorship & Fund Raising

2,799

233,810

TOTAL INCOME

904,646

882,202

EXPENSES

National Training Centre

NTC coaches salaries

759,495

635,225

NTC other expenses

72,461

20,501

NTC financial assistance scheme

34,530

2,416

NTC venue hire

560,576

664,943

Total National Training Centre

1,427,062

1,323,085

Participation

National Prof Awards Program

17,127

-

KinderGym license

10,080

-

Other participation activity expenses

21,089

15,110

Total Participation

48,296

15,110

Event

National Championships

146,879

58,172

Singapore Open

311,599

129,096

Gym Challenge

3,404

-

GymFest

560

8,072

Grading Exercise

-

17,788

Annual Awards Dinner

20,548

-

Total Event

482,990

213,128

8

2 0 1 8

2 0 1 7

Note $

$

Total High Performance OTC

310,529

308,855

Total Spex Scholarship Exp (SSI)

66,858

11,253

Total Education

42,609

27,866

Total Membership

14,297

9,366

Total Staff Cost

541,885

447,860

Total Sponsorship & Fund Raising

4

46,950

Other Operating Expenses

Advertisement

611

351

AGU membership

594

1,914

AGU/FIG congress meeting

-

2,044

Allowance for impairment of other

receivables, net

9,529

16,208

Audit fee

4,000

3,440

Bad debts written off

420

-

Bank charges

1,659

692

Book keeping

1,140

4,561

Computer expenses

760

2,683

Consumables

-

1,066

Depreciation 3 45,856

84,746

Electricity charges

786

1,415

FIG membership fee

1,372

1,077

Flower & gifts

-

427

Insurance

14,112

15,679

MC expenses

822

-

Office rental

137,578

-

Other expenses

1,321

6,243

Other subscriptions

1,000

-

Photocopier rental & charges

9,675

11,959

Postage & courier

597

481

Professional fees

5,332

1,365

Property, plant and equipment written off -

44

Refreshment & entertainment

839

1,850

Repair & office maintenance

-

246

SNOC/SportsSG Awards

25

665

Stationery & sundry

3,116

2,619

Telephone, fax & internet

5,739

3,422

Transportation & parking

5,801

8,062

Total Other Operating Expenses

252,684

173,259

TOTAL EXPENSES

3,187,214

2,576,732

9

2 0 1 8

2 0 1 7

Note $

$

DEFICIT BEFORE SUBSIDIES AND INCOME

TAX

(2,282,568)

(1,694,530)

Add:

SUBSIDIES RECEIVED

SportSG Cash Funding

1,118,124

1,073,733

SportSG Non Cash Funding

984,450

726,493

SSI – Spexscholarship

74,043

44,942

SURPLUS (DEFICIT) BEFORE INCOME TAX ( 105,951)

150,638

Less:

INCOME TAX EXPENSE 9 -

-

SURPLUS (DEFICIT) AFTER INCOME TAX

TRANSFERRED TO RESERVE FUND 7 ( 105,951)

150,638


10



UEN: T03SS0136E

IPC: 000511

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2018


2 0 1 8 2 0 1 7

Note $ $

Operating activities

Surplus (Deficit) before income tax ( 105,951) 150,638

Total adjustments 54,565 81,044

Allowance for impairment of other

receivables

9,529 16,208

Bad debts written off 420 -

Depreciation 45,856 84,746

Donation in kind – Gym equipment - ( 16,830)

Gain on disposal of property, plant and

equipment ( 470) ( 3,000)

Property, plant and equipment written off - 44

Interest income ( 770) ( 124)

Operating surplus (deficit) before working

capital changes ( 51,386) 231,682

Total changes in working capital 80,521 ( 175,605)

Decrease in inventories 2,858 1,436

Increase in other receivables ( 98,161) ( 54,035)

Decrease (Increase) in prepayments ( 1,601) 14,910

Increase (Decrease) in accruals and other

payables

215,242 ( 137,916)

Increase in deferred expenditure, net ( 37,817) -

Cash flows generated from operations 29,135 56,077

Interest received 770 124

Net cash flows from operating activities 29,905 56,201

11

2 0 1 8 2 0 1 7

Note $ $

Investing activities

Purchase of property, plant and equipment ( 9,556) ( 33,157)

Proceeds from disposal of property, plant

and equipment 470 3,000

Placement of fixed deposits - ( 827)

Withdrawal of fixed deposits 5,816 -

Net cash flows used in investing activities ( 3,270) ( 30,984)

Financing activities

Utilisation of unrestricted funds 7 ( 20,281) -

Net cash flows used in financing activities ( 20,281) -

Net increase in cash and cash equivalents 6,354 25,217

Cash and cash equivalents at beginning of the year 454,804 429,587

Cash and cash equivalents at end of the year 5 $ 461,158 $ 454,804


12



UEN: T03SS0136E

IPC: 000511

NOTES TO THE FINANCIAL STATEMENTS – 31 MARCH 2018

These notes form an integral part of and should be read in conjunction with the accompanying

financial statements.

1. GENERAL INFORMATION

Singapore Gymnastics (“Association”) is an association registered in the Republic of

Singapore whose registered office and principal place of business is located at 3 Stadium

Drive #01-33 Singapore 397630.

The principal activities of the Association are to promote amateur gymnastics disciplines in

Singapore, organise and co-ordinate competitions and events for gymnastics.

The Association has been approved as a charity under the Charities Act and Charities

(Registration of Charities) Regulations with effect from 10 December 2010 and has obtained

its IPC status from 26 October 2016 to 25 October 2019.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements of the Association have been prepared in accordance with

Singapore Financial Reporting Standards (FRS).

The financial statements have been prepared on the historical cost basis except as

disclosed in the accounting policies below.

Functional currency

The functional currency of the Association is the Singapore dollars. As funds and

expenditures are denominated primarily in Singapore dollars and receipts from

operations are usually retained in Singapore dollars, the Management Committee is

of the opinion that the Singapore dollars reflect the economic substance of the

underlying events and circumstances relevant to the Association.

The financial statements are presented in Singapore dollars.

2.2 Changes in accounting policies

The accounting policies adopted are consistent with those of the previous financial

year except in the current financial year, the Association has adopted all the new and

revised standards that are relevant to its operations and effective for annual financial

periods beginning on or after 1 April 2017. The adoption of these standards did not

have any effect on the financial performance or position of the Association.

13

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.3 Standards issued but not yet effective

The Association has not adopted the following standards and interpretations that have

been issued but are only effective for annual financial periods beginning on or after

the respective dates.

Effective 1 January 2018

FRS 109 Financial Instruments

FRS 115 Revenue from Contracts with Customers

Amendments to FRS 115 Clarifications to FRS 115 Revenue from

Contracts with Customers

INT FRS 122 Foreign Currency Transactions and

Advance Consideration

Effective 1 January 2019

Amendments to FRS 109 Prepayment Features With Negative

Compensation

FRS 116 Leases

Except for FRS 109, FRS 115 and FRS 116, the Management Committee expects that

the adoption of the other standards above will have no material impact on the

financial statements in the period of initial application. The nature of the impending

changes in accounting policy on adoption of FRS 109, FRS 115 and FRS 116 is

described below.

FRS 109 Financial Instruments

FRS 109 was introduced to replace FRS 39 Financial Instruments: Recognition and

Measurement. FRS 109 changes the classification and measurement requirements for

financial assets and liabilities, and also introduces a three-stage impairment model

that will impair financial assets based on expected losses regardless of whether

objective indicators of impairment have occurred. This standard also provides a

simplified hedge accounting model that will align more closely with the entity’s risk

management strategies. The Management Committee is currently evaluating the

impact of FRS 109 on the financial statements.

FRS 115 Revenue from Contracts with Customers

FRS 115 is a new standard which establishes a single comprehensive model for

entities to use in accounting for revenue arising from contracts with customers. FRS

115 will supersede the current revenue recognition guidance including FRS 18

Revenue, FRS 11 Construction Contracts, and the related interpretations when it

becomes effective.

The core principle of FRS 115 is that an entity should recognise revenue to depict the

transfer of promised goods or services to customers in an amount that reflects the

consideration to which the entity expects to be entitled in exchange for those goods or

services. Under FRS 115, an entity recognises revenue when a performance

obligation is satisfied, i.e. when control of the goods or services underlying the

particular performance obligation is transferred to the customer.

14


2.3 Standards issued but not yet effective (Cont’d)

FRS 115 Revenue from Contracts with Customers (Cont’d)

FRS 115 also includes a cohesive set of disclosure requirements that would result in

an entity providing users of financial statements with comprehensive information

about the nature, amount, timing and uncertainty of revenue and cash flows arising

from the entity’s contracts with customers. The Management Committee is currently

evaluating the impact of FRS 115 on the financial statements.

FRS 116 Leases

FRS 116 supersedes FRS 17 Leases and introduces a new single lease accounting

model which eliminates the current distinction between operating and finance leases

for lessees. FRS 116 requires lessees to recognise right-of-use assets and lease

liabilities for all leases with a term of more than 12 months, except where the

underlying asset is of low value. The right-of-use asset is depreciated and interest

expense is recognised on the lease liability. The accounting requirements for lessors

have not been changed substantially, and continue to be based on classification as

operating and finance leases. Disclosure requirements have been enhanced for both

lessors and lessees. The Management Committee is currently assessing the impact of

FRS 116 on the financial statements.

2.4 Property, plant and equipment

All items of property, plant and equipment are initially recorded at cost. Subsequent

to recognition, property, plant and equipment are measured at cost less accumulated

depreciation and any accumulated impairment losses. The cost includes the cost of

replacing part of the property, plant and equipment. The cost of an item of property,

plant and equipment is recognised as an asset if, and only if, it is probable that future

economic benefits associated with the item will flow to the Association and the cost

of the item can be measured reliably.

Subsequent expenditure relating to property, plant and equipment that has already

been recognised is added to the carrying amount of the asset only when it is probable

that future economic benefits associated with the item will flow to the Association

and the cost of the item can be measured reliably. Other subsequent expenditure is

recognised as repair and maintenance expense in the income and expenditure

statement during the financial year in which it is incurred.

Depreciation is computed on the straight-line method to write off the cost of

property, plant and equipment over the estimated useful lives. The estimated useful

lives of property, plant and equipment are as follows:

Computer & equipment 1½ - 3 years

Furniture & fittings 5 years

Gym equipment 5 years

Electrical installations 5 years

Fully depreciated assets are retained in the accounts until they are no longer in use

and no further charge for depreciation is made in respect of these assets.

15


2.4 Property, plant and equipment (Cont’d)

The carrying values of property, plant and equipment are reviewed for impairment

when events or changes in circumstances indicate that the carrying value may not be

recoverable.

The residual value, useful life and depreciation method are reviewed at the end of

each reporting year to ensure that the amount, method and period of depreciation are

consistent with previous estimates and the expected pattern of consumption of the

future economic benefits embodied in the items of property, plant and equipment.

An item of property, plant and equipment is de-recognised upon disposal or when no

future economic benefits are expected from its use or disposal. Any gain or loss

arising on de-recognition of the asset is included in the income and expenditure

statement in the financial year the asset is de-recognised.

2.5 Impairment of non-financial assets

The Association assesses at each reporting date whether there is an indication that an

asset may be impaired. If any such indication exists, or when an annual impairment

assessment for an asset is required, the Association makes an estimate of the asset’s

recoverable amount.

An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s

fair value less costs of disposal and its value in use and is determined for an

individual asset, unless the asset does not generate cash inflows that are largely

independent of those from other assets or group of assets. Where the carrying amount

of an asset or cash-generating unit exceeds its recoverable amount, the asset is

considered impaired and is written down to its recoverable amount.

Impairment losses of continuing operations are recognised in the income and

expenditure statement except for assets that are previously revalued where the

revaluation was taken to revaluation reserve. In this case, the impairment is also

recognised in revaluation reserve up to the amount of any previous revaluation.

A previously recognised impairment loss is reversed only if there has been a change

in the estimates used to determine the asset’s recoverable amount since the last

impairment loss was recognised. If that is the case, the carrying amount of the asset is

increased to its recoverable amount. That increase cannot exceed the carrying amount

that would have been determined, net of depreciation, had no impairment loss been

recognised previously. Such reversal is recognised in the income and expenditure

statement unless the asset is measured at revalued amount, in which case the reversal

is treated as a revaluation increase.

2.6 Financial instruments

(a) Financial assets

Financial assets are recognised when, and only when, the Association

becomes a party to the contractual provisions of the financial instrument. The

Association determines the classification of its financial assets at initial

recognition.

16


2.6 Financial instruments (Cont’d)

(a) Financial assets (Cont’d)

Non-derivative financial assets with fixed or determinable payments that are

not quoted in an active market are classified as loans and receivables. Such

assets are initially recognised at fair value, plus directly attributable

transaction costs and subsequently carried at amortised cost using the

effective interest method, less impairment. Gains and losses are recognised in

the income and expenditure statement when the loans and receivables are de-

recognised or impaired, and through the amortisation process.

A financial asset is de-recognised when the contractual right to receive cash

flows from the asset has expired. On de-recognition of a financial asset in its

entirety, the difference between the carrying amount and the sum of the

consideration received and any cumulative gain or loss that had been

recognised directly in reserve is recognised in the income and expenditure

statement.

The Association classifies the following financial assets as loans and

receivables:

• Cash and short term deposit

• Other receivables

(b) Financial liabilities

Financial liabilities are recognised when, and only when, the Association

becomes a party to the contractual provisions of the financial instrument. The

Association determines the classification of its financial liabilities at initial

recognition.

All financial liabilities are recognised initially at fair value plus in the case of

financial liabilities not at fair value through profit or loss, directly

attributable transaction costs.

Subsequent to initial recognition, derivatives are measured at fair value.

Other financial liabilities (except for financial guarantee) are measured at

amortised cost using the effective interest method.

For financial liabilities other than derivatives, gains and losses are recognised

in the income and expenditure statement when the liabilities are de-

recognised, and through the amortisation process. Any gains or losses arising

from changes in fair value of derivatives are recognised in the income and

expenditure statement. Net gains or losses on derivatives include exchange

differences.

A financial liability is de-recognised when the obligation under the liability is

discharged, cancelled or expired. When an existing financial liability is

replaced by another from the same lender on substantially different terms, or

the terms of an existing liability are substantially modified, such an exchange

or modification is treated as a de-recognition of the original liability and the

recognition of a new liability, and the difference in the respective carrying

amounts is recognised in the income and expenditure statement.

17


2.6 Financial instruments (Cont’d)

(c) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is

presented in the statement of financial position, when and only when, there is

a currently enforceable legal right to set off the recognised amounts and there

is an intention to settle on a net basis, or to realise the assets and settle the

liabilities simultaneously.

2.7 Impairment of financial assets

The Association assesses at the end of each reporting year whether there is any

objective evidence that a financial asset or group of financial assets is impaired and

recognises an allowance for impairment when such evidence exists.

If there is objective evidence that an impairment loss on loans and receivables carried

at amortised cost has been incurred, the amount of the loss is measured as the

difference between the asset’s carrying amount and the present value of estimated

future cash flows discounted at the financial asset’s original effective interest rate. If

a loan has a variable interest rate, the discount rate for measuring any impairment

loss is the current effective interest rate. The carrying amount of the asset is reduced

through the use of an allowance account. The impairment loss is recognised in the

income and expenditure statement.

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 to the extent that

the carrying amount of the financial asset does not exceed its amortised cost at the

reversal date. The amount of reversal is recognised in the income and expenditure

statement.

2.8 Cash and cash equivalents

Cash and cash equivalents comprise cash and bank balances that are readily

convertible to known amount of cash and which are subject to an insignificant risk of

changes in value.

2.9 Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is generally

determined on a first-in, first-out basis and comprises all costs of conversion and

other costs incurred in bringing the inventories to their present location and

condition.

Where necessary, allowance is provided for damaged, obsolete and slow-moving

items to adjust the carrying value of inventories to the lower of cost and net realisable

value.

Net realisable value is the estimated selling price in the ordinary course of business,

less estimated costs of completion and the estimated costs necessary to make the sale.

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2.10 Provisions

Provisions are recognised when the Association has a present obligation (legal or

constructive) as a result of a past event, it is probable that an outflow of resources

embodying economic benefits will be required to settle the obligation and the amount

of the obligation can be estimated reliably.

Provisions are reviewed at the end of each reporting year and adjusted to reflect the

current best estimate. If it is no longer probable that an outflow of economic

resources will be required to settle the obligation, the provision is reversed. If the

effect of the time value of money is material, provisions are discounted using a

current pre-tax rate that reflects current market assessments of the time value of

money and the risks specific to the liability. When discounting is used, the increase in

the provision due to the passage of time is recognised as a finance cost.

2.11 Leases

Operating leases

As lessee

Leases where substantially all the risks and rewards incidental to ownership are

retained by the lessors are classified as operating leases. Operating lease payments

are recognised as an expense in the income and expenditure statement on a straight-

line basis over the lease term.

The aggregate benefit of incentives provided by the lessor is recognised as a

reduction of rental expense over the lease term on a straight-line basis.

2.12 Employee benefits

Defined contribution plan

As required by law, the Association makes contributions to the Central Provident

Fund (CPF) scheme in Singapore, a defined contribution pension scheme. CPF

contributions are recognised as compensation expenses in the same period as the

employment that gives rise to these contributions.

Employee leave entitlement

Employee entitlements to annual leave are recognised as a liability when they are

accrued to the employees. The undiscounted liability for annual leave expected to be

settled wholly before twelve months after the end of the reporting year is recognised

for services rendered by employees up to the end of the reporting year.

2.13 Recognition of income and expenditure

The financial statements are prepared on an accrual basis. Income and expenditure

are recognised as follows:

(i) Income

Membership fees are recognised when due and no significant uncertainty as

to collectability exists.

19


2.13 Recognition of income and expenditure (Cont’d)

(i) Income (Cont’d)

Income from events and financial support from Sport Singapore (“Sport

SG”) is recognised upon the completion of events or the incurring of

qualifying expenditure.

Interest income is recognised using the effective interest method.

Donations are recognised upon receipts.

(ii) Expenditure

Expenditure is recognised when the Association has a present obligation to

pay arising from past events (legal or constructive), the settlement of which

is expected to result in an outflow of resources embodying economic benefits

of the Association.

2.14 Government grants

Relating to assets

Government grants are recognised when there is reasonable assurance that the grant

will be received and all attaching conditions will be compiled with. Where the grant

relates to an asset, the fair value is presented in the statement of financial position by

deducting the grant in arriving at the carrying amount of the asset.

Relating to expenses

Government grants are recognised when there is reasonable assurance that the grant

will be received and all attaching conditions will be compiled with. Where the grant

relates to an expense item, the fair value is recognised as income in the profit or loss

over the periods necessary to match them on a systematic basis to the costs for which

the grants are intended to compensate.

2.15 Significant accounting judgements and estimates

The preparation of the Association’s financial statements requires management to

make judgements, estimates and assumptions that affect the reported amounts of

revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities

at the end of each reporting year. Uncertainty about these assumptions and estimates

could result in outcomes that require a material adjustment to the carrying amount of

the asset or liability affected in the future periods.

Key sources of estimation uncertainty

The key assumptions concerning the future and other key sources of estimation

uncertainty at the end of the reporting year are discussed below. The Association

based its assumptions and estimates on parameters available when the financial

statements were prepared. Existing circumstances and assumptions about future

developments, however, may change due to market changes or circumstances arising

beyond the control of the Association. Such changes are reflected in the assumptions

when they occur.

20


2.15 Significant accounting judgements and estimates (Cont’d)

Key sources of estimation uncertainty (Cont’d)

Useful lives of property, plant and equipment

The cost of property, plant and equipment is depreciated on a straight-line basis over

the property, plant and equipment estimated useful lives. Management estimates the

useful lives of these property, plant and equipment to be within 1½ to 5 years.

Changes in the expected level of usage and technological developments could impact

the economic useful lives of these assets, therefore, future depreciation charges could

be revised. The carrying amounts of the Association’s property, plant and equipment

at the end of the reporting year are disclosed in Note 3 to the financial statements.

Impairment of loans and receivables

The Association assesses at the end of each reporting year whether there is any

objective evidence that a financial asset is impaired. Factors such as the probability

of insolvency or significant financial difficulties of the debtor and default or

significant delay in payments are objective evidence of impairment, the Association

considers whether there is observable data indicating that there have been significant

changes in the debtor’s payment ability or whether there have been significant

changes with adverse effect in the technological, market, economic or legal

environment in which the debtor operates in.

Where there is objective evidence of impairment, the amount and timing of future

cash flows are estimated based on historical loss experience for assets with similar

credit risk characteristics. The carrying amounts of the Association’s loans and

receivables at the end of the reporting year are disclosed in Notes 4 and 5 to the

financial statements.

Net realisable value of inventories

A review is made periodically on inventory for excess inventory, obsolescence and

declines in net realisable value below cost and an allowance is recorded against the

inventory balance for any such declines. These reviews require management to

consider the future demand for the products. In any case, the realisable value

represents the best estimate of the recoverable amount and is based on the most

reliable evidence available at the end of each reporting date and inherently involves

estimates regarding the future expected realisable value. The usual considerations for

determining the amount of allowance or write down include aging analysis, technical

assessment and subsequent events. In general, such an evaluation process requires

significant judgement and materially affects the carrying amount of inventories at the

end of each reporting year. Possible changes in these estimates could result in

revisions to the stated value of inventories. The carrying amounts of the

Association’s inventories at the end of the reporting year are $Nil (2017 – $2,858).

21

3. PROPERTY, PLANT AND EQUIPMENT

Computer Donated

& Furniture Gym gym Electrical

equipment & fittings equipment equipment installations Total

2018 $ $ $ $ $ $

Cost:

At 1.4.2017 38,743 15,614 336,417 375,145 10,488 776,407

Additions 6,529 - 3,027 - - 9,556

Disposals ( 999) - - - - ( 999)

Written off ( 9,362) - - - - ( 9,362)

At 31.3.2018 34,911 15,614 339,444 375,145 10,488 775,602

Accumulated

depreciation:

At 1.4.2017 38,349 15,042 232,147 349,691 10,488 645,717

Depreciation

for the year 881 572 36,817 7,586 - 45,856

Disposals ( 999) - - - - ( 999)

Written off ( 9,362) - - - - ( 9,362)

At 31.3.2018 28,869 15,614 268,964 357,277 10,488 681,212

Net book value:

At 31.3.2018 $ 6,042 $ - $ 70,480 $ 17,868 $ - $ 94,390

Computer Donated

& Furniture Gym gym Electrical

equipment & fittings equipment equipment installations Total

2017 $ $ $ $ $ $

Cost:

At 1.4.2016 43,269 21,319 320,014 367,680 10,488 762,770

Additions 690 337 32,130 16,830 - 49,987

Disposals - - - ( 9,244) - ( 9,244)

Written off ( 5,216) ( 6,042) ( 15,727) ( 121) - ( 27,106)

At 31.3.2017 38,743 15,614 336,417 375,145 10,488 776,407

Accumulated

depreciation:

At 1.4.2016 37,965 18,313 199,035 331,544 10,420 597,277

Depreciation

for the year 5,593 2,738 48,835 27,512 68 84,746

Disposals - - - ( 9,244) - ( 9,244)

Written off ( 5,209) ( 6,009) ( 15,723) ( 121) - ( 27,062)

At 31.3.2017 38,349 15,042 232,147 349,691 10,488 645,717

Net book value:

At 31.3.2017 $ 394 $ 572 $ 104,270 $ 25,454 $ - $ 130,690

22

4. OTHER RECEIVABLES

2 0 1 8 2 0 1 7

$ $

Other receivables 130,549 96,587

Less: Allowance for impairment ( 14,712) ( 16,208)

115,837 80,379

Accrued income 43,330 $ -

Deposits 24,086 13,986

Cash advance - 676

$ 183,253 $ 95,041

Movements in the allowance for impairment are as follows:

2 0 1 8 2 0 1 7

$ $

Amount at beginning of year 16,208 $ -

Allowance for impairment 14,712 16,208

Allowance written back ( 5,183) $ -

Written off against allowance ( 11,025) $ -

Amount at end of year $ 14,712 $ 16,208

Bad debts written off directly to income

& expenditure statement $ 420 $ -

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the statement of cash flows comprise the following

amounts:

2 0 1 8 2 0 1 7

$ $

Fixed deposit (restricted)

Placement more than 3 months 50,000 55,816

Cash and bank balances 461,158 454,804

511,158 510,620

Less: Fixed deposit

Placement more than 3 months ( 50,000) ( 55,816)

$ 461,158 $ 454,804

The fixed deposit placed with a financial institution matures within 12 months (2017 – 8

months) from the end of the reporting year and bears interest at 1.20% (2017 – 1.15%) per

annum.

The fixed deposit is earmarked as a restricted reserve fund and funds from this reserve may

only be released by a resolution passed at a General Meeting of its members.

23

6. DEFERRED EXPENDITURE, NET

2 0 1 8 2 0 1 7

$ $

Deferred expenditure 41,988 $ -

Deferred income ( 4,171) $ -

Deferred expenditure, net $ 37,817 $ -

7. RESERVE FUND

2 0 1 8 2 0 1 7

$ $

Accumulated fund at beginning of year 582,458 431,820

Net surplus (deficit) for the year

after income tax ( 105,951) 150,638

Utilisation of unrestricted fund ( 20,281) $ -

Accumulated fund at end of year $ 456,226 $ 582,458

Reserve fund is represented by the following:

2 0 1 8 2 0 1 7

$ $

Unrestricted fund 406,226 526,642

Restricted fund 50,000 55,816

$ 456,226 $ 582,458

The Association’s reserve policy requires them to set aside 30% of the annual surplus to a

specific reserve by way of a term deposit (Note 5) to accumulate funds for structural costs. In

a deficit situation, there will not be additional amounts set aside to the restricted reserve.

During the year, the Management Committee approved the utilisation of $20,281 from the

unrestricted funds for the expenditure of the Women’s Artistic Gymnastics (WAG) and

Rhythmic Gymnastics (RG) amounting to $10,041 and $10,240 respectively.

8. ACCRUALS AND OTHER PAYABLES

2 0 1 8 2 0 1 7 $ $ Accruals 278,304 89,661 Other payables 28,641 21,298 Athlete deposits received 17,065 26,185 Membership fees received in advance 21,118 $ - Unutilised funds payable to SportSG 35,883 28,625

$ 381,011 $ 165,769

9. INCOME TAX EXPENSE

The Association is an approved Charitable Institution under the Charities Act, Chapter 37 and

an Institute of Public Character under the Income Tax Act, Chapter 134. Accordingly, the

Association is exempted from income tax.

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10. OPERATING LEASE COMMITMENTS

At the end of the reporting year, the Association was committed to making the following

payments in respect of non-cancellable operating leases:

2 0 1 8 2 0 1 7 $ $ Leases which expire: Within one year 345 1,656 Later than one year but within five years - 345

$ 345 $ 2,001

11. RELATED PARTY TRANSACTIONS

An entity or individual is considered a related party for the purpose of these financial

statements if it has the ability (directly or indirectly) to control or exercise significant

influence over the operating and financial decisions of the Association or vice versa, or where

it is subject to common control or common significant influence.

Transactions with related parties

Significant transactions on terms agreed by the parties between the Association and

companies/entities/individuals in which certain committee members of the Association have

interests (related parties):

2 0 1 8 2 0 1 7

$ $

Training and competition related fees and

other income ( 45,603) ( 28,684)

Facilities 300 -

Training and competition related expenses 17,367 35,517

Other expenses 1,914 7,705

Sale of property, plant and equipment - ( 3,000)

Purchase of property, plant and equipment - 13,676

Annual awards dinner donations received ( 7,043) -

Golf charity donations received - ( 6,293)

Meeting expenses - 606

12. CATEGORIES OF FINANCIAL INSTRUMENTS

The categories of financial instruments as at the end of the reporting year are as follows:

2 0 1 8 2 0 1 7

Financial assets

Loans and receivables (including

cash and short-term deposit) $ 694,411 $ 605,661

Financial liabilities

Financial liabilities at amortised cost $ 381,011 $ 165,769

25

13. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Association is exposed to financial risks arising from its operations and the use of

financial instruments. The Association’s financial instruments comprise financial assets and

liabilities. Financial assets and liabilities mainly relate to receivables and payables which

arise directly from its operations.

The main purpose for holding or issuing financial instruments is to raise and manage the

finances for the Association’s operating, investing and financing activities. There is exposure

to the financial risks on the financial instruments such as credit risk, liquidity risk and market

risk comprising interest rate risk, foreign currency risk and other price risk exposures. The

Management Committee has certain practices for the management of financial risks.

However, these are not documented in formal written documents. The following guidelines

are followed: All financial risk management activities are carried out and monitored by the

Management Committee. All financial risk management activities are carried out following

good market practices.

The Association does not hold or issue derivative financial instruments for trading purposes

or to hedge against fluctuations in interest and foreign exchange rates.

The following sections provide details regarding the Association’s exposure to the above-

mentioned financial risks and the objectives, policies and processes for the management of

these risks. There has been no change to the Association’s exposure to these financial risks or

the manner in which it manages and measures the risks.

Credit risk

Credit risk is the risk of loss that may arise on outstanding financial instruments should a

counterparty default on its obligations. The Association’s exposure to credit risk arises

primarily from other receivables. For other financial assets (including cash and short-term

deposit), the Association minimises credit risk by dealing exclusively with high credit rating

counterparties.

The Association has no significant concentration of credit risk. The Association has policies

in place to ensure that transactions are entered into only with counterparties that are of

acceptable credit quality. In addition, receivable balances are monitored on an ongoing basis

with the result that the Association’s exposure to bad debts is not significant.

The maximum exposure to credit risk is represented by the net carrying amount of financial

assets recorded in the financial statements.

Other receivables that are neither past due nor impaired are with creditworthy debtors with

good payment record with the Association. Cash and fixed deposit that are neither past due

nor impaired are placed with or entered into with reputable financial institutions or companies

with high credit ratings and no history of default.

Liquidity risk

Liquidity risk is the risk that the Association will encounter difficulty in meeting financial

obligations due to shortage of funds. The Association’s exposure to liquidity risk arises

primarily from mismatches of the maturities of financial assets and liabilities.

The Association ensures that there are adequate funds and availability of funding through

subsidies and fund-raising activities to meet all its operational requirements.

As at the end of the reporting year, the expected contractual undiscounted cash outflows of

financial liabilities are due in less than a year.

26

13. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (Cont’d)

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of the Association’s

financial instruments will fluctuate because of changes in market interest rates. The

Association has no exposure to interest rate risk as interest arising primarily from fixed

deposit is fixed and does not fluctuate with changes in market interest rates.

Foreign currency risk

The Association does not engage in trading of or speculation in foreign currencies as the

Association’s exposure to foreign currency risk is minimal.

The Association operational activities are carried out in Singapore dollars which is its

functional currency. All transactions are paid mainly in local currency.

Equity price risk

The Association has no exposure to equity price risk.

Reserves management

Utilisation of reserves is determined by the Management Committee. There were no changes

in the Association’s approach to reserves management during the period. The Association is

not subject to externally imposed capital reserves requirements.

14. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value of a financial instrument is the amount at which the instrument could be

exchanged or settled between knowledgeable and willing parties in an arm’s length

transaction, other than in a forced or liquidation sale.

Financial instruments whose carrying amounts approximate fair values

The Management Committee has determined that the carrying amounts of the Association’s

fixed deposit, cash and bank balances, other receivables, and other payables, based on their

notional amounts, reasonably approximate their fair values because these are mostly short

term in nature.

15. AUTHORISATION OF FINANCIAL STATEMENTS

The financial statements for the year ended 31 March 2018 were authorised for issue by the

Management Committee on 10 September 2018.

financial statements for the financial year ended 31 … filereg. no. ros 0207/2003 spo uen:...

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