Annual Report 2009 - Asian Productivity Organization

US dollars at the appropriate rate of exchange on the balance sheet date. For revenue and expense
accounts, average rates for the month of the transactions are applied. Revenue and expense
accounts of other currencies except Japanese yen are translated into US dollars at rates that approximate
those rates prevailing at the time of the transactions. The resulting unrealized gain/loss
from translation is included in exchange gain/loss in the statement of revenues and expenses.
(11) Taxes
The Organization is exempt from direct taxes on assets or income and from customs duties.
(12) Use of estimates
The Organization makes estimates and assumptions to prepare the financial statements. Such
estimates and assumptions affect the reported amounts of assets, liabilities, revenues, and expenses.
Actual results could differ from those estimates.
3. Cash and cash equivalents
Cash and cash equivalents include all highly liquid investments, generally with original maturities of
three months or less, which are readily convertible to known amounts of cash and are so near maturity
that they present insignificant risk of changes in value because of changes in interest rates. Money
market funds, which are treated as cash and cash equivalents except for specific use in the funds for
severance payments, are carried at cost plus accrued interest, which approximates market value.
4. Receivables of membership contributions,
participating country expenses, and others
The allowance for receivables of membership contributions overdue for one year and longer amounts to
$540,993 and it includes the allowance for a long-outstanding receivable for the membership contribution
from Hong Kong since 31 December 1999, amounting to $248,125, because there has been no
communication with Hong Kong after the transfer of sovereignty. The Organization has also recorded
allowance for the outstanding debt for receivables of participating country expenses and others from
member countries as of 31 December 2009, amounting to $4,837 and $10,125, respectively.
Allowances for outstanding debts as of 31 December 2009 and 2008 were as follows:
Receivables overdue for
1 year and longer
Membership
contributions
Participating country
expenses
2009 2008
Provided by Allowance Provided by Allowance
percent of
percent of
100 $540,993 100 $675,876
100 4,837 100 5,240
Others 100 10,125 100 13,088
$555,955 $694,204
FINANCIAL REPORT
APO ANNUAL REPORT 2009 111