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					cost model version 3          08/04/2011




             “Cost Model” Financial Statements




                       AAA CREDIT UNION LIMITED

              PROFORMA REPORT AND FINANCIAL STATEMENTS

                         FOR THE YEAR ENDED
                          30TH SEPTEMBER 2007




       REGISTERED NUMBER: XXXX
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007




TABLE OF CONTENTS
                                                            PAGE

CHAIRPERSONS REPORT                                         x

DIRECTORS REPORT                                            x

OTHER REPORTS                                               x

STATEMENT OF DIRECTORS' RESPONSIBILITIES                    x

STATEMENT OF SUPERVISORY COMMITTEE'S RESPONSIBILITIES       x

REPORT OF THE AUDITOR                                       x

INCOME AND EXPENDITURE ACCOUNT                              x

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES              x

BALANCE SHEET                                               x

ACCOUNTING POLICIES                                         x

NOTES TO THE FINANCIAL STATEMENTS                           x

SCHEDULE 1 - OTHER INTEREST RECEIVABLE AND SIMILAR INCOME   x

SCHEDULE 2 - OTHER INCOME                                   x

SCHEDULE 3 - OTHER MANAGEMENT EXPENSES                      x




2
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007




    CHAIRPERSONS REPORT1

    Where the credit union decide to include a Chairperson Report it should include a
    fair review of the years trading and a review of the credit unions achievement of its
    social objectives. Credit Union chairpersons may wish to comment on how the
    credit union is improving the economic and social well being of all members and
    bringing about human and social development in the community.

    The Chairperson may also wish to comment on amounts spent on community and
    social projects, such as education and training of credit union staff, social projects,
    sponsorship of local events or long standing members dinners etc…




1
    This is an optional report.


3
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007



    DIRECTORS REPORT

    REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS
    This should include comment on the level of business for the year and a look
    forward to the expected level of activity next year. Comment should also be made
    as to the soundness of the credit unions finances and its ability to trade into the
    future.

    AUTHORISATION
    It is best practice to list any additional authorisation held by the credit union such
    as authorised to conduct investment business (arrange life insurance and pension
    policies for members), undertake foreign exchange transactions or arrange
    mortgage products for members.

    THE CREDIT UNIONS OBJECTIVES, POLICES AND STRATEGIES2
    The purpose of our credit unions is to allow members save together and lend to
    each other at a fair and reasonable rate of interest. At the year end the credit union
    had x% (2006: x%) of all deposits and savings loaned to members.

                                                                                  €                %
    Members savings and deposits at the year end                                 XXX
    Loaned to members                                                            XXX            X%
    Invested in various investment                                               XXX            X%
    3
     The principal risks and challenges facing the credit union are loan default; not
    lending a sufficient proportion of funds so that too much of the credit unions
    resources are tied up in investment products; poor performance of investments;
    the risk that we will not have sufficient cash resources to meet day to day running
    costs and repay members savings when demanded (liquidity risk). These risks are
    managed by the credit union board as follows:

    Loan default
    (text of how the credit union collects unpaid debts, the policy in respect of
    rescheduling)

    Not lending enough of the surplus funds
    (How the credit union encourages lending, comparison of interest rates etc… policy
    in respect of non prime sector)

    Poor performance of investment products

2
 The commentary in this section will be different for different credit unions and should be considered
carefully by the directors. Included here is just one example wording.
3
    The five paragraphs from this point onwards are best practice only.


4
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

(Overall policy adopted and investment strategy. Where advice is sought, whether
this advice is independent, ongoing review procedures)

Liquidity risk
(How the credit union manages this)



DIRECTORS, TREASURER AND SUPERVISORY COMMITTEE
The directors, treasurer and supervisory committee of the credit union at 30
September 2006 and during the year are listed below:

Directors
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX (deceased)
XXXXXXXXXXXXX (appointed XX/XX/XX)

Supervisory Committee
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX

XXXXXXXXXXXXX retires from the board and does not offer himself for re-election.

In accordance with Section 53 of the Credit Union Act 1997, the following directors
retire from the board and, being eligible, offer themselves for re-election.
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX

In accordance with Section 58 of the Credit Union Act 1997, the following members
of the supervisory committee retire and, being eligible, offer themselves for re-
election.
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX




5
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

AUDITORS
In accordance with Section 115 of the Credit Union Act 1997, the auditors XXXX &
Co. offer themselves for re-election.


On Behalf of the Board


_________________________________          Director


_________________________________          Director


_____________________         Date




6
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

SUPERVISORY COMMITTEE REPORT

This report should disclose what checks were performed by the supervisory
committee, how often they were performed, how effective they were. The
examples below should be tailored to each specific credit unions circumstances.

We the supervisory Committee are charged with the responsibility to review the
credit union’s operations, evaluate the performance of elected officials and
employees and make recommendations where improvement is necessary on
behalf of the members.

We do this by ensuring the directors control and manage the credit union within
the requirements of the credit union Act, 1997, the rules of the Irish League of
Credit Union’s / Credit Union Development Association and within the
requirements of the Financial Regulator.

Discuss the number of board meetings held in the year under review and the
outcome of the committees review of the policies set out by the board and how
they tested the implementation; adequacy and adherence to the boards stated
policy in the operation of the credit union. Discuss the number of meetings held
with the board to review, with them, the performance of their function.

Discussion of the work that the committee carried out the documents examined,
and the details of the committees review of the internal control procedures
operated by the directors. And the outcome of their review.

Also detail the share and loan circularisation’s undertaken and the outcome of the
circularisation’s.

We extend our thanks to the Board of Directors, Manager and staff for their
courtesy, assistance and co-operation during the year.

______________________         ____________________________
Chairperson                    Secretary

_____________________          Date




7
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

    REPORT OF THE CREDIT COMMITTEE4
    There were XXXX loans approved during he year amounting to €XXXX. Home
    improvements and holidays amounted to XX loans and motor car loans amounted
    to XXX.

    XX of the loans were approved by the credit committee and XX were referred to the
    Board of Directors of which XX were approved by the Board. The remainder of the
    loans were approved by the loan officer and were for amounts less than the
    members share balance.

    It may be appropriate to also include details of how loans are approved and the
    length of loans, amounts rescheduled etc…

    ______________________             ____________________________
    Chairperson                        Secretary

    _____________________              Date

    REPORT OF THE CREDIT CONTROL COMMITTEE
    The vast majority of members who borrow are excellent at repaying their loan.
    However, for a variety of reasons some members may find themselves in a position
    where they can not continue to make repayments. For members in such a situation
    it is important to contact he Credit Union as early as possible and every effort will
    be made to accommodate the members circumstances.

    Loan write offs this year totalled €XXX compared to €XXX last year. The
    committee are pleased to report that bad debts recovered amounted to €XX.
    Many of the members in default have genuine reasons for non payment. However,
    a very small number have no valid reason and it is the intention of the board to
    pursue these members diligently and if necessary legally.

    Included here would be a discussion of the work done by the committee in trying
    to collect overdue debts such as sending letters, telephoning and calling to
    members who may have difficulties making their repayments and commenting
    that in most cases suitable arrangements can be made to reduce or reschedule the
    loan.

    Because the overall loan balance has increased, the Credit Union has decided to
    raise the bad debt provision from €XXXX to €XXXX

    Finally, our thanks to those members who have loans outstanding and continue to
    repay them on time.

    ______________________             ____________________________
4
 The report of the credit committee and credit control committee will vary from credit union to credit
union and the example below should be tailored to the credit unions circumstances


8
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

    Chairperson                        Secretary

    _____________________              Date


    REPORT OF THE MEMBERSHIP COMMITTEE5

    Number of members at the beginning of the year                  XX
    New members admitted during the year                            XX
    Member who died                                                (XX)
    Accounts ceased                                                (XX)
    Number of members at the end of the year XX

    We are pleased to note the strong growth in membership numbers and hope that
    this trend will continue.

    Applications for membership must be accompanied by photo identification such as
    a driving licence, passport or work identification card and a current utility bill such
    as an electricity bill, tax free allowance certificate or bank statement.


    ______________________             ____________________________
    Chairperson                        Secretary

    _____________________              Date




5
  This report will vary from credit union to credit union and the example below should be tailored to
the credit unions circumstances.


9
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007



    STATEMENT OF DIRECTORS' RESPONSIBILITIES6

    The Credit Union Act, 1997 requires the directors to prepare financial statements
    for each financial year which give a true and fair view of the state of affairs of the
    Credit Union and of the income and expenditure of the Credit Union for that
    period. In preparing those financial statements, the directors are required to:-

    (i)     select suitable accounting policies and then apply them consistently;

    (ii)    make judgements and estimates that are reasonable and prudent;

    (iii)   prepare the financial statements on a going concern basis unless it is
            inappropriate to presume that the credit union will continue in business.

    The Directors are responsible for keeping proper accounting records which disclose
    with reasonable accuracy at anytime the financial position of the Credit Union and
    which enables them to ensure that the financial statements comply with the Credit
    Union Act, 1997. They are also responsible for safeguarding the assets of the Credit
    Union and hence for taking reasonable steps for the prevention and detection of
    fraud and other irregularities.

    ______________________                 ____________________________
    Chairperson                            Secretary


    STATEMENT OF SUPERVISORY COMMITTEE'S RESPONSIBILITIES

    The Credit Union Act, 1997 requires the appointment of a Supervisory Committee
    which will oversee Directors in the performance of their functions, examine books
    and documents of the Credit Union and verify a sample of members' balances.

    ______________________                 ____________________________
    Chairperson                            Secretary




6
    This could be included at the end of the directors report instead of here.


10
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

INDEPENDENT AUDITORS REPORT
We have audited the financial statements of AAA Credit Union Limited for the year
ended 30 September 2007 which comprise the Income and Expenditure Account,
the Balance Sheet, the Statement of Total Recognised Gains and Losses, the Cash
Flow Statement and the related notes. These financial statements have been
prepared under the accounting policies set out therein and the accounting
standards issued by the Accounting Standards Board.

This report is made solely to the credit unions' members, as a body, in accordance
with Section 120 of the Credit Union Act, 1997. Our audit work has been
undertaken so that we might state to the credit union's members those matters we
are required to state to them in an auditor's report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the credit union and the credit union's members as a body, for
our audit work, for report, or for the opinions we have formed.

Respective responsibilities of directors and auditors
As described in the Statement of Directors' Responsibilities the credit union
directors' are responsible for the preparation of the financial statements in
accordance with applicable law and Generally Accepted Accounting Practice in
Ireland.

Our responsibility is to audit the financial statements in accordance with relevant
legal and regulatory requirements and International Standards on Auditing (UK and
Ireland) issued by the Auditing Practices Board in Ireland and the United Kingdom.

We report to you our opinion as to whether the financial statements give a true and
fair view in accordance with Generally Accepted Accounting Practice in Ireland, and
are properly prepared in accordance with the Credit Union Act, 1997. We also
report to you whether in our opinion, proper accounting records have been kept by
the credit union and whether the information given in the Directors' Report is
consistent with the financial statements. In addition, we state whether we have
obtained all the information and explanations necessary for the purposes of our
audit and whether the credit union's balance sheet and its income and expenditure
account are in agreement with the books of account.

We read the other information contained in the Annual Report and consider
whether it is consistent with the audited financial statements. This other
information comprises the Director's Report and the reports of the various other
regulatory committees of the credit union. We consider the implications for our
report if we become aware of any apparent misstatements or material
inconsistencies with the financial statements. Our responsibilities do not extend to
any other information.

Basis of opinion




11
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

    We conducted our audit in accordance with International Standards on Auditing
    (UK and Ireland) issued by the Auditing Practices Board. An audit includes
    examination, on a test basis, of evidence relevant to the amounts and disclosures in
    the financial statements. It also includes an assessment of the significant estimates
    and judgements made by the directors in the preparation of the financial
    statements, and of whether the accounting policies are appropriate to the Credit
    Union's circumstances, consistently applied and adequately disclosed.

    We planned and performed our audit so as to obtain all the information and
    explanations which we considered necessary in order to provide us with sufficient
    evidence to give reasonable assurance that the financial statements are free from
    material misstatement, whether caused by fraud or other irregularity or error. In
    forming our opinion we also evaluated the overall adequacy of the presentation of
    information in the financial statements.

    Opinion
    In our opinion the financial statements give a true and fair view in accordance with
    Generally Accepted Accounting Practice in Ireland of the state of the Credit Union's
    affairs as at 30 September 2007 and of it's income and expenditure for the year
    then ended and have been properly prepared in accordance with the provisions of
    the Credit Union Act, 1997.

    We have obtained all the information and explanations we consider necessary for
    the purposes of our audit. In our opinion, proper books of account have been kept
    by the Credit Union. The financial statements are in agreement with the books of
    account.
    7
     We have availed of provisions available for Small Entities by engaging in the
    provision of non-audit services to the Credit Union. We have applied appropriate
    safeguards to reduce any self-review threat an acceptable level as required by APB
    Ethical Standard 5.

    In our opinion, the information given in the Directors' Report on page X is
    consistent with the financial statements.

            XYZ & Co.
            Chartered & Certified Accountants & Registered Auditors,
            Dame Street, Dublin.

            Date:            _________________




7
    This is only required where the credit union engaged the auditors to perform any non audit services.


12
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007


INCOME AND EXPENDATURE ACCOUNT

                                                          2007           2006
                                                          €              €
INCOME                                         Schedule
Interest on Members' Loans                                XXX            XXX
Interest Payable and Similar Charges                      XXX            XXX
Other Interest Receivable and Similar Income   1          XXX            XXX

Net Interest Income                                       XXX            XXX
Other Income                                   2          XXX            XXX
TOTAL INCOME                                              XXX            XXX

EXPENDITURE
Salaries and other wage costs                             XXX            XXX
Other Management Expenses                      3          XXX            XXX
Depreciation                                              XXX            XXX
Bad and Doubtful Debts (note 2)                           XXX            XXX

TOTAL EXPENDITURE                                         XXX            XXX

EXCESS OF INCOME OVER EXPENDITURE
FOR THE YEAR (Note 7)                                     XXX            XXX


On behalf of the Credit Union
Treasurer:                                                       Date:
_________________
Member of Supervisory Committee:                                 Date:
_________________
Member of the Board of Directors:                                Date:
_________________




13
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007


    STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
    YEAR ENDED 31 SEPTEMBER 20078
                                        2007   2006
                                        €           €
    Surplus for the year financial year       XXXX                                             XXXX
    Revaluation of buildings9                  XXX                                              XXX
    Total gains / losses relating to the year  XXXX                                            XXXX


    NOTE OF HISTORICAL COST GAINS AND LOSSES10
    Profits measured on an historical cost basis are XXX.
    (the realised profits for the year plus any depreciation of the re-valued portion of
    buildings)




8
  This statement is not required in most credit unions and can be substituted by “There were no
recognised gains or losses other then the income and expenditure for the above two financial periods”
9
  Revaluation of buildings is allowed but not required under Generally Accepted Accounting Practice
in Ireland. Most credit unions do not revalue their property
10
     Not required where the credit union does not re-value assets



14
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

BALANCE SHEET

                                                 2007                   2006
ASSETS                                             €                     €
                                Notes

Cash and Balances at Bank                        XXX                    XXX
Deposits and Investments                     1   XXX                    XXX
Loans to Members                                 XXX                    XXX
Less: Provision for Bad and Doubtful Debts   2   XXX                    XXX

Tangible Fixed Assets                        3   XXX                    XXX
Prepayments and Accrued Income                   XXX                    XXX


TOTAL ASSETS                                     XXX                    XXX

LIABILITIES
Members' Deposits                            4   XXX                    XXX
Members' Shares                              5   XXX                    XXX
Other Liabilities and Charges                6   XXX                    XXX
Borrowings                                       XXX                    XXX

                                                  XXX                   XXX




MEMBERS' RESOURCES

Statutory Reserves                               XXX                    XXX
Other Reserves                               7   XXX                    XXX
Retained earnings
   Realised reserves                         7   XXX                    XXX
   Non-realised reserves                     7   XXX                    XXX
                                                 XXX                    XXX




On behalf of the Credit Union
Treasurer:
                                                       Date: _______________
Member of Supervisory Committee:
                                                       Date: _______________
Member of the Board of Directors:
                                                       Date: _______________


15
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007




CASH FLOW STATEMENT
RECONCILIATION OF EXCESS OF INCOME OVER EXPENDITURE TO NET
OPERATING CASH FLOWS11
                                          2007  2006
Excess of income over expenditure         XXX   XXX
Provision for bad and doubtful debts      XXX   XXX
Loans written off                         XXX   XXX
Depreciation                              XXX   XXX
Provisions for liabilities and charges    XXX   XXX
Other non-cash movements                  XXX   XXX
Net cash flow from trading activities     XXX   XXX

New loans to members                                        XXX            XXX
Repayment of members loans                                  XXX            XXX
                                                                     XXX   XXX
New deposits and shares by members                          XXX            XXX
Repayment of deposits and shares                            XXX            XXX
                                                                     XXX   XXX
New investments made                                        XXX
Investment redeemed or derecognised                         XXX
                                                                     XXX   XXX
Net increase in other assets                                         XXX   XXX
Net increase in other liabilities                                    XXX   XXX

Net cash inflow from operating activities                            XXX   XXX

CASH FLOW STATEMENT
Net cash inflow from operating activities                            XXX   XXX
Dividend and interest rebate paid to members                         XXX   XXX
Taxation paid                                                        XXX   XXX
Capital expenditure                                                  XXX   XXX

Increase / decrease in cash for the year                             XXX   XXX
Opening cash                                                         XXX   XXX
Closing cash                                                         XXX   XXX




11
     This is the “banking” example cash flow statement from FRS 1.


16
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007



 ACCOUNTING POLICIES

 The significant Accounting policies adopted by the credit union are as follows:

 Historical Cost Convention
 The financial statements are prepared under the historical cost convention, (except
 for the revaluation of buildings.)

 Revenue Recognition
 Revenue is recognised to the extent that it is probable that the economic benefits
 will flow to the Credit Union and the revenue can be reliably measured. Revenue is
 measured at the fair value of the consideration received. The following criteria
 must also be met before revenue is recognised:

 Interest on Members’ Loans
 Interest on Members' Loans is recognised when payment is received as specified in
 Section 110[1] [C] [i] of the Credit Union Act, 1997 (i.e. on a cash basis). -
 Loans are carried at amortised cost using the effective interest method.

 Investment Income12
 Investment income is recognised when received or irrevocably receivable.
 Investments are recognised at cost less any permanent diminution in capital value
 but ignoring any increase in capital value or encashment value until realised in the
 form of cash or cash equivalents.

 The specific investment products held by the credit union are accounted for as
 follows

 Bank deposits and other short term deposits
 These are valued at the deposit amount plus any accrued interest and interest
 income is recognised in the income statement on a accruals (time) bases.

 Term deposits and fixed interest investment bonds
 Term deposits and fixed interest investment bonds with fixed maturity dates are
 valued at the lower of cost or encashment value and interest income is recognised
 in the income statement when it is received or irrevocably receivable.

 Perpetual bonds
 Perpetual bonds are valued at the lower of cost or market value and interest
 income is recognised in the income statement when it is received or receivable.
 Decreases in the capital value of the bond are included in the income statement.

12
   Note: a credit union has the option of using a “cost model” or a “fair value model”. They must use one or the other and may
not mix and match, e.g. use one model for one produce and another model for different product. This example set of financial
statements uses the cost model throughout



17
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

Increases which reverse a previous decrease in the value of the bond are included in
the income statement all other increases in excess of the cost of the bond are
ignored until the bond is sold.

Unit funds and equity investments
Unit funds, property funds and other stock market investments are valued at the
lower of cost or market value and dividend or other income is recognised in the
income statement when it is received or irrevocable receivable. Increases in capital
value are not recognised until the asset is sold or matures. Decreases in market
value are recognised immediately.

Investments with return of capital guarantee
Investments with return of capital guarantee are valued at the lower of cost or
market value but not lower than the capital guaranteed amount and dividend or
other income is recognised in the income statement when it is received or
irrevocable receivable.

With profit bonds
With profit bonds with capital guaranteed are valued at cost. Declared bonuses
are recognised in the income statement when irrevocably receivable or earlier if the
bond becomes realisable in the form of cash or cash equivalents in a secondary
market. Terminal bonuses are recognised in the income statement when the credit
union become irrevocable entitled to receive them.

Bonds with guaranteed capital and variable interest rates
Interest income is recognised as received. Some bonds pay high rates of interested
in early years and lower rates in later years. Paying higher amounts in early years
reduces (impairs) the capital value of the bond. The capital value of the bond is
tested annually for impairment and impairment losses are taken to the income
statement. Impairment gains which reverse a previous impairment loss are taken
to the income statement with any gains in excess of the cost of the product ignored
until the bond matures.

Commodity and other bonds
Income is recognised once it is “locked in” and irrevocably receivable. The capital
value of the bond is tested annually for impairment and impairment losses are
taken to the income statement. Impairment gains which reverse a previous
impairment loss are taken to the income statement with any gains in excess of the
cost of the product ignored until the bond matures.

Property Plant and Equipment
Depreciation is calculated to write off the original cost of the Fixed Assets, less
their expected residual value, over their estimated useful lives at the following
annual rate:

Computer                        33% straight line


18
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

 Fixtures and Fittings           20% straight line
 Premises                        2% straight line
 A portion of the value of the premises is site cost. This portion amounts to €X and
 is not depreciated.

 The carrying value of tangible fixed assets are reviewed for impairment if events or
 changes in circumstances indicate the carrying value may not be recoverable.

 Pension Costs13
 Contributions to the Irish Life and Pensions scheme are charged to the Income and
 Expenditure Account in the period to which they relate.

 Pension Costs14
 The Credit Union participates in the Irish league of Credit Unions Republic of
 Ireland Pension Scheme (the pension scheme). This is a funded, multi credit union,
 defined benefit pension scheme. Because the Credit Union is unable to identify its
 share of the assets and liabilities of the pension scheme, the Credit Union, in
 accordance with the requirements of Financial Reporting standard 17, Retirement
 Benefits, and guidance from the League; is accounting for the pension
 contributions as if the scheme was a defined contribution scheme. Contributions
 payable to the pension scheme are recognised in the income and expenditure
 account. At the year end contributions owing to the pension fund were €XX (2006:
 €XX).

 The overall pension scheme assets and liabilities were valued by a an independent,
 professionally qualified actuary as at 1 March 2005 using the Projected Unit Credit
 method. The actuary calculated that the pension scheme had an overall past
 services actuarial deficit at that date of €13.633m but was unable to identify how
 much of this deficit was attributable to any particular credit union. The actuaries to
 the scheme have recommended a long term funding requirement of 20.3% of
 salaries to eliminate the deficit, which is a 3.6% increase in the current funding rate.
 The adequacy of the funding for the pension scheme will be monitored on an
 annual basis and may need to increase in the future.

 Bad Debts
 Provision for doubtful debts is made against current loan balances which the
 directors consider are uncollectible. The amount provided is calculated based on
 the number of weeks a loan is in arrears adjusted for any specific bad debts. (using
 a formula set out by the Irish League of Credit Unions, called Resolution 49 which

13
 This note is appropriate for pension schemes where there is no guarantee of the amount of pension
on retirement – a defined contribution or money purchase scheme.
14
  This note is appropriate for the ILCU defined benefit scheme members. Where the credit union has
a stand alone defined benefit pension scheme, i.e. the credit union has guaranteed a % of final salary
as a pension or guaranteed a fixed amount of pension to a staff member, there will be a need for
extensive notes as required by FRS 17.


19
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

is based on the number of weeks a loan is in arrears and then adjusting for any
specific bad debts.)
NOTES TO THE FINANCIAL STATEMNTS

1 DEPOSITS AND INVESTMENTS
The credit union has the following investments
Cash and short term deposits                XXX
Fixed term deposits                         XXX
Perpetual bonds                             XXX
Listed Equity Shares                        XXX
Government bonds                            XXX
Investment bonds                            XXX
Total                                       XXX


2. LOAN ARREARS AND doubtful debts
                                                 2007                    2006
Opening provision for bad debts                XXXX                    XXXX
Bad debts incurred during the year               XXXX                    XXXX
Bad debts recovered during the year       XXXX                  XXXX
Increase / decrease in bad debt provision        XXXX                    XXXX
Closing provision for bad debts                XXXX                    XXXX


The current provision in the financial statements is €XXX (2006 €XXX) representing
X% (2006: x%) of the total loan book. This amount exceeds the Resolution 49
requirement by €XXX. Loans rescheduled or refinanced during the year amounted
to X.


3. TANGIBLE FIXED ASSETS

                      Building      Office                Other          Total
                                    equipment
Cost:
At 1 October 2006     XXX           XXX                   XXX            XXX
Additions                           XXX                                  XXX
Disposals                                                 XXX            XXX
At 31 March 2007      XXX           XXX                   XXX            XXX


Depreciation:
At 1 October 2006     XXX           XXX                   XXX            XXX
Charge for the year   XXX           XXX                   XXX            XXX
Disposals                                                 XXX            XXX
At 31 March 2007      XXX           XXX                   XXX            XXX


20
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007




Net book value at
At 30 September 2007XXX                    XXX                       XXX               XXX

Net book value at
At 30 September 2006 XXX                   XXX                       XXX               XXX
15
 The Credit Union building was re-valued by Jason Wrong, Chartered Surveyor, on
an open market value basis reflecting existing use on (date).

The original cost of the building was                                XXXX
Depreciation thereon on a historical cost basis                               XXXX
Value of building under historical cost                                       XXXX


4. RATES OF INTEREST PAID ON MEMBERS' DEPOSIT AND SSIA ACCOUNTS
A rate of interest of 1% is paid on members' deposits and SSIA accounts.

      5. MEMBERS SHARES
                                                            2007                      2006
Regular share accounts                                      XXXX                      XXXX
Special share accounts                                      XXXX                      XXXX
Term share accounts                                       XXXX                      XXXX
                                                            XXXX                      XXXX
16
     Term Share accounts have the following maturity
                                                             2007                      2006
Less than 1 year                                             XXXX                      XXXX
One to two years                                             XXXX                      XXXX
Two to five years                                            XXXX                      XXXX
More than five years                                         XXXX                      XXXX
Total                                                        XXXX                      XXXX

6. OTHER LIABILITIES17
                                                            2007                      2006
General creditors                                           XXXX                      XXXX
PAYE / PRSI                                                 XXXX                      XXXX
Audit fee                                                   XXXX                      XXXX
Other                                                     XXXX                      XXXX
                                                            XXXX                      XXXX

15
   Revaluation of buildings is allowed but not required under Generally Accepted Accounting Practice
in Ireland (GAAP). Most credit unions do not revalue their property and will therefore not need this
note.
16
   This disclosure is best practice but not strictly required by GAAP.
17
   Not required when not material.


21
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007



7. MOVEMENTS ON RESERVES
                                         Retained Statutory Other         Total
                                         Earnings
At 30 September 2006                     XXX      XXX       XXX            XXX
Excess of income over expenditure
  In year                                XXX
Transfer from income and
   expenditure account                   (XXX)       XXX        XXX
At 30 September 2007                     XXX        XXX         XXX        XXX

STATUTORY RESERVE
Under the provisions of the Credit Union Act, 1997, at least 10% of each year's
surplus must be transferred to the statutory reserve.


8. DIVIDENDS AND LOAN INTEREST REBATE
The following distributions were made during the period:


                              2007                   2006
                              Rate   €               Rate €

Dividend on Shares            XX%    €XXX            XX%    €XXX
Loan Interest Rebate          XX%    €XXX            XX%    €XXX

The above dividends refer to the dividends paid out in those years from the surplus
earned in previous years. The directors are proposing a dividend of x% and a loan
interest rebate of x% for 2007 to be paid on (date).

9. RELATED PARTY TRANSACTIONS
Loans amounting to €XXX in total, were granted to officers of the Credit Union
during the period. At 30 September 2007 the balance outstanding on loans to
officers amounted to €XXX. At 30 September 2007 savings to officers amounted to
€XXX.

Any transactions with a director, spouse or close family member or business partner
of a director should be disclosed where the amount paid for the goods or service is
material to either the director or the credit union. Some example disclosures are
included below.

During the year Mr X, a director of the credit union, provided printing services to the
Credit Union to the amount of €XXXX. This was for printing the annual accounts
and Mr X was chosen following an open tender from 2 other printing suppliers.




22
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

During the year Mr Y a director of the credit union, provided investment business
advice in relation to €XXXX of investments made by the Credit Union. Mr Y
disclosed that he received commissions amounting to €XXXX in respect of this
advice.

On an ongoing basis Mr Z, a director of the credit union, provided provides legal
services to the credit union. This includes ongoing legal advice and initiation of
court action to recover delinquent loans. The total amount paid to Mr Y during the
year was €XXXX.


10. INSURANCE AGAINST FRAUD
The Credit Union has Insurance against fraud in the amount of €XXXX in compliance
with Section 47 of the Credit Union Act 1997.


11. NON-AUDIT SERVICES
It is a requirement that any non audit services provided by the auditor be described
in the financial statements. This could include assistance with bank reconciliations,
advice on investment strategies or short term secondment of staff to cover
temporary staffing shortages. One example is included below.

During the year, IFSRA asked every credit union in Ireland to prepare a report on
their investment products. The circular asking for the report suggested that the
credit unions auditor provide some assurance and / or assistance in the preparation
of this report. XYZ & Co Auditors were engaged to assist the credit union in making
the report. IFSRA were satisfied with our report and no regulatory action was taken.

12. RATES OF INTEREST CHARGED ON MEMBERS' LOANS
A rate of 12.68% (APR) is charged on members' loans. A rebate of 15% of gross
interest has been repaid to members in the current year and a rate of 15% was paid
for the previous year.

12. TREASURERS HONORARIUM
The Directors recommend that the Treasurer be paid an Honorarium for the year
ended 30 September 2007 of €XXX.

13. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Board and authorised for issue by
the Chairperson of the board on ________________.




23
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007



The following pages are not part of the formal financial statements of the credit
            union and are included for information purposes only




24
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

SCHEDULE 1 - OTHER INTEREST RECEIVABLE AND SIMILAR INCOME
                              2007      2006
Investment Income             XXX       XXX
Bank interest                 XXX       XXX

TOTAL                           XXX    XXX

SCHEDULE 2 - OTHER INCOME
                                2007   2006
ECCU Insurance Rebate           XXX    XXX
Fees                            XXX    XXX
Other Income                    XXX    XXX

TOTAL                           XXX    XXX

SCHEDULE 3 - OTHER MANAGEMENT EXPENSES
                                 2007  2006
Treasurers Honorarium            XXX   XXX
Rent and Rates                   XXX   XXX
Lighting, Heating and Cleaning   XXX   XXX
Repairs and Renewals             XXX   XXX
Security                         XXX   XXX
Printing and Stationery          XXX   XXX
Postage and Telephone            XXX   XXX
Donations and Sponsorship        XXX   XXX
Debt Collection                  XXX   XXX
Promotion and Advertising        XXX   XXX
Training Costs                   XXX   XXX
Convention Expenses              XXX   XXX
Chapter Expenses                 XXX   XXX
AGM Expenses                     XXX   XXX
Travel and Subsistence           XXX   XXX
Entertainment Costs              XXX   XXX
Bank Charges                     XXX   XXX
Overdraft Interest               XXX   XXX
Audit Fee                        XXX   XXX
Accountancy Charges              XXX   XXX
Supervisory Committee Expenses   XXX   XXX
General Insurance                XXX   XXX
Share and Loan Insurance (Gross) XXX   XXX
Pension                          XXX   XXX
Legal & Professional Fees        XXX   XXX
Computer Maintenance             XXX   XXX
Bad Debts Written Off            XXX   XXX
Miscellaneous Expenses           XXX   XXX
Death Benefit Insurance          XXX   XXX
Losses on Investments            XXX   XXX
Affiliation Fees                 XXX   XXX
SPS Contribution                 XXX   XXX


25
AAA CREDIT UNION LIMITED
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2007

Regulatory Levy                 XXX    XXX
Other Expenses                  XXX    XXX
       TOTAL                    XXX    XXX




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