CFM 2017 REPORTS AND FINANCIAL STATEMENTS

No. Rujukan PPM26/01

4

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) REPORTS AND FINANCIAL STATEMENTS 31 DECEMBER 2017

Page Council Members’ Report

1–4

Report of the Auditors

5-8

Statement of Assets and Liabilities

9

Statement of Income and Expenditure

10 - 12

Statement of Receipts and Payments

13 - 15

Notes to the Financial Statements

16 - 21

Statement by Council Members

22

Statutory Declaration

22

No. Rujukan PPM26/01

4

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) REPORTS AND FINANCIAL STATEMENTS 31 DECEMBER 2017

SHANKER & CO (No. AF: 1881) Chartered Accountants

No. Rujukan PPM26/01

4

Page 1

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) COUNCIL MEMBERS’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2017 The council members present their report and the audited financial statements of the Forum for the year ended 31 DECEMBER 2017.

PRINCIPAL ACTIVITY The principal activity of the Forum is to promote the national policy objectives for the communication and multimedia industry as enshrined in the Communications and Multimedia Act 1998. There has been no significant change in the nature of this activity during the year.

RESULTS RM Deficit of income over expenditure, after taxation

(178,541)

Accumulated funds brought forward

1,516,173

Accumulated funds carried forward

1,337,632

BAD AND DOUBTFUL DEBTS Before the financial statements of the Forum were made out, the council members took reasonable steps to ascertain that action had been taken in relation to the writing off of bad debts and the making of provision for doubtful debts and are satisfied that all known bad debts had been written off and that adequate provision had been made for doubtful debts.

At the date of this report, the council members are not aware of any circumstances that would render the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements of the Forum inadequate to any substantial extent.

CURRENT ASSETS Before the financial statements of the Forum were made out, the council members took reasonable steps to ascertain whether any current assets, other than debts, which were unlikely to realise in the ordinary course of business their value as shown in the accounting records of the Forum and to the extent so ascertained were written down to an amount that they might be expected so to realise.

At the date of this report, the council members are not aware of any circumstances that would render the values attributed to current assets in the financial statements of the Forum misleading.

No. Rujukan PPM26/01

4

Page 2

VALUATION METHODS At the date of this report, the council members are not aware of any circumstances which have arisen which render adherence to the existing method of valuation of assets or liabilities in the financial statements of the Forum misleading or inappropriate.

CONTINGENT AND OTHER LIABILITIES At the date of this report there does not exist:(i) any charge on the assets of the Forum that has arisen since the end of the financial year which secures the liabilities of any other person; or (ii) any contingent liability in respect of the Forum that has arisen since the end of the financial year.

No contingent liability or other liability of the Forum has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the council members, will or may substantially affect the ability of the Forum to meet its obligations as and when they fall due.

CHANGE OF CIRCUMSTANCES At the date of this report, the council members are not aware of any circumstances, not otherwise dealt with in this report or the financial statements of the Forum, that would render any amount stated in the financial statements misleading.

ITEMS OF AN UNUSUAL NATURE The results of the operations of the Forum for the financial year were not, in the opinion of the council members substantially affected by any item, transaction or event of a material and unusual nature.

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the council members, to affect substantially the results of the operations of the Forum for the financial year in which this report is made.

No. Rujukan PPM26/01

4

Page 3

COUNCIL MEMBERS 1. Mohamad Yusrizal Bin Dato' Yusoff

- Chairman

2. Azizan Mohd Afandi

- Deputy Chairman

3. Mahfuzah Binti Azahari

- Treasurer

4. Dr. Elistina Abu Bakar

- Secretary

5. Megat Ishak Ma'munor Rashid

- Councilor

6. Abdul Rahman Samad

- Councilor

7. Aini Hajar Alias

- Councilor

8. Datin Mohana Mohariff

- Councilor

9. Muhammad Razillah Abdullah

- Councilor

10. Datin Norhanizar Shafie

- Councilor

11. Azlinda Zainal Abidin

- Councilor

12. Mohamed Kadri Mohamed Taib

- Councilor

13. Johnson Lim

- Councilor

Shanker(&(Co((AF(1881)(( Chartered(Accountants Level(2,(Wisma(Eagles(Community(Centre,( 11,(Jalan(TP(6,(Taman(Perindustrian(UEP 47620(Subang(Jaya,(Selangor.( Tel(:(03(–(8081(4345((((((Fax(:(03(–(8023(3870 email:(shanker.jericho@gmail.com

No. Rujukan PPM26/01

4

Page 5

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) FINANCIAL STATEMENTS - 31 DECEMBER 2017 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA Report on the Audit of the Financial Statements Opinion We have audited the financial statements of FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA, which comprise statement of assets and liabilities as at 31 DECEMBER 2017, and the statement of income and expenditure, and the statement of receipts and payments for the year then ended, and a summary of significant accounting policies and other explanatory notes, as set out on pages 9 to 21.

In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Forum as at 31 DECEMBER 2017, and of its financial performance and its cash flows for the year then ended in accordance with applicable approved accounting standards in Malaysia.

Basis for Opinion We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence and Other Ethical Responsibilities We are independent of the Forum in accordance with the By-Laws (on Professional Ethics, Conduct and Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.

No. Rujukan PPM26/01

4

Page 6

Information Other than the Financial Statements and Auditors’ Report Thereon The Council Members of the Forum are responsible for the other information. The other information comprises the Council Members’ Report but does not include the financial statements of the Forum and our auditors’ report thereon.

Our opinion on the financial statements of the Forum does not cover the Council Members’ Report and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements of the Forum, our responsibility is to read the Council Members’ Report and, in doing so, consider whether the Council Members’ Report is materially inconsistent with the financial statements of the Forum 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 the Council Members’ Report, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Council Members for the Financial Statements The Council Members of the Forum are responsible for the preparation of financial statements of the Forum that give a true and fair view in accordance with applicable approved accounting standards in Malaysia. The Council Members are also responsible for such internal control as the Council Members determine is necessary to enable the preparation of financial statements of the Forum that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements of the Forum, the Council Members are responsible for assessing the Forum’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 the Council Members either intend to liquidate the Forum or to cease operations, or have no realistic alternative but to do so.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements of the Forum as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with approved standards on auditing in Malaysia and International Standards on Auditing 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.

No. Rujukan PPM26/01

4

Page 7

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on Auditing, 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 of the Forum, 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 Forum’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Council Members.

• Conclude on the appropriateness of the Council Members’ 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 Forum’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements of the Forum 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 auditors’ report. However, future events or conditions may cause the Forum to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements of the Forum, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Council Members 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.

No. Rujukan PPM26/01

4

Page 8

Other Matters This report is made solely to the Members of FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA and for no other purpose. We do not assume responsibility to any other person for the content of this report.

SHANKER & CO AF: 1881 Chartered Accountants Subang Jaya Dated: 16 MAY 2018

JAYASHANKER S/O RAJAGOPAL No: 02778/12/2018 (J) Chartered Accountant

No. Rujukan PPM26/01

4

Page 9

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) STATEMENT OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2017

Note PROPERTY, PLANT AND EQUIPMENT

2017

2016

RM

RM

6

110,603

156,948

7

76,764 1,196,001

108,321 1,283,630

1,272,765

1,391,951

45,736

32,726

45,736

32,726

1,227,029

1,359,225

1,337,632

1,516,173

1,516,173

1,928,872

(178,541)

(412,699)

1,337,632

1,516,173

CURRENT ASSETS Receivables Cash and bank balances

Less : CURRENT LIABILITIES Payables

8

NET CURRENT ASSETS

FINANCED BY :ACCUMULATED FUNDS DEFICIT ON INCOME - CURRENT YEAR

The accompanying notes form an integral part of the financial statements.

No. Rujukan PPM26/01

4

Page 10

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2017 Note

2017

2016

RM

RM

INCOME Grant received Annual subscription fees Hibah received

2,000,000 67,080 -

2,000,000 71,980 10

2,067,080

2,071,990

50,914 43,037 14,463 57,993 57,714 159,104 40,350 27,317

246,526 35,000 162,289 34,499 81,510 71,098 -

114,480 25,156 5,404 30,620 9,010

108,000 27,855 -

25,209 48,529

8,782 77,000

11,280 300 15,199 28,273

16,314 500 7,127 32,007

2,617 8,839

7,313 26,630

775,808

942,450

EXPENDITURE Communications and Public Relation (CPRD): Advertising and promotion Annual report Event and seminar expenses Knowledge sharing session Media engagement Newsletter (SHOUT) Website maintenance World Telecommunications day Complaints and Compliance (CCMD): Call Centre: - Superceed - Toll Free 1800-88-2222 Complaints guidebook Knowledge sharing session Portal aduan Stakeholder Management (SMD): AGM expenses Membership Meeting expenses: Allowances - Council and bureau meetings - Broadband Council and bureau meetings Stakeholder engagement Travelling expenses: - Councillors and bureau petrol/parking/toll - Councillors and bureau travelling and accommodation

Balance carried forward

No. Rujukan PPM26/01

4

Page 11

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2017

Note Balance brought forward Secretariat Administration (SAD): Auditors' remuneration Bank charges Cleaning service charges Corporate attire Courier and postage charges Depreciation of property, plant and equipment IT registration and license fees Maintenance of office Motor vehicle maintenance: - Insurance and road tax - Petrol, upkeep and toll charges Newspapers and periodicals Printing and stationery: - General administration printing expenses Professional fees Rental of office equipment Secretariats' cost: - Allowances - EPF contribution - Insurance premium - Medical expenses Salaries and bonuses Seminar expenses and secretariat training - SOCSO contribution - Staff welfare and amenities - Interns Service tax charges/GST paid Telephone and fax charges: - Fixed line and broadband charges Travelling expenses: - Secretariat petrol/parking/toll - Secretariat travelling and accommodation

2017

2016

RM

RM

775,808

942,450

3,500 1,142 3,050 232 2,248 48,024 4,559 4,856

3,500 1,246 2,550 3,284 68,085 16,154 32,976

2,388 11,477 2,646

2,925 5,214 2,391

9,676 1,100 8,375

22,916 3,900 7,613

25,433 145,418 38,370 12,077 1,114,245 200 11,500 2,400 4,167

37,196 136,566 37,854 11,002 1,046,549 8,108 9,768 2,377 22,390 34,495

11,019

12,392

1,130 581

7,872 2,916

2,245,621

2,484,689

No. Rujukan PPM26/01

4

Page 12

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31 DECEMBER 2017

Note DEFICIT OF INCOME OVER EXPENDITURE LESS: TAXATION

9

DEFICIT OF INCOME OVER EXPENDITURE AFTER TAXATION The accompanying notes form an integral part of the financial statements.

2017

2016

RM

RM

(178,541)

(412,699)

-

-

(178,541)

(412,699)

No. Rujukan PPM26/01

4

Page 13

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 31 DECEMBER 2017 2017

2016

RM

RM

2,000,000 66,970 230 12,600 -

2,000,000 47,345 10

2,079,800

2,047,355

47,369 43,037 12,536 48,452 51,725 120,229 40,638 27,317

376,481 35,000 170,131 34,499 81,510 71,098 -

114,480 28,429 5,404 29,284 5,859

108,000 24,591 -

21,709 56,184

8,782 57,000

11,280 300 8,706 567

15,114 500 7,127 32,007

2,617 8,839

7,312 26,629

684,961

1,055,781

RECEIPTS Grant received Annual subscription - current period - other periods Sponsorship received Hibah received

PAYMENTS Communications and Public Relation Expenses (CPRD): Advertising and promotion Annual report Event and seminar expenses Knowledge sharing session Media engagement Newsletter (SHOUT) Website maintenance World Telecommunications day Complaint and Compliance (CCMD): Call Centre: - Superceed - Toll Free 1800-88-2222 Complaint guidebook Knowledge sharing session Portal aduan Stakeholder Management (SMD): AGM expenses Membership Meeting expenses: Allowances - Council and bureau meetings - Broadband Council and bureau meetings Stakeholder engagement Travelling expenses: - Councillors and bureau petrol/parking/toll - Councillors and bureau travelling and accommodation

Balance carried forward

No. Rujukan PPM26/01

4

Page 14

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

Balance brought forward Secretariat Administration (SAD): Auditor/accounting/payroll fees Bank charges Cleaning service charges Corporate attire Courier and postage charges Property, plant and equipment acquired IT registration and license fees Maintenance of office Motor vehicle maintenance: - Insurance and road tax - Petrol, upkeep and toll charges Newspapers and periodicals Printing and stationery: - General administration printing expenses Professional fees Rental of office equipment Retreat expenses Secretariats' cost: - Allowances - EPF contribution - Insurance premium - Medical expenses Salaries and bonuses Seminar expenses and secretariat training - SOCSO contribution - Staff welfare and amenities - Interns Service tax charges/GST paid Telephone and fax charges: - Fixed line and broadband charges Travelling expenses: - Secretariat petrol/parking/toll - Secretariat travelling and accommodation

2017

2016

RM

RM

684,961

1,055,781

7,110 1,142 3,050 232 2,200 1,679 4,559 4,856

3,500 1,246 2,550 3,284 43,907 16,154 14,073

2,388 11,477 2,646

2,925 5,214 2,391

34,294 7,645 27,708

24,520 3,900 7,613 18,903

25,433 145,418 32,928 12,077 1,114,245 200 11,500 13,755 4,167

37,196 136,566 36,729 11,002 1,046,549 8,108 9,768 487 22,390 34,495

10,919

15,838

689 151

7,871 2,915

2,167,429

2,575,875

No. Rujukan PPM26/01

4

Page 15

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) STATEMENT OF RECEIPTS AND PAYMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

Deficit of receipts over payments

2017

2016

RM

RM

(87,629)

(528,520)

Cash and bank balances brought forward

1,283,630

1,812,150

Cash and bank balances carried forward

1,196,001

1,283,630

1,193,748 2,253

1,281,465 2,165

1,196,001

1,283,630

Note : Cash and cash equivalents Cash at bank Cash in hand

The accompanying notes form an integral part of the financial statements.

No. Rujukan PPM26/01

4

Page 16

FORUM PENGGUNA KOMUNIKASI DAN MULTIMEDIA MALAYSIA (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS - 31 DECEMBER 2017 1. GENERAL INFORMATION The Forum is registered under the Societies Act, 1966.

The Forum’s principal place of activity is at Malaysian Communications & Multimedia Commission (MCMC), Off Persiaran Multimedia, 63000, Cyberjaya, Selangor Darul Ehsan.

The financial statements are presented in Ringgit Malaysia.

2. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES The Forum’s financial risk management policy seeks to ensure that adequate financial resources are available for the operation of the Forum whilst managing its interest rate, foreign currency, liquidity and credit risks which are in the normal course of the Forum’s business.

The Forum’s overall strategies, tolerance of risks and general management philosophy are determined by the management and it operates within clearly defined guidelines that are approved by the Council in accordance with prevailing economic and operating conditions.

2.1 Foreign Currency Risk The Forum does not have any significant exposure to foreign currency risk as its transactions and balances are substantially denominated in Ringgit Malaysia.

The Forum does not engage in derivative financial instruments.

2.2 Liquidity Risk The liquidity risk of the Forum is minimal as it maintains adequate working capital to meet its obligations as and when they fall due.

2.3 Interest Rate Risk The interest rate risk of the Forum is minimal as it does not have any interest bearing liabilities and maintains limited cash balance.

2.4 Credit Risk The Forum has no significant concentration of credit risk.

No. Rujukan PPM26/01

4

Page 17

3. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The financial statements of the Forum have been approved by the council members for issuance on 16 MAY 2018.

The financial statements of the Forum have been prepared in accordance with applicable approved accounting standards in Malaysia and the provisions of the Societies Act, 1966. This requires the council members to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ 4. SIGNIFICANT ACCOUNTING POLICIES 4.1 Accounting Convention The financial statements of the Forum have been prepared under the historical cost convention and other measurement basis otherwise indicated in the respective accounting policies as set 4.2 Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Depreciation is calculated to write off the cost of the property, plant and equipment on a straight line basis over the estimated useful lives of the assets concerned.

The principal annual rates used for this purpose are as follows :-

Motor vehicle Furniture and fittings Office equipment Computer and software Signage Website

% 20 10 10 20 10 20

Fully depreciated property, plant and equipment are retained in the financial statements until they are no longer in use.

4.3 Income Recognition Income of the Forum is recognised on the following basis:a)

Grant from Suruhanjaya Komunikasi dan Multimedia Malaysia is recognised on a receipts basis.

b)

Membership subscriptions are recognised on a receivable basis.

c)

Interest income is recognised on a receipts basis.

No. Rujukan PPM26/01

4

Page 18

4.4 Cash and Cash Equivalents Cash and cash equivalents comprise cash and bank balances and highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of change in value.

4.5 Impairment of Assets The carrying amounts of the Forum’s assets other than financial assets are reviewed for impairment where there is an indication that the assets might be impaired. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts and the impairment loss is recognised whenever the recoverable amount is less than the carrying amount of the asset.

The impairment loss is charged to the statement of comprehensive income immediately except for the impairment on a revalued asset where the impairment loss is recognised directly against the revaluation surplus account to the extent of the surplus credited from the previous revaluation for the same assets with the excess of the impairment loss charged to the income statement. Subsequent increase in the recoverable amount of an asset is treated as reversal of the previous impairment loss and is recognised to the extent of the carrying amount of the assets that would have been determined had no impairment loss been recognised. The reversal is recognised in the statement of comprehensive income immediately except for the reversal of an impairment loss on a revalued asset where the reversal of the impairment loss is treated as a revaluation increase and credited to the revaluation surplus account of the same 4.6 Provision for Liabilities Provision for liabilities are recognised when the Forum has present obligations as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount can be made. Provisions are reviewed at each statement of financial position date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount of a provision is the present value of the expenditure expected to be required to settle the 4.7 Financial Instruments 4.7.1 Financial instruments recognised on the balance sheet Financial instruments are recognised in the statement of financial position when the Forum has become a party to the contractual provisions of the instrument.

The particular recognition method adopted for financial instruments recognised on the statement of financial position is disclosed in the individual policy statements associated 4.7.2 Disclosure of fair values The Forum’s financial instruments are accounted for under the historical cost convention. Fair value represents the amount at which an asset could be exchanged, or a liability settled, between willing parties in an arm’s length transaction.

No. Rujukan PPM26/01

4

Page 19 Methodologies The methodologies and assumptions used in ascertaining fair values depend on the terms and risk characteristics of the instruments and are briefly set out below.

Financial assets and liabilities The fair values of financial assets and liabilities maturing within 12 months are stated at approximate their carrying values as at the statement of financial position date.

5. PRINCIPAL ACTIVITY The principal activity of the Forum is to promote the national policy objectives for the Communication and Multimedia industry as enshrined in the Communications and Multimedia Act 1998.

6. PROPERTY, PLANT AND EQUIPMENT Balance as at 1.1.17

Additions

(Disposals)

Balance as at 31.12.17

Cost

RM

RM

RM

RM

Motor vehicle Furniture and fittings Office equipment Computer and software Signage Website

101,841 30,501 56,465 259,697 2,748 19,500

1,679 -

-

101,841 30,501 58,144 259,697 2,748 19,500

470,752

1,679

-

472,431

Balance as at 1.1.17

Additions

(Disposals)

Balance as at 31.12.17

Accumulated depreciation

RM

RM

RM

RM

Motor vehicle Furniture and fittings Office equipment Computer and software Signage Website

44,131 11,727 38,706 196,994 2,747 19,499

20,368 3,050 2,365 22,241 -

-

64,499 14,777 41,071 219,235 2,747 19,499

313,804

48,024

-

361,828

No. Rujukan PPM26/01

4

Page 20 Net Book Value 2017 RM

Motor vehicle Furniture and fittings Office equipment Computer and software Signage Website

2016 RM

Depreciation Charge 2017 RM

2016 RM

37,342 15,724 17,073 40,462 1 1

57,710 18,774 17,759 62,703 1 1

20,368 3,050 2,365 22,241 -

20,368 3,050 4,570 40,097 -

110,603

156,948

48,024

68,085

7. RECEIVABLES 2017 RM Other receivables Deposits Prepayments

8.

2016 RM

3,456 49,110 24,198

33,347 1,571 73,403

76,764

108,321

PAYABLES 2017 RM Accruals Other payables

2016 RM

3,500 42,236

12,726 20,000

45,736

32,726

9. TAXATION The Forum does not have any income tax charge for the financial year as its income is exempt as follows:i)

Grant from Suruhanjaya Komunikasi dan Mulitimedia Malaysia is exempted from income tax based on the Income Tax Order (Exemption) (No 22) 2006.

ii)

Statutory income derived from members’ subscriptions are exempted from the payment of income tax based on the Income tax (Exemption) (No.19) Order 2005.

No. Rujukan PPM26/01

4

Page 21

10. FINANCIAL INSTRUMENTS Credit Risk As at 31 DECEMBER 2017, the Forum has no significant concentration of credit risk and places its cash with creditworthy financial institutions.

Credit Risk As at 31 DECEMBER 2017, the Forum has no significant concentration of credit risk and places its cash with creditworthy financial institutions.

11. RE CLASSIFICATION OF FINANCIAL STATEMENTS The financial statements of the Forum for the previous year has be re-classified in order to conform with the current year's presentation.