STATEMENT OF CHANGES IN ACCUMULATED SURPLUS 累積盈餘變動報表

For the year ended 31 December 2004

Accumulated surplus as at 1 Januar y, as previously reported net deferred tax asset surplus as at 1 Januar y, as restated

CASH FLOW STATEMENT 現金流量表

For the year ended 31 December 2004

2004年12月31日止年度

Decrease/(increase) in fixed term deposits with banks of maturity over three months from date of inception

A nalysis of cash and cash equivalents at 31 December 12 月 31 日之現金及現金等價物分析

Fixed term deposits with banks (with maturity within three months)

Notes To The Accounts

1. Legal status

The Hong Kong Federation of Insurers (HKFI) is a company incorporated under the Hong Kong Companies Ordinance and is limited by guarantee of an amount equal to the annual subscription fee per Member. Income and proper ty of the HKFI shall be applied solely towards the promotion of the objec tiv es of t he HKFI as set fo rt h in its Memorandum of Association and no por tion thereof shall be payable to the Members of the HKFI.

2. Principal accounting policies

The principal accounting policies adopted in the preparation of these accounts are:

(a) Basis of preparation

The accounts have been prepared in accordance with accounting principles generally accepted in H ong K ong and comply with accounting standards issued by the H ong K ong Institute of Ce r tified P ublic Ac c ountants (HKICPA). They ha ve b een prepared under the historical cost convention.

(b)Recently issued accounting standards

The HKICPA has issued a number of new and revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards (new HKFRSs) which are effec tive for accounting periods beginning on or after 1 Januar y 2005. The HKFI has not early adopted these n ew HKFRSs in the financial statements fo r t he year ended 31 December 2004. The HKFI is in the process of mak ing an assessment of the impac t of these new HKFRSs and has so far concluded that the adoption of these new HKFRSs would not have a significant impac t on its results of operations and financial position.

賬目附註

1. 法定地位

香港保險業聯會（保聯）乃按照《香港 公司條例》正式註冊，其負債以擔保為 限，每位會員所承擔的法律責任為其每 年會費的數額。保聯的收入及資產只可 用於推廣及實踐該會列於 《立案章程》 內的宗旨，並且不可支付任何數額予保 聯的會員。

2. 主要會計政策

本賬目的編製主要所採用的會計政策：

(a) 編製準則

本賬目乃按照香港普遍採納的會計 準則及香港會計師公會頒布的準則 編製。賬目乃按照歷史成本常規法 編製。

(b) 近期頒布的會計準則

香港會計師公會頒布多項新訂及修 訂的香港財務報告準則和香港會計 準則（新準則），此等新準則於 2005年1月1日或以後的會計年度生 效。保聯並沒有於截至 2004年12月 31 日止計的財務報表中，提前採納 此等新準則。保聯正評估此等新準 則的影響，至目前為止，認為採納 新準則將不會對營運和財務情況有 重大影響。

(c) Income recognition

The HKFI's principal activity is to promote the business of insurance in Hong Kong and act on matters affec ting the common interests of Members

Subscription and registration fees received and receivable by the HKFI are recognized as revenue in the accounting period to which t he subscription and registration period relates.

Fees charged for registration of insurance agents cover a period of three years from date of registration and therefore that por tion of fees received which relates to future accounting periods is carried fo rw ard in the balance sheet as registration fees received in advance.

Interest income is recognized on a time propor tion basis, tak ing into account the principal amounts outstanding and the interest rates applicable

O ther income is recognized when received and receivable.

(d) Fixed assets

Fi x ed assets, c omprising office premises, leasehold improv ements, office equipment a nd furniture ar e stated at cost less accumulated depreciation.

Fixed assets are depreciated at rates sufficient to write off their c ost over their estimated useful liv es on a straight-line basis. The principal annual rates are as follows:

O ffice premises 10% Leasehold improvements 33-1/3%

O ffice equipment and furniture 25%

Major costs incurred in restoring fixed assets to their normal work ing condition are charged to the operati ng account. The gain or loss on disposal of a fixed asset is the difference between the net sales proceeds and the carr ying amount of the relevant asset and is recognized in the operating account.

(c) 收益確認

保聯的主要活動為推廣香港的保險 業務，並以會員的共同權益行事。

保聯已收及應收的會費及登記費乃 按有關的時期確認為該會計年度的 收入。

保險代理在登記日所付的登記費有 效期為三年，已收取的跨年度登記 費乃按時間比例在資產負債表上確 認為預收登記費。

利息收入依據尚未償還本金及適用 利率按時間的比例確認。

其他收入在已收或應收後確認。

(d) 固定資產

固定資產包括：辦公室物業、房屋 裝修、辦公室設備及傢具，以成本 值減累積折舊列賬。

固定資產以直線法於其估計可用年 限內將其成本值撇銷。主要之折舊 年率為：

辦公室物業 10% 房屋裝修 33-1/3% 辦公室設備及傢具 25% 用以修復固定資產至正常運作狀況 的費用均列於營運賬目內支銷，出 售固定資產的損益乃出售所得款項 淨額與有關資產賬面值的差額，並 於營運賬中確認。

At each balance sheet date, both estimated and internal sources of information are c onsidered to assess whether there is any indication that assets included in fixed assets are impaired. If any such indication exists, the recoverable amount of the asset is estimated and an impairment loss is recognized to reduce the asset to its recoverable amount. Such impairment losses are recognized in the operating account.

(e)Finance leases

Leases that substantially transfer to the HKFI all the risks and rewards of ownership of assets are accounte d for as finance leases. Finance leases are capitalized at the inception of the lease at the lower of the fair value of the leased assets or the present value of the minimum lease payments. Each lease payment is allocated betw een the c apital and finance charges so as to achieve a constant rate on the c apital balances outstanding. The corresponding rental obligations, net of finance charges, are included in long-term liabilities

T he finance charges are charged to the operating account over the lease periods.

Assets held under finance leases are depreciated over the shor ter of their estimated useful lives or the lease periods.

(f )Retirement benefit costs

The HKFI's contributions to defined contribution retirement schemes are expensed as incurred and ar e reduced by contributions forfeited by employees who leave the scheme prior to vesting fully in the contributions. The assets of the schemes are held separately from those of the HKFI in independently administered funds

在每年結算日，透過保聯內部及外 界所獲得的資訊，評核固定資產有 否耗蝕。如有跡象顯示該等資產出 現耗蝕，則估算其可收回價值及在 合適的情況下將減值虧損入賬，以 將資產減至其可收回價值。此等減 值虧損在營運賬目入賬。

(e) 融資租賃

融資租賃是指將擁有資產之風險及 回報實質上轉讓予保聯之租賃。融 資租賃之資產在開始時按租賃資產 之公平值或最低租賃付款之現值， 以較低者入賬。每期租金均分攤為 資本性支出及財務費用，以達到資 本結欠額之常數比率。相應租賃承 擔在扣除財務費用後計入長期負債 內。財務費用於租約期內在損益賬 中支銷。 以融資租賃持有之資產，按資產之 估計可用年限或租約期（以較短者 為準）計算折舊。

(f ) 退休金成本

保聯供款予一項界定的供款退休計 劃，供款額作為費用支銷，而員工 在取得全數供款利益前退出計劃而 被沒收的供款額，可以用作減少保 聯的供款。退休金計劃的資產與保 聯的資產分開持有，並由獨立管理 基金保管。

(g) Inventories

Inventories comprise publications and are stated at the lower of cost and net realisable value.

(h) Provisions

Provisions are recognized when the HKFI has a present legal or c onstruc tiv e obligation as a r esult of past events, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount c an be made . W here the HKFI expec ts a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is vir tually cer tain.

(i) Deferred taxation

Deferred taxation is provided in full, using the liability method, on temporar y differences arising between the tax bases of assets and liabilities and their carr ying amounts in the accounts. Taxation rates enacted or substantively enacted by the balance sheet date are used to determine deferred taxation.

Deferred tax assets are recognized to the ex tent that it is probable that future taxable profit will be available against which the temporar y differences and tax losses can be utilized

(g) 存貨

存貨包括刊物，乃按成本值或可變 現淨值二者的較低者入賬。

(h) 撥備

當保聯因已發生的事件須承擔現有 之法律性或構定性的責任，而解除 責任時有可能消耗資源，並將在責 任金額能夠可靠地作出估算的情況 下，需確立撥備。當保聯預計撥備 款可獲償付，則將償付款確認為一 項獨立資產，惟只能在償付款可實 質地確定時確認。

(i) 遞延稅項

遞延稅項採用負債法就資產負債之 稅基與它們在賬目之賬面值兩者之 短暫時差作全數撥備。遞延稅項採 用在結算日前已頒布或實質頒布之 稅率釐定。

遞延稅項資產乃就有可能將未來應 課稅溢利與可動用之短暫時差抵銷 而確認。

3. Finance costs

4. Taxation

Hong Kong profits tax has been provided at the rate of 17.5% on the estimated assessable profit for the year.

The amount of taxation charged to the profit and loss account represents:

Deferred taxation relating to origination and reversal of temporar y differences

The taxation on the HKFI's surplus before taxation differs from the theoretical amount that would arise using the Hong Kong standard profits tax rate as follows:

保聯除稅前溢利之稅項與假若採用香港 標準利得稅稅率計算之理論稅額之差額 如下： asset from an increase in tax rate

The movement on the net deferred tax asset account is as follows: 淨遞延稅項資產賬目之變動如下： credited to the operating account

During the years ended 31 December 2004 and 2003, no amounts h a v e b een p ai d in r espe c t of G o v e r ni n g Committee member s’ e molumen t s, p ensions or for a ny compensation in respect of loss of office.

5. 管治委員會委員酬金

截 至 200 4 及 200 3 年 1 2 月 3 1 日止年度 ， 管治委員會委員並無收取任何為保聯服 務的酬金、退休金或因辦公室損失而支 付的賠款。

Net book value of leased asset - office equipment

7.

Finance lease obligation wholly repayable within five years

Reconciliation of profit before taxation to net cash inflow from operating activities

9. Analysis of changes in financing during the year

9. 分析本年度財務變更

10. Contingent liability

An insurance agent, whose registration with the Insurance Agents Registration Board was terminated, has launched a judicial review against the HKFI. Having taken appropriate legal advice, the Governing Committee believes that there will not be significant liability arising from this case

11. Related party transac tions

Management and administration suppor t fees received from the ICCB

The HKFI incurs costs on b ehalf of the I CC B The abo ve f ees are r e-imbursements of a c tual and shared c ost s determined by a contrac t renewable annually.

12. Approval of accounts

T he accounts were appro v ed by the G o v e r ni n g Committee on 14 March 2005.

10. 或然負債 一名被保險代理登記委員會撤銷登 記 資格的保險代理向保聯提出司法 覆 核。尋求適當的法律意見後，管治 委 員會相信事件不會帶來重大的負債。

11. 關連人士交易

保聯代保險索償投訴局支付管理及 行 政支援費用。上述費用為根據每年 更 新的合約而償付實際和分擔的費用。

12. 賬目通過 此賬目乃於2005年3月14日經管治委員 會核准。