peb annual report 2012

7/24/2019 PEB Annual Report 2012

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professional engineers board singapore5 Maxwell Road 1

ststorey Tower Block MND Complex Singapore 069110


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President and Members of the Board 2

Mission, Key Objectives and Functions 4

Registration and Licensing 5

Disciplinary Inquiries 6

Activities of the Board 7

Financial Statements

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To safeguard life, property, and welfare of the public by setting and maintaining highstandards for registering professional engineers, and by regulating and advancingthe practice of professional engineering.

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To maintain an internationally acceptable standard of assessment whichemphasizes quality academic education, examination, and practicalexperience that ensures only competent individuals are accepted forregistration as professional engineers.

To maintain a process that ensures professional engineers demonstrate ahigh standard of professional development, and conduct and ethics that meetthe expectations of clients and consumers.

To develop responsible self-governance of the profession through judiciousadministration of the Act and Rules on professional conduct and ethics.

To coordinate and facilitate cross-border mobility of qualified professionalengineers.

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To keep and maintain a register of professional engineers, a register ofpractitioners and a register of licensees.

To hold or arrange for the holding of such examinations as the Boardconsiders necessary for the purpose of enabling persons to qualify forregistration under the Professional Engineers Act.

To approve or reject applications for registration under Professional EngineersAct or to approve any such applications subject to such restrictions as it maythink fit to impose.

To establish and maintain standards of professional conduct and ethics of theengineering profession.

To promote learning and education in connection with engineering, eitheralone or in conjunction with any other professional body.

To hear and determine disputes relating to professional conduct or ethics ofprofessional engineers or to appoint a committee or arbitrator to hear anddetermine those disputes.

To license corporations and partnerships which supply professionalengineering services in Singapore.

Generally to do all such acts, matters and things as are necessary to becarried out under the provisions of Professional Engineers Act.

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In year 2012, the Board conducted 20 professional interview sessions for 98applicants while a total of 71 candidates were registered as professional engineersduring the year.

Table 1 shows the number of new professional engineers registered in the last 5years.

Table 1: Number of Newly Registered Professional Engineers By Year

Branch of EngineeringNumber of Professional Engineers Registered

2008 2009 2010 2011 2012

Civil 10 28 24 26 31

Electrical 5 9 14 10 27

Mechanical 1 8 5 9 13

TOTAL 16 45 43 45 71

As at 31 Dec 2012, there was a total of 3491 professional engineers on the registermaintained under Section 8(1)(a) of the Professional Engineers Act. Table 2 shows

the breakdown and distribution of the number of professional engineers registered inthe 3 main branches of engineering (namely, civil, electrical and mechanical).

Table 2: Number of Professional Engineers Registered As At 31 Dec 2012

Branch of Engineering SingaporeanNon-

Singaporean

Total

Number Percent

Civil & Structural 1206 539 1745 50.0%

Electrical 695 110 805 23.0%

Mechanical 703 135 838 24.0%

Others1 90 13 103 3.0%

TOTAL 2694 797 3491 100%

1 Others include Aeronautical, Chemical, Electronic, Environmental, Industrial, Information Technology,Marine, Naval Architecture and Production.

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In year 2012, the Board conducted a total of 5 professional interview sessions for 14professional engineers who applied for registration in the specialised branch ofgeotechnical engineering. A total of 4 professional engineers were registered in thespecialised branch of geotechnical engineering during the year.

As at 31 Dec 2012, there was a total of 96 professional engineers on the registermaintained under Section 8(1)(b) of the Professional Engineers Act. A total of 80professional engineers were registered in the specialised branch of geotechnicalengineering while a total of 16 professional engineers were registered in thespecialised branch of amusement ride engineering.

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As at 31 Dec 2012, there was a total of 2150 professional engineers on the AnnualRegister of Practitioners maintained under Section 8(1)(c) of the Professional

Engineers Act. 1341 professional engineers did not apply for practising certificatesfor 2012.

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As at 31 Dec 2012, there was a total of 155 licensees on the Boards register oflicensed corporations, multi-discipline partnerships and limited liability partnershipsmaintained under Section 8(1)(d) of the Professional Engineers Act. Table 3 showsthe breakdown of the licencees.

Table 3: Number of Licensees As At 31 Dec 2012

Type of Corporations/Partnerships Number of licensees

Limited corporations 129

Unlimited corporations 6

Multi-discipline/Limited liability partnerships 20

TOTAL 155

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In 2012, Investigation Committees conducted inquiries on 3 complaint cases against3 professional engineers, of which one was a carried-over case from 2011. Of theseinquires, one was completed and referred to a Disciplinary Committee, one wasterminated and one was on-going.

In 2012, a Disciplinary Committee completed the formal inquiry involving aprofessional engineer who was suspended from practice for a period of 6 monthsand ordered to pay costs. [Note:In the previous year 2011, Investigation Committeesconducted inquiries on 5 complaint cases and Disciplinary Committees completedthe formal inquiries of 2 disciplinary cases.]

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The Board held a total of 11 meetings in year 2012.

PPrrooffeessssiioonnaall EEnnggiinneeeerrssRReeggiisstt rraatt iioonnEExxaammiinnaatt iioonnss The Examination Committee, chaired by Board member Er. Assoc Prof Chew SingPing, held 3 meetings in 2012 and oversaw the conduct of the Fundamentals ofEngineering Examination (FEE), Practice of Professional Engineering Examination(PPE) and Geotechnical Engineering Examination. The Practice of ProfessionalEngineering Examination was conducted on 9 May 2012 for civil, electrical andmechanical engineering. The Fundamentals of Engineering Examination wasconducted on 26 Sep 2012 for civil engineering and on 27 Sep 2012 for electricaland mechanical engineering. Summaries of the results of the two examinations areas shown in the Tables 4 and 5 below. The Geotechnical Engineering Examination

was conducted on 25 Sep 2012. 7 candidates sat for the examination, of whom 2passed.

Tables 4: Results of PPE 2012

Branch of Engineering

PPE 2012

No ofCandidates

No of Passes Pass Rate

Civil 189 56 29.6%

Electrical 56 20 35.7%

Mechanical 57 22 38.6%

OVERALL 302 98 32.5%

Tables 5: Results of FEE 2012

Branch of Engineering

FEE 2012

No ofCandidates

No of Passes Pass Rate

Civil 247 159 64.4%

Electrical 100 72 72.0%

Mechanical 90 38 42.2%

OVERALL 437 269 61.6%

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DDiiaalloogguueewwii tthhBBooaarrddooffEEnnggiinneeeerrssMMaallaayyssiiaaThe Board attended the annual dialogue meeting with Board of Engineers Malaysiaat the Resort World Sentosa Convention Centre from 18 - 20 Apr, 2012. The twoBoards updated and discussed with each other issues of mutual interests such asthe use of Building Information Modelling in the construction industry, developments

in the area of green buildings and sustainability, and ASEAN MRA on engineeringservices.

AASSEEAANNMMuuttuuaall RReeccooggnnii tt iioonnAArrrraannggeemmeenntt OOnnEEnnggiinneeeerriinnggSSeerrvviicceessThe Board had been involved in the implementation of the ASEAN Mutual RecognitionArrangement on Engineering Services. In this regard, the ASEAN Chartered ProfessionalEngineer (ACPE) Monitoring Committee Singapore, which had been authorised by the Board,continued to process applications submitted by professional engineers for registration asACPEs. For the year 2012, 17 applications for registration as ACPEs were approved.As at 31 Dec 2012 the total number of ACPEs on the ACPE Register is 533,comprising of 99 from Indonesia, 160 from Malaysia, 190 from Singapore and 84

from Viet Nam.

PEB also participated in the ACPE Roundtable Discussions held on 4 Jul 2012 and26 Sep 2012 in conjunction with ACPE Coordinating Committee Meetings. Theobjective of the events was to promote the implementation of the ASEAN MutualRecognition Arrangement on Engineering Services among stakeholders and shareon common areas of interest such as opportunities and challenges for engineeringand construction, capability building, engineering mobility, and cooperation andcollaboration.

DDaayyooffDDeeddiiccaatt iioonn22001122PEB held the Day of Dedication 2012 on 23 Oct 2012 at the Jubilee Hall, Gardens bythe Bay. This was an occasion to celebrate the role and contribution of professionalengineers in the development of Singapore's buildings and infrastructures. Duringthe event, professional engineers also pledged and reaffirmed the profession'sdedication of service to society and commitment to high standards of professionalengineering practice.

Acting Minister for Manpower and Senior Minister of State, Ministry of NationalDevelopment, Mr Tan Chuan-Jin was the guest of honour for the event. In his

address, Mr Tan noted the significant contributions of engineers to the developmentof Singapore. At the same time he highlighted that engineers had a continuing role toplay in addressing issues such as our limited land and water resources, andchallenges like energy efficiency and environmental sustainability. He said that weneeded to promote engineering as a challenging and rewarding career and weshould help students to better appreciate the relevance as well as significance ofengineering. He said that we need to continuously develop and enhance thecapabilities of our engineers. Technology had been evolving very quickly, and PEsmust keep up-to-date and acquire new knowledge, skills and expertise. Just asimportantly, he said that we should give proper recognition for the contributions thatour engineers had made, and who were role models that our young could look up to.

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In his address, President PEB, Er. Lau Joo Ming mentioned that engineers playedan important role. They were behind many of Singapores highly developedinfrastructures which had elevated the standard of living, generated new businessand capabilities and improved the lives of people. He urged professional engineers toreach for high standards and continue to dedicate our service to the development of

nation and society and act with prime regard to public interests, health and safety,and strive for the use of natural resources efficiently and economically; and ensurethat our engineering works impact our environment minimally.

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In 2012, the Board awarded scholarships of $3,000 each to 12 engineeringundergraduates from Nanyang Technological University (NTU) and 11 engineeringundergraduates from National University of Singapore (NUS). The Board alsoawarded Gold Medals to NUS and NTU graduands in civil, electrical and mechanicalengineering, comprising 6 Gold Medals to B.Eng. graduands (NTU - 3 and NUS 3)and 6 Gold Medals to MSc graduands (NTU - 3 and NUS 3).

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An appreciation dinner was held on 22 Nov 2012 at the Peach Garden Restaurant atHotel Miramar Singapore to thank professional engineers who had renderedvoluntary service to the Board. About 100 professional engineers who were membersof the various committees of the Board (Investigation Committees, ExaminationCommittee, CPD Committee, Working Committees etc), members of Task Forcesand the Professional Interview Panels attended the dinner.

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PROFESSIONAL ENGINEERS BOARD,SINGAPORE

FINANCIAL STATEMENTS

for the year ended31 December 2012

CS Tan & Co is a partnership registered in Singapore and anindependent member firm of the International Accounting and

Audit Network, a French entity.


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PROFESSIONAL ENGINEERS BOARD SINGAPORE

Statement y the Board

n

the opinion

o

the Board the accompanying financial statements together with the notes

thereon are drawn up in accordance with the Singapore Financial Reporting Standards so as to

present fairly in all material respects the state

o

affairs o the Professional Engineers Board

Singapore

as

at

3

December 2012 and

o

its income and expenditure comprehensive income

changes in funds and cash flows for the financial year then ended on that date.

Signed on behalfo the Board

Chin Jen Chyi

Registrar

Singapore

0


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Independent Auditors Report to the Members of

Professional Engineers Board, Singapore

Report on the Financial Statements

We have audited the accompanying financial statements of Professional Engineers Board,Singapore which comprise the statement of financial position at 31 December 2012, incomestatement, statement of comprehensive income, statement of changes in funds and statement ofcash flows for the financial year then ended and a summary of significant accounting policies and

other explanatory information.

Board Managements Responsibility for the Financial Statements

The Boards management is responsible for the preparation of financial statements that give a trueand fair view in accordance with the provisions of the Professional Engineers Act (the Act) andSingapore Financial Reporting Standards, and for devising and maintaining a system of internalaccounting controls sufficient to provide a reasonable assurance that assets are safeguardedagainst loss from unauthorised use or disposition, that transactions are properly authorised andthat they are recorded as necessary to permit the preparation of true and fair income statementsand statements of financial position and to maintain accountability of assets.

Auditors Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with Singapore Standards on Auditing. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditorsjudgement, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditor considers

internal controls relevant to the entitys preparation of financial statements that give a true and fairview in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entitys internal controls. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonableness of

accounting estimates made by management, as well as evaluating the overall presentation of thefinancial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

CS Tan & Co is a partnership registered in Singapore and an independent member firm of the International Accounting and Audit

Network, a French entity.


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CSTAN

Co

Opinion

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

of

Singapore Financial Reporting Standards so as to give a true and fair view

of

the state

of

affairs

of

the Board at

3

December 2012 and the results comprehensive income changes in funds and

cash flows for the financial year ended on that date.

Report

on

Other egal and Regulatory Requirements

In our opinion the accounting and other records required y the Act to be kept y the Board have

been properly kept in accordance with the provisions

of

the Act.

CSTAN CO

Public Accountants and

Certified Public Accountants

Singapore

1 0

CS Tan Co is a partnership registered in Singapore and an independent member firm of the Intemational Accounti ng and Audit

Network a French entity.

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4

Note 2012 2011

$ $

Assets

Non current assets

Property, plant and equipment 3 10,045 10,802

Investments 4 1,030,000 1,030,000

1,040,045 1,040,802

Current assetsReceivables 5 33,688 86,330

Fixed deposits with financial institutions 6 2,300,000 3,400,000

Bank balances 7 1,498,928 309,897

3,832,616 3,796,227

Total assets 4,872,661 4,837,029

Funds and liabilities

FundsAccumulated general fund 4,471,252 4,447,287

Current liabilities

Payables 8 401,409 389,742

Total funds and liabilities 4,872,661 4,837,029

The annexed notes to the financial statements form an integral part of and should be read in conjunction with these

financial statements.

PROFESSIONAL ENGINEERS BOARD, SINGAPORE

Statement of Financial Position at 31 December 2012


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Note 2012 2011

$ $

Income

Renewal fees 326,800 333,700

Registration fees 29,450 26,400

Company licensing fees 46,950 44,510

Examination fees 145,650 131,775

Fundamentals of Engineering Examination fees 174,350 161,750

Interest income 9 72,235 62,391

Other income 28,175 20,767

823,610 781,293

Expenditure

Staff expenses 10 226,291 207,693

Depreciation 2,201 1,720

Honorarium to Board Members 38,250 30,600

Operating leases 91,177 85,267

International liaison, accreditation and overseas visits 46,679 29,938

Examination expenses 128,615 112,869Annual and appreciation dinner 11,415 10,938

Scholarships 69,000 69,000

Computer services and software 85,852 83,726

Audit fee 4,400 4,400

Certificate presentation ceremony 38,435 22,182

Other expenses 52,421 71,956

794,736 730,289

Surplus for year 28,874 51,004




Income Statement

for the financial year ended 31 December 2012


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Statement of Comprehensive Income


2012 2011

$ $

Surplus and total comprehensive income 28,874 51,004




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$

At 1.1.2011 4,404,953

Total comprehensive income for the year 51,004

Transactions with Government of Singapore

Contribution to Singapore Government Consolidated Fund (Note 12) (8,670)

At 31.12.2011 4,447,287

Total comprehensive income for the year 28,874

Transactions with Government of Singapore

Contribution to Singapore Government Consolidated Fund (note 12) (4,909)

At 31.12.2012 4,471,252




Statement of Changes in Funds


Accumulated

General Fund


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Statement of Cash Flows

2012 2011

$ $

Operating activities

Surplus for year 28,874 51,004

Adjustments for:

Depreciation 2,201 1,720

Interest income (72,235) (62,391)

Operating surplus before working capital changes (41,160) (9,667)

Receivables 1,152,642 5,017Payables 15,428 (51,501)

Cash flows from operating activities 1,126,910 (56,151)

Investing activities

Acquisitions of property, plant and equipment (1,444) (855)

Interest income received 72,235 62,391

Acquisitions of investments - (1,030,000)

Cash flows from investing activities 70,791 (968,464)

Financing activitiesContribution to Consolidated Fund (8,670) (1,823)

Cash flows from financing activities (8,670) (1,823)

Net change in cash and cash equivalents 1,189,031 (1,026,438)

Cash and cash equivalents at beginning of year 309,897 1,336,335

Cash and cash equivalents at end of year 1,498,928 309,897





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Notes to the Financial Statements 31 December 2012

These notes form an integral part of and should be read in conjunction with the accompanyingfinancial statements.

1 General

The Professional Engineers Board was established in 1970 under the Professional EngineersAct, Chapter 253. The Board is domiciled in Singapore with its registered office and

principal place of operation at 5 Maxwell Road, 1st storey Tower Block, MND Complex,

Singapore 069110.

The principal activities of the Board are those of administering the Boards membership,Register of Professional Engineers and licensing of professional engineering corporations.

There have been no significant changes in such activities during the financial year.

The financial statements were authorised for issue by the Board on the date shown on theStatement by the Board.

2 Significant accounting policies

(a) Statement of compliance

These financial statements have been prepared in accordance with the SingaporeFinancial Reporting Standards (FRS).

The preparation of financial statements in accordance with FRS requires the use ofestimates, assumptions and judgements that affect the reported amounts of assets andliabilities, and disclosures of contingent assets and liabilities (if any) at the date of thefinancial statements and the reported amounts of income and expenses during thefinancial period. These estimates, assumptions and judgements are continuallyevaluated and are based on historical experience and other factors, includingexpectations of future events that are believed to be reasonable under the circumstances.Where appropriate, the estimates, assumptions and judgements that have a significantrisk of causing a material adjustment to the carrying amounts of assets and liabilities

within the next financial period are discussed in the following significant accountingpolicies. Although these are based on the entitys best knowledge of current events and

actions, actual results may ultimately differ from these estimates, assumptions andjudgements.


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On 1 January 2012, the following relevant new and revised FRS and Interpretations toFRS (INT FRS) that are applicable in the current financial year were adopted:-

Revised FRS

FRS 12 Amendments to FRS 12-Deferred Tax: Recovery of Underlying Assets

The adoption of the above FRS and INT FRS did not result in significant changes tosignificant accounting policies and had no effect on the financial statements.

At the date of authorisation of the financial statements, the following are new andrevised FRS and INT FRS that have been issued (but yet to be effective) that arerelevant to the entity. These have not been applied to the financial statements and arenot anticipated to have any significant impact on the results of the entity.

Revised FRS Issued But Yet to be Effective

FRS 1 Amendments to FRS 1 Presentation of Items of Other ComprehensiveIncome

FRS 19 Employee Benefits

FRS 32 Offsetting of Financial Assets and Financial Liabilities

FRS 107 Offsetting of Financial Assets and Financial Liabilities

FRS 113 Fair Value Measurements

(b) Basis of accounting

The financial statements (expressed in Singapore dollars) are prepared in accordancewith the historical cost convention except as disclosed in the following accountingpolicies. The Singapore dollar is the entitys functional and presentation currency.Functional currency is the currency of the primary economic environment in which the

entity operates.

(c) Financial assets and liabilities (recognition and derecognition)

Financial assets and financial liabilities are recognised in the statement of financial

position when the entity becomes a party to the contractual provisions of theinstrument. Regular purchases and sales of financial assets are recognised on trade date(date on which the entity commits to purchase or sell the asset). Financial assets are

derecognised when the rights to receive cash flows from the financial assets haveexpired or have been transferred to the entity.
http://www.asc.gov.sg/frs/attachments/2011/FRS%2012%20amendment%20(7june2011)(rev).pdfhttp://www.asc.gov.sg/frs/attachments/2011/FRS%2012%20amendment%20(7june2011)(rev).pdfhttp://www.asc.gov.sg/frs/attachments/2011/FRS%2012%20amendment%20(7june2011)(rev).pdfhttp://www.asc.gov.sg/frs/attachments/2004/FRS_1_2005.pdfhttp://www.asc.gov.sg/frs/attachments/2004/FRS_1_2005.pdfhttp://www.asc.gov.sg/frs/attachments/2011/FRS%20113-Fair%20Value%20Measurements.pdfhttp://www.asc.gov.sg/frs/attachments/2011/FRS%20113-Fair%20Value%20Measurements.pdfhttp://www.asc.gov.sg/frs/attachments/2004/FRS_1_2005.pdfhttp://www.asc.gov.sg/frs/attachments/2004/FRS_1_2005.pdfhttp://www.asc.gov.sg/frs/attachments/2004/FRS_1_2005.pdfhttp://www.asc.gov.sg/frs/attachments/2011/Amendments%20to%20FRS%201%5b1%5d.pdfhttp://www.asc.gov.sg/frs/attachments/2011/Amendments%20to%20FRS%201%5b1%5d.pdfhttp://www.asc.gov.sg/frs/attachments/2011/FRS%2012%20amendment%20(7june2011)(rev).pdf


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(d) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation andimpairment losses. Except for freehold land which is not depreciated, depreciation is

calculated on the straight-line method (commencing from the dates these property, plantand equipment are first placed into productive use) so as to write off the cost of allproperty, plant and equipment over their estimated useful lives as follows:

Number of Years

Office furniture 10Office equipment 3 to 10Computers 1

Residual value, useful lives and depreciation method of property, plant and equipmentare reviewed at each statement of financial position date. The effects of any revision ofthe residual values and useful lives are included in the income statement in the financial

period in which the changes arise. Fully depreciated assets are retained in the financialstatements until they are no longer in use. Any gain or loss on disposal of property,plant and equipment is taken to the income statement.

The entity estimates the dates these property, plant and equipment are first placed intoproductive use and the period of their useful lives (period over which future economicbenefits are intended to derive from these property, plant and equipment).

(e) Investments

Investments (other than investments in subsidiaries, associates and joint ventures) areclassified as available-for-sale. Quoted and unquoted investments are stated at fair

value and cost less impairment losses respectively.

All purchases and sales of investments are recognised on trade date. Investments areinitially measured at cost, which is the fair value of the consideration given for them(inclusive of transaction costs). Subsequent to initial recognition, quoted investmentsare carried at fair value.

The fair values of quoted investments are estimated by reference to the current marketprice. Unquoted investments are measured at cost after ascertaining that it is notpracticable to determine the fair values because of the lack of quoted market prices andthe assumptions used on valuation models to value these investments cannot bereasonably determined and variability in the range of reasonable fair value estimates

derived from valuation techniques is significant.


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An impairment loss is recognised in income statement when there is objective evidencethat the asset is impaired, and is measured as the difference between the investmentscarrying amount and current market price (quoted investments) and the present value ofestimated future cash flows discounted at the effective interest rate computed at initial

recognition (unquoted investments). Impairment losses on quoted investments arereversed in subsequent periods when an increase in the investments recoverableamount can be related objectively to an event occurring after the impairment wasrecognised, subject to the restriction that the carrying amount of the investment at thedate the impairment is reversed shall not exceed what the amortised cost would have

been had the impairment not been recognised. Factors considered in assessing whetherinvestments are impaired include (but are not limited to) the duration and quantum ofimpairment, the financial health of and the near term business outlook of the investee

including factors such as industry and sector performance, changes in technology andoperational and financing cash flow. These assessments require exercise of significant

judgment.

Gains and losses on measurement to fair value of investments are recognised in the fair

value reserve and reversed to the income statement upon disposal of the investments.Impairment losses are charged to the income statement. Subsequent reversals ofimpairment losses on quoted equity investments and quoted debt investments arerecognised in the fair value reserve and income statement respectively. Impairmentlosses on unquoted investments stated at cost are not reversed. Exchange differences onthese investments are reported as part of the fair value gain or loss.

(f) Impairment of assets (excluding goodwill)

At each statement of financial position date, the entity reviews the carrying amounts ofits tangible and intangible assets to determine whether there is any indication that thoseassets have suffered an impairment loss. If any such indication exists, the recoverable

amount of the asset is estimated in order to determine the extent of the impairment loss(if any). Where it is not possible to estimate the recoverable amount of an individualasset, the entity estimates the recoverable amount of the cash-generating unit to whichthe asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. Inassessing value in use, the estimated future cash flows are discounted to their present

value using a pre-tax discount rate that reflects current market assessments of the timevalue of money and the risks specific to the asset. Assessing value in use requires anestimation of future cash flows expected to arise from the cash-generating unit(s) and asuitable discount rate in order to calculate present value. Significant judgement isexercised in the estimation of expected future cash flows and in the selection of a

suitable discount rate.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be lessthan its carrying amount, the carrying amount of the asset (cash-generating unit) isreduced to its recoverable amount. An impairment loss is recognised immediately in the

income statement, unless the relevant asset is carried at a revalued amount, in whichcase the impairment loss is treated as a revaluation decrease.


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Where an impairment loss subsequently reverses, the carrying amount of the asset(cash-generating unit) is increased to the revised estimate of its recoverable amount, butso that the increased carrying amount does not exceed the carrying amount that wouldhave been determined had no impairment loss been recognised for the asset (cash-

generating unit) in prior years. A reversal of an impairment loss is recognisedimmediately in the income statement, unless the relevant asset is carried at a revaluedamount, in which case the reversal of the impairment loss is treated as a revaluationincrease.

(g) Receivables

Receivables are recognised initially at fair value (inclusive of transaction costs) andsubsequently measured at amortised cost using the effective interest method lessallowance for impairment. An allowance for impairment is established when there isobjective evidence that not all amounts due will be collectible according to the originalterms of the receivable. The allowance amount is the difference between the carryingamount and the present value of estimated future cash flows discounted at the original

effective interest rate. Allowance for impairment is charged to the income statement.Receivables that are factored out (to banks and other financial institutions) withrecourse to the entity are not derecognised until the recourse period has expired and the

risks and rewards of the receivables have been fully transferred. The correspondingcash received from the financial institutions is recorded as borrowings.

In assessing for impairment (allowance for bad and doubtful receivables), the entityexercises its judgement in estimating collectibility based on ageing analysis of accounts

(where available), current credit worthiness and past collection history of these debtors.If the financial positions of these debtors were to deteriorate and result in impairment inthese debtors ability to make payments, additional allowances may be required.

(h) Payables and interest bearing loans

Payables are initially measured at fair value and subsequently measured at amortisedcost using the effective interest method.

Interest bearing loans are recognised initially at fair value net of transaction costsincurred. Borrowings are subsequently stated at amortised cost. Any difference betweenthe proceeds (net of transaction costs) and the redemption value is taken to the incomestatement over the period of the borrowings using the effective interest method.

(i) Provisions

Provisions are recognised when the entity has present legal or constructive obligationsas a result of past events and it is probable that the entity will be required to settle thatobligation. Provisions are measured at the present value of the expenditure expected tobe required to settle the obligation using a pre-tax discount rate that reflects the currentmarket assessment of the time value of money and the risks specific to the obligation.Any increase in provision due to passage of time is recognised in income statement asfinance expense. Changes in the estimated timing or amount of the expenditure ordiscount rate are recognised in the income statement in the period the changes inestimates arise.


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The entity exercises judgement in estimating the amount of future expenditure anddiscount rate that reflects the time value of money. If actual expenditure and actual timevalue of money exceeds these estimates, present value of current obligations mayexceed provision amounts at statement of financial position date.

(j) Determination of fair value

The fair values of quoted financial assets and financial liabilities are based on currentmarket bid prices and asking prices respectively. If the market for a financial

asset/liability is not active, fair value is established by using valuation techniques.These include the use of recent arms length transactions, reference to other instrumentsthat are substantially the same, discounted cash flow analysis, and option pricingmodels refined to reflect the issuers specific circumstances.

Fair values of financial assets and financial liabilities (excluding finance leases)approximate their carrying amounts either due to their short term nature or that they arefloating rate instruments that are repriced to market interest rates on or near the

statement of financial position date. Fair values of interest bearing finance leases areestimated by discounting future contractual cash flows at current market interest rate forsimilar financial instruments. Fair values of foreign currency forward contracts aredetermined using actively quoted forward exchange rates. Fair values of interest rateswaps are estimated as the present value of the estimated future cash flows discountedat actively quoted interest rates.

Financial instruments (in statement of financial position) remeasured to fair value areclassified using a fair value hierarchy that reflects the significance of the inputs used inmaking the fair value measurements. The fair value hierarchy is classified into thefollowing levels:

(i) Level 1 - quoted prices (unadjusted) in active markets for identical assets orliabilities;

(ii) Level 2 - inputs other than quoted prices included within Level 1 that areobservable for the asset or liability, either directly (is as prices) or indirectly (iederived from prices); and

(iii) Level 3 - inputs for the asset or liability that are not based on observable marketdata (unobservable inputs).

(k) Employee entitlements to annual leave

Employee entitlements to annual leave are recognised when they accrue to employees.An allowance is made for the estimated liability for annual leave as a result of services

rendered by employees up to the statement of financial position date.


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(l) Revenue recognition

Revenue comprises the fair value of consideration received (or receivable) for sale ofgoods and rendering of services. Revenue is recognised when the amount of revenue

(and its corresponding expenses) can be measured reliably and when collectibility ofthe related receivables is reasonably assured. Revenue is recognised net of applicablerebates and discounts in accordance with the following policies:

(i) Registration fee income is recognised as income only when the applicant is

registered as a member with the entity.

(ii) Renewal and licensing fee income is recognised in the period in which theservices are rendered.

(iii) Examination and other fee income is recognised in the period in which theservices are rendered.

(iv) Interest income from fixed deposits, bank balances and bonds are recognised onaccrual basis.

(m) Key management staff

Key management staff are those persons having the authority and responsibility forplanning, directing and controlling activities of the entity. The board members areconsidered key management staff of the entity.

(n) Defined contribution plan

Contributions to the Central Provident Fund are recognised as an expense when

incurred.

(o) Operating leases (lessee)

Leases where the lessor effectively retains substantially all the risks and benefits ofownership of the leased assets are classified as operating leases. Operating leases arerecognised as an expense in the income statement on a straight line basis over the leaseterm. Contingent rents are recognised as an expense in the income statement in theperiod in which they are incurred. When an operating lease is terminated before theexpiry of the lease period, any payment required to be made to the lessor by way ofpenalty is recognised as an expense in the period in which the termination occurs.

(p) Foreign currencies

Transactions in foreign currencies are measured and recorded in Singapore dollarsusing the prevailing exchange rates at the date of transaction. At each statement offinancial position date, monetary balances denominated in foreign currencies are

translated at prevailing exchange rates at the statement of financial position date. Allexchange differences are taken to the income statement.


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(q) Cash and cash equivalents

Cash consists of cash on hand and cash with banks or financial institutions, includingfixed deposits. Cash equivalents are short-term, highly liquid investments that are

readily convertible to known amounts of cash and that are subject to insignificant riskof changes in value.

(r) Related parties

Parties are considered to be related if the entity has the ability, directly or indirectly, tocontrol the party or exercise significant influence over the party in making financial andoperating decisions or vice versa or the entity and the related party are subject to

common control or common significant influence. Related parties may be individuals orcorporations.

(s) Contributions to Consolidated Fund

The Statutory Corporations (Contributions to Consolidated Fund) Act, Chapter 319Aand Ministry of Finance mandates all Statutory Corporations contribute a percentage ofits annual surplus income to the Singapore Government Consolidated Fund. Suchcontributions are accrued for in the year in which the corresponding surplus incomearises.

3 Property, plant and equipment

OfficeFurniture

OfficeEquipment Computers Total

$ $ $ $

CostAt 1.1.2011 3,688 14,609 88,810 107,107

Additions - 855 - 855

Disposals - - (43,127) (43,127)

At 31.12.2011 3,688 15,464 45,683 64,835

Additions - 1,444 - 1,444

Disposals - - - -

At 31.12.2012 3,688 16,908 45,683 66,279

Accumulated depreciation

At 1.1.2011 1,313 5,318 88,809 95,440

Charge to income statement 369 1,351 - 1,720

Disposals - - (43,127) (43,127)

At 31.12.2011 1,682 6,669 45,682 54,033

Charge to income statement 369 1,832 - 2,201

Disposals - - - -

At 31.12.2012 2,051 8,501 45,682 56,234

Carrying amount

At 31.12.2011 2,006 8,795 1 10,802

At 31.12.2012 1,637 8,407 1 10,045


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4 Investments

2012 2011$ $

Available-for-sale investments

Unquoted debt securities at cost 1,030,000 1,030,000

Debt securities bear fixed rate interest at 3.1% (2011: 3.1%) per annum and mature in year2021.

5 Receivables

2012 2011$ $

Interest income receivable 26,819 65,355Other receivable* 6,869 20,975

33,688 86,330

* This amount is unsecured, interest free and is repayable on demand. The fair value of thisamount approximates its carrying amount due to its short term nature.

6 Fixed deposits with financial institutions

2012 2011$ $

Maturing within:- 4 to 12 months from year end 2,300,000 3,400,000

2,300,000 3,400,000

The fixed deposits bear fixed rate interest at 1.2% (2011: 1.1%) per annum and mature on

varying dates within 12 (2011: 12) months from year end.

7 Bank balances

Bank balances bear floating rate interest at 0.1% (2011: 0.1%) per annum.


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8 Payables

2012 2011$ $

Accrued operating expenses 23,850 23,872Accrued contribution to Consolidated Fund 4,909 8,670Registration fees received in advance 12,500 11,350Renewal fees received in advance 313,900 307,850

Company licensing fees received in advance 27,250 12,100Examination fees received in advance 12,150 12,600Other advance payments received 6,850 13,300

401,409 389,742

9 Interest income

2012 2011$ $

Interest income from:- fixed deposits 40,174 41,630- bank balances 661 804- debt securities 31,400 19,957

72,235 62,391

10 Staff expenses

2012 2011$ $

Salaries and bonuses 195,653 180,829Central Provident Fund contributions in respect of staffsalaries and bonuses

30,638 26,864

226,291 207,693

11 Taxation

The Board is exempted from income tax under section 13(1)(e) of the Income Tax Act,

Chapter 134.


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12 Contribution to Singapore Government Consolidated Fund

The Statutory Corporations (Contributions to Consolidated Fund) Act, Chapter 319Arequires that the Board contribute part of its annual excess of income over expenditure to a

Consolidated Fund (Fund). This Fund belongs to Singapore and is administered by theGovernment in accordance with the Constitution of The Republic of Singapore.

2012 2011$ $

Contribution to Consolidated Fund at 17% (2011: 17%) 4,909 8,670

of net surplus income for the financial year

13 Operating lease commitments

At the year end, the Board was committed to making the following payments in respect of

non-cancellable operating leases with a term of more than one year:

Leases which expire:

2012 2011$ $

Within 1 year 91,000 91,000Within 2 to 5 years 53,000 144,000

The operating leases do not have any renewal terms and are not subject to escalation clauses.

14 Financial risk management

The Boards activities expose it to a variety of financial risks. The Boards risk managementobjectives seek to minimise the potential adverse effects of these risks on its financialactivities. The Boards risk management objectives, policies and processes remainunchanged from previous year and are outlined below.

Funds management

The Board defines funds by deducting total liabilities from total assets. The Boardsobjectives when managing funds are to achieve and maintain optimal fund structure in thefurtherance of its objectives. To achieve this, the Board mainly receives fees from itsmembers to fund its activities. The Board is not subject to any externally imposed fundrequirements.

Interest rate risk

Interest rate risk is the risk that changes in interest rates will affect the Boards income.

The Board is exposed to interest rate risk through its debt securities investments, fixeddeposits and bank balances. The Board does not have risk management objectives, policiesand procedures with regard to interest rate risk.


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A 1% increase in interest rate at the statement of financial position date wouldincrease/(decrease) funds and income or expenditure by the following amounts (assuming allother variables remain constant):

2012 2011

$ $

Funds 44,000 44,000

Income or expenditure 44,000 44,000

A 1% decrease in interest rate would have the equal but opposite effect on the amountsshown above (assuming all other variables remain constant).

Foreign currency risk

Foreign currency risk is the risk that foreign currency exchange rates will affect the Boards

income.

The Board is not exposed to any significant foreign currency risk and has no risk

management objectives, policies and procedures with regard to this risk.

Credit risk

Credit risk is the potential risk of financial loss resulting from failure of debtors or other

parties to settle their financial and contractual obligations to the Board as and when they falldue.

The maximum exposure to credit risk is the carrying amount of certain financial assets which

are mainly receivables, deposits and cash amounts. The Board does not hold any collateral orcredit enhancements in respect of these receivables.

The Boards objective with regard to credit risk is the preservation of cash amounts placedwith financial institutions. Credit risk arising from cash is minimised by placing cashamounts (including fixed deposits) with reputable financial institutions with high credit

ratings assigned by international credit rating agencies. Except as disclosed above, there areno receivables or cash amounts that are past due or impaired. Payables are generally duewithin 30 days.

Market price risk

Market price risk is the risk that changes in market values of investments will affect thevalue of the Boards holdings of financial instruments or income.

The Board is not exposed to any significant market price risk and has no risk management

objectives, policies and procedures with regard to this risk.

Liquidity risk

Liquidity risk is the risk that the Board will not be able to meet its financial obligations as

they fall due.


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The Boards objective with regard to liquidity risk is to maintain sufficient cash (andequivalents) to fund its operations. The Board ensures it has adequate internally generatedcash to finance capital expenditure and working capital.

Fair values

Financial assets comprise investments, receivables, deposits and cash amounts. Unquotedinvestments are measured based on Level 3 FRS 107 measurement hierarchy. Receivables,deposits and cash amounts are categorised as loans and receivables which are financial assets

with fixed payments that are not quoted in an active market.

Financial liabilities comprise payables and deposits received. Financial liabilities aremeasured at amortised cost.

The Boards financial assets and financial liabilities approximate to or are the same as theirfair values except for unquoted investments. Unquoted investments are measured at costafter ascertaining that it is not practicable to determine the fair values because of (i) the lack

of quoted market prices; (ii) the assumptions used on valuation models to value theseinvestments cannot be reasonably determined; and (iii) variability in the range of reasonable

fair value estimates derived from valuation techniques is significant. These unquotedinvestments represent debt securities issued by a public sector institution in Singapore that isnot quoted on any market. The Board does not intend to dispose of these investments in theforeseeable future.

Movement of unquoted investments during the year:

2012 2011$ $

At beginning of year - -Acquisitions during the year - 1,030,000

At end of year - 1,030,000

peb annual report 2012

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