Page 133 - TGIA_AnnualReport2010

The General Insurance Association
Note to Financial Statement

(Translation Only)

As at December 31, 2010 and 2009

1. General Information
The General Insurance Association’s objectives are to promote general insurance business, to coordinate with
the Office of Insurance Commission, the Ministry of Finance, to support the operation of the insurance institute, to
conduct public relations activities to promote the business and to create public awareness and fairness for all and to
serve as a non-profit organization.

GIA was established and located at the registered address at 223 Soi Ruamruedee, Wireless Road, Lumpini,
Pathumwan, Bangkok.

GIA has 68 general insurance companies as members

2. Basis of Financial Statements Preparation
This financial statement is prepared in compliance with the generally accepted accounting principles under the
Accounting Act, B.E. 2543 (2001) and accounting standards, prescribed in the Accounting Profession Act, B.E. 2547
(2004), except certain accounting standards whose enforcement are exempted on businesses which are not public
companies.

3. Summary of Significant Accounting Policies:
Cash and Deposit at Financial Institutions:
Cash and deposit at financial institutions means cash and bank deposits whose period of payback is not longer
than 3 months after the acquired date and without a limit on withdrawal.
Deposit at financial institutions with limitation on use is shown separately in “Deposit with Guaranteeing
Obligations” under other non-current assets in the balance sheet.

Revenue and Expense Recognition:
Revenue and expense are recognized on accrual basis, except the interest which is recognized on a cash
basis.

Depreciation
GIA calculated depreciation value of fixed assets by straight-line method according to useful lives of the assets
approximated at 5 to 10 years.

4. Cash and Deposits at Financial Institutions:
Baht
2010 2009

Cash 31,972.50 39,685.00
Current Account 2,613,384.44 1,872,142.29

Saving Account 3,536,007.53 73,354,881.64
3 months fixed Deposit at bank 11,000,000.00 21,000,000.00

Total 17,181,364.47 96,266,708.93

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