Page 134 - TGIA_AnnualReport2014

3.3 Equipment and Vehicle

Equipment and Vehicle have been recognized at the beginning base on cost. The value of equipment
and vehicle present on the cost less accumulated depreciation.
TGIA calculated depreciation value of fixed assets by straight-line method according to the useful
lives of the assets as follow:-

Office Equipment 5 years
Vehicle 5 years

TGIA has always revised the residual value, the useful lives of the assets and the calculation of
depreciation. In case there is an indicator shows that value of equipment and vehicle is permanently re-
duced and the book value is higher than the sales value less cost of sales, the book value will be adjusted
to equal the sales value less cost of sales immediately and recognize the deficit under the statement of
income higher than expenses.

The cost of repair and maintenance is recognized under the statement of income higher than
expenses in the year of such occurrence. The material cost of improvement will be included under the
book value of assets when the economic value in the future is most likely higher than the standard of the
useful of that assets when acquired. This material cost of improvement will be depreciated throughout the
residual useful lives of that assets.

Profit or loss from the sales of equipment and vehicle is based on the book value and included in the
calculation of operations.

3.4 Employees Benefits
Short-term benefits of employees

The Association recognizes salary, wages, bonus and contribution to the social welfare fund as the
expense when the transaction occurs.

Post Employment Benefits
Contribution Plan:

TGIA and employees jointly set up a providence fund from monthly contribution from employees and
TGIA. The assets of the providence fund are separated from the assets of TGIA and the contribution of
TGIA is recorded as expense on the year that the transaction occurred.

Post Employment Benefit Plan:
The TGIA has an obligation to pay compensation to the employees if their employments are termi-

nated according to the labor law. This compensation is a post employment benefit plan of employees.
TGIA’s liabilities under post employment benefits are calculated by a projected unit credit method by
independent expert who assesses such obligations on actuarial basis.

The actuarial gains and losses projection for post employment benefit of employees is recognized
immediately in the incomes higher than expenses account.

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