Hong Kong Regulations

MANDATORY PROVIDENT FUND SCHEMES (GENERAL) REGULATION - SECT 81

Approved trustee to prepare financial statements

(1) The approved trustee of a registered scheme must, before the deadline
after a financial period of the scheme, cause to be made out a balance sheet
as at the last day of the period that gives a true and fair view of the
financial position of the scheme on that day. The balance sheet must specify
the assets and liabilities of the scheme on that day. Obligations in respect
of benefits that will become payable to scheme members after that day are not
to be regarded as liabilities for that purpose.

(2) The trustee must also, before that deadline, cause to be made out a
statement of account for the relevant financial period that gives a true and
fair view of the scheme's financial transactions for that period. The
statement must specify-

   (a)  the fees for administrative expenses deducted or deductible by the
        trustee from scheme members' accounts under this Regulation; and

   (b)  the contributions and contribution surcharge (if any) paid and payable
        by, and recovered from, scheme members and (where appropriate) their
        employers; and

   (c)  the total returns derived from investing the funds of the  scheme
        (taking into account any capital appreciation and depreciation); and

   (d)  the total amount of accrued benefits that were paid, and of accrued
        benefits that became payable but were not paid, to or in respect of
        scheme members; and

   (e)  the amount of accrued benefits transferred to and from the  scheme,
        during the financial period.

(3) Before preparing the relevant financial statements, the trustee must take
reasonable steps-

   (a)  to recover all outstanding debts in relation to the scheme; and

   (b)  to cause all known bad debts relating to the scheme to be written off
        and adequate provision to be made for doubtful debts.

(4) If the financial statements relating to a registered scheme made out in
accordance with this section would not otherwise give a true and fair view of
the financial position and transactions of the scheme, the trustee must add
such information and explanations as will give a true and fair view of the
financial position and transactions.

(5) The trustee must ensure that a statement of the accounting policies
followed in preparing the financial statements is included in or attached to
the statements.