ASEAN PROMOTION CENTRE ON
TRADE, INVESTMENT AND TOURISM
Financial Statements for theYear Ended March 31, 2023

ASEAN PROMOTION CENTRE ON TRADE, INVESTMENT AND TOURISM
Balance Sheet
March 31, 2023

ASSETS

Japanese Yen

U.S. Dollars(Note 2)

LIABILITIES AND FUND BALANCE

Japanese Yen

U.S. Dollars(Note 2)CURRENT ASSETS:
Cash and bank deposits
Prepaid expenses
Accounts receivable¥ 234,489,531
5,082,236
456,076$ 1,756,081
38,061
3,416

CURRENT LIABILITIES:
Accounts payable
Short-term bank loan (Notes 6.a and 7.b)Other current liabilities¥ 60,317,872
30,106,115
1,158,890$ 451,718
225,4638,679

240,027,843

1,797,557

Total current liabilities

91,582,877

685,860

LONG-TERM LIABILITIES:Asset retirement obligations (Notes 3.d and 4)
Accrued severance benefits (Note 3.c)

19,675,836
60,224,063

147,351
451,015

79,899,899

598,367

26,232,685
51,626,773
370,000

196,455
386,631
2,771

19,751,702(19,675,836)
66,187,748

147,920(147,351)
495,677

144,493,072

1,082,102¥ 315,975,848$ 2,366,329

Total current assets
PROPERTY:
Property, plant and equipment:
Property, plant and equipment (Notes 3.a, 3.d and 4)
Accumulated depreciation
Net property, plant and equipment
Intangible assets—software (Note 3.a)71,611,217(63,438,549)
8,172,668
11,579,034

536,293(475,088)
61,20586,71519,751,702

147,920

Total long-term liabilities
COMMITMENTS (Note 6)

Total property
INVESTMENTS AND OTHER ASSETS:
Lease deposits (Notes 6.a and 7.b)
Deposits
Long-term prepaid expenses
Total investments and other assets

55,812,000
310,000
74,303417,973
2,322556

56,196,303

420,852

FUND BALANCE (Note 7.a):Appropriated for repayment of bank loan (Note 7.b)Appropriated for special fund (Note 7.a(2))
Appropriated for earmarked expenses (Notes 6.b and 7.c)Appropriated for property, plant and equipment and software(Notes 3.a, 3.d and 4)
Appropriated for asset retirement obligations (Notes 3.d and 4)
Unappropriated (Note 7.a(4))
Total fund balance

TOTAL¥ 315,975,848

TOTAL$ 2,366,329

See notes to financial statements.

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ASEAN PROMOTION CENTRE ON TRADE, INVESTMENT AND TOURISM
Statement of Revenues, Expenses, and Changes in Fund BalanceYear Ended March 31, 2023

Japanese Yen

U.S. Dollars(Note 2)

¥ 499,669,000
2,380$ 3,741,998
18

499,671,380

3,742,016

30,829,795
41,505,518
31,907,000
23,990,907
35,700,129
35,575,521
801,135
6,073,550
392,891

230,883
310,833
238,950
179,667
267,357
266,423
6,000
45,485
2,942

2,703,199
47,785,014
12,825,833
196,237,910
12,384,532
34,334,415
2,171,400
53,380793,464

20,244357,860
96,052
1,469,617
92,747257,129
16,262400
5,942

516,065,593

3,864,791

EXCESS OF REVENUES OVER EXPENSES(16,394,213)(122,776)

FUND BALANCE, BEGINNING OF YEAR

160,887,285

1,204,877¥ 144,493,072$ 1,082,102

REVENUES:
Contributions from Member States (Note 5)
Other income
Total revenues
EXPENSES:
Projects:
Trade Promotion
Investment Promotion
Sustainable and Responsible Tourism
Expansion of People-to-People Exchanges
Communication, Social Mobilization and Partnership
ASEAN National Activities
Depreciation expenses (Note 3.a)
Amortization expenses (Note 3.a)Loss on disposal of noncurrent assets
Administration:
Meetings of Council and Executive Board
Office maintenance
Office operation
Staff expenses
Provision for accrued severance benefits (Note 3.c)Rent for Permanent Exhibition Hall (Note 6.a)Depreciation expenses (Notes 3.a and 3.d)
Amortization expenses (Note 3.a)Loss on disposal of noncurrent assets
Total expenses

FUND BALANCE, END OF YEAR

See notes to financial statements.

-2-ASEAN PROMOTION CENTRE ON TRADE, INVESTMENT AND TOURISM
Statement of Cash Flows
Year Ended March 31, 2023

Japanese Yen

U.S. Dollars(Note 2)

¥ 499,669,000
2,380(499,516,599)(643,572)$ 3,741,998
18(3,740,857)(4,820)(488,791)(3,661)INVESTING ACTIVITIES:Acquisition of property, plant and equipment and software
Proceed from refund of lease deposit
Cash paid for lease deposit(6,656,728)
1,762,800(260,000)(49,852)
13,202(1,947)

Net cash used in investing activities(5,153,928)(38,598)(5,638,000)(42,223)(5,638,000)(42,223)

NET DECREASE IN CASH AND BANK DEPOSITS(11,280,719)(84,481)

CASH AND BANK DEPOSITS, BEGINNING OF YEAR

245,770,250

1,840,562¥ 234,489,531$ 1,756,081

OPERATING ACTIVITIES:Cash received from Member States
Cash received from other operating activities
Cash paid to suppliers and staff
Interest paid
Net cash used in operating activities

FINANCING ACTIVITIES:Cash paid to bank for settlement of short-term bank loan
Net cash used in financing activities

CASH AND BANK DEPOSITS, END OF YEAR

See notes to financial statements.

-3-ASEAN PROMOTION CENTRE ON TRADE, INVESTMENT AND TOURISM
Notes to Financial Statements
Year Ended March 31, 2023

1.

ORGANIZATIONASEAN PROMOTION CENTRE ON TRADE, INVESTMENT AND TOURISM (the Centre) wasestablished on May 25, 1981, as an unincorporated, nonprofit organization under the Agreement
between the Governments of Japan and five ASEAN Member States. This Agreement was extended
to May 24, 2027, at the 41st Annual Meeting of the Council held in Tokyo in March 2022. The Centre's
main purpose is to promote exports from the ASEAN Member States to Japan; to accelerate the flowof investment between Japan and the ASEAN Member States including the transfer of skill andtechnology; to vitalize tourist traffic between Japan and the ASEAN Member States; and to expand
exchanges of persons through close cooperation between Japan and the ASEAN Member States.
There are 11 Member States as of March 31, 2023.

2.

BASIS OF PRESENTING FINANCIAL STATEMENTS AND FINANCIAL REGULATIONS
The accompanying financial statements have been prepared in accordance with Financial Regulations
and Basis of Preparation of Financial Statements as described by the Centre.
Financial Regulations and Basis of Preparation of Financial Statements are based on generally
accepted accounting principles in Japan except for fund balance within the balance sheet andstatement of cash flows.
Fund balance is prepared based on III. Financial Regulations in the Rules and Regulations andIII. Financial Rules and Procedures in the Staff Rules, Internal Rules and Guidelines, and Internship
Rules and Regulations established by the Centre.
Statement of cash flows is prepared in accordance with Regulation on Terminology, Forms, andPreparation Methods of Financial Statement (Zaimushohyotou Kisoku).
The financial statements are stated in Japanese yen, the currency of the country in which the Centreoperates. The translations of Japanese yen amounts into U.S. dollar amounts are included solely forthe convenience of readers and have been made at the rate of ¥133.53 to $1, the rate of exchange at
March 31, 2023. Such translations should not be construed as representations that the Japanese yenamounts could be converted into U.S. dollars at that or any other rate.

3.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Property, Plant and Equipment and Software—Property, plant and equipment and software,
limited to those with individual amounts of ¥200,000 ($1,498) or more, are stated at cost.
Depreciation of property, plant and equipment is computed generally by the declining-balancemethod at rates based on the estimated useful lives of the assets. The range of useful lives isprincipally from 2 to 20 years. Amortization of software is computed by the straight-line method atrates based on estimated useful lives from 4 to 5 years.

b.

Long-Lived Assets—The Centre reviews its long-lived assets for impairment whenever events orchanges in circumstances indicate the carrying amount of an asset or asset group may not berecoverable. The impairment loss is measured as the amount by which the carrying amount of theasset exceeds its recoverable amount, which is the net selling price at disposition.

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c.

Severance Benefits—Staff members of the Centre are entitled to receive a lump-sum payment
upon termination of their employment either by resignation or retirement. The amount of benefits
for a permanent appointee is determined based on the rate of one-month base salary at the timeof resignation or retirement for every completed year of service. For a fixed-term appointee, it isdetermined at the rate of monthly base salary for a year of service computed on a pro-rata,
monthly basis effective at the time of termination of his/her employment in accordance with the'RULES AND REGULATIONS.' The Centre has recorded a 100 percent liability for the amountthat the Centre would have to pay for all the staff members if they resign at the balance sheet
date. This is permitted under generally accepted accounting principles in Japan for certain
companies that have less than 300 staff members.

d.

Asset Retirement Obligation—An asset retirement obligation is recorded for a legal obligation
imposed either by law or contract that results from the acquisition, construction, development andthe normal operation of a tangible fixed asset and is associated with the retirement of such asset.
The asset retirement obligation is recognized as the sum of the discounted cash flows required forthe future asset retirement and is recorded in the period in which the obligation is incurred if areasonable estimate can be made. If a reasonable estimate of the asset retirement obligation
cannot be made in the period the asset retirement obligation is incurred, the liability should berecognized when a reasonable estimate of asset retirement obligation can be made. Upon initialrecognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized
by increasing the carrying amount of the related fixed asset by the amount of the liability. The
asset retirement cost is subsequently allocated to expense through depreciation over theremaining useful life of the related asset. Over time, the liability is accreted to its present value
each period. Any subsequent revisions to the timing or the amount of the original estimate ofundiscounted cash flows are reflected as an increase or a decrease in the carrying amount of theliability and the capitalized amount of the related asset retirement cost.

ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the year ended March 31, 2023, were as follows:

5.

Japanese Yen

U.S. Dollars

Balance at beginning of year
Reconciliation associated with passage of time

¥ 19,327,933
347,903$ 144,746
2,605

Balance at end of year

¥ 19,675,836$ 147,351

CONTRIBUTIONS FROM MEMBER STATESThe contributions from Member States are recognized as revenues in the year when suchcontributions become due and payable.
The members of the Centre made the following contributions for the year ended March 31, 2023:

Obligatory contributions:Japan
ASEAN Member States
Rent for Permanent Exhibition Hall
Voluntary contributions:Japan
Total-5-

Japanese YenU.S. Dollars¥ 345,885,000
49,412,000
34,372,000$ 2,590,317
370,044
257,41070,000,000

524,227¥ 499,669,000$ 3,741,998

Article X 2 of the Amendments to the Agreement Establishing the Centre which was amended by theCouncil Decision on November 20, 2007, states that, "Except for the rent of the permanent ASEAN
Trade, Investment and Tourism Exhibition Hall, which shall be borne by Japan, the annual budget of
the Centre shall be met in the following proportion: Japan: 87.5 percent, the ASEAN Member States:
12.5 percent." This annual budget is now referred to as obligatory contributions.
In addition, the Centre also receives voluntary contributions from Japan, which started in 1988 to meet
its increasing financial requirements for the implementation of the Centre's new programs and projects.
6.

COMMITMENTSa.

Lease Commitments and Loan from Bank
The aggregate lease deposits at March 31, 2023 of ¥55,104,000 ($412,671) for the PermanentExhibition Hall/Secretariat Office including the Information Corner in Onarimon, and ¥708,000($5,302) for housing for three members of ASEAN staff.
Total monthly rents from February 1, 2023 through January 31, 2025 for the Permanent Exhibition
Hall/Secretariat Office, Information Corner and the signboard fee in Onarimon of ¥5,488,000($41,099), and ¥60,000 ($449), respectively, are ¥5,548,000 ($41,549).
The amount of ¥30,106,115 ($225,463) for the lease deposit was financed by a floating rate bankloan based on bank base rate plus 1.775 percent per annum on March 20, 2023. The interest rateis subject to review monthly. The principal amount is payable on March 19, 2024. The interest
expenses were included under "Rent for Permanent Exhibition Hall."b.

Contractual Purchase Obligations
The Centre has contractual purchase obligations related to the annual budget for the fiscal year
ended March 31, 2023. The amount of the obligations is ¥370,000 ($2,771) which consists of¥10,000 ($75) for trade promotion activities, ¥45,000 ($337) for investment promotion activities,¥5,000 ($37) for communication, social mobilization and partnership related activities, ¥295,000($2,209) for ASEAN national activities and ¥15,000 ($112) for administrative related activities atMarch 31, 2023.

7.

FUND BALANCEa.

Classification of Fund Balance
Fund balance consists of the following:(1) Appropriated for repayment of bank loan
(2) Appropriated for special fund: Remaining balance on the previous year's budgetaryaccounting(3) The amounts of adjustment items from cash basis accounting to accrual accounting:Appropriated for earmarked expenses
Appropriated for property, plant and equipment and software
Appropriated for asset retirement obligations(4) Unappropriated: Remaining balance on the current year's budgetary accounting-6-b.

Appropriated for Repayment of Bank Loan
The amount of ¥26,232,685 ($196,455) is the partial repayment on the bank loan for the leasedeposits of the Permanent Exhibition Hall/Secretariat Office including the Information Corner inOnarimon.

c.

Appropriated for Earmarked Expenses
The amount of earmarked expenses, which consists of outstanding purchase orders and othercommitments for materials and services not received as of March 31, 2023, was not recorded as"Accounts payable" in the balance sheet and "Expenses" in the statement of revenues, expenses,and changes in fund balance in accordance with generally accepted accounting principles inJapan.
The amount of ¥370,000 ($2,771) was appropriated for contractual purchase obligations.

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