The seated Buddha, laughing monk, is based off a Chinese Zen monk who lived in the tenth century; a benevolent nature and easy contentment earned him a place in Buddhist culture.
A protruding pot-belly stomach symbolizes fortune and plenitude, the jolly smile, happiness, large ears indicate wisdom and compassion, the bowl is the renunciation of material possessions, living with the bare essentials, and the ruyi scepter manifests ones desires at will.