2.2
Income Recognition
2.2.1 Grants Received
Income from grants is recognised on a receipt basis.
2.2.2 Interest Income
Interest Income is accrued on a time basis, by reference to the principal outstanding
and effective interest rate applicable.
2.3
Financial Instruments
2.3.1 Accounts Receivable
Accounts receivable are measured at amortised cost less provision for impairment
loss.
2.3.2 Accounts Payable
Accounts payable are measured at amortised cost
2.4
Cash and Cash Equivalents
For the purpose of the cash flow statement, cash ans cash equivalents comprise of
bank balances and amounts due from and to other banks.
2.5
Vehicles and Equipment
Vehicles and Equipment are initially measured at cost. Cost includes expenditure
that is directly attributable to the acquisition of the asset. Subsequent costs are
included in the asset’s carrying amounts or recognised as separate assets, as
appropriate, only when it is probable that future economic benefits associated with
the items will flow to the entity and the costs can be measured reliably. All other
repairs and maintenance costs are charged to the statement of income or
expenditure during the period in which they are incurred.
Subsequent to initial measurement, vehicles and equipment is measured at cost less
accumulated depreciation and accumulated impairment losses. Their useful lives
and residual values are assessed annually. Annual depreciation is charged
proportionately over the remaining useful life of an asset where its carrying amount
is higher than its residual value. If the carrying amount is lower than the residual
value, no depreciation is charged. The Forum acquires its assets with the intention to
use them for their entire useful lives. Hence their residual values were assessed as
US$ nil.
48
ZIMBABWE HUMAN RIGHTS NGO FORUM
ANNUAL REPORT 2017
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