Notes To The Financial Statements (Continued) 30 June 2015 Revenue Recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the organisation and revenue can be reliably measured. Sale of Goods Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of goods. Library Subscriptions Revenue received for library subscriptions is recognised on a time basis by reference to the period for which the subscriptions cover. Interest income Interest income is accounted for on a time basis by reference to the principal outstanding and at the effective interest rate applicable which is the rate that exactly discounts the estimated future cash receipts through the expected life of the financial assets to the asset’s carrying amount. Interest income is included in the finance income in the Statement of Profit or Loss. Donations income Donations received for specific projects are treated as income by reference to the stage of completion of the specific project. General donations and grants which are not received for specific projects are accounted for when received. Donations in kind are recorded in the accounts at the appropriate value in US$. Taxes Current income tax In terms of the Third Schedule to the Income Tax Act (Chapter 23:06) and Capital Gains Act Section 10, private voluntary organisations are exempt from income tax, capital gains tax and resident tax on interest from financial institution until such a date the Minister may specify by notice in the Gazette. As no such notice has been gazetted in respect of the year covered by these financial statements, no provision for taxation has been made. Legal Resources Foundation Annual Report 2015 45