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
Select target paragraph3
Add to table of contents