Notes To The Financial Statements (Continued) For The Year Ended 30 June 2014 2.4 STANDARDS ISSUED BUT NOT YET EFFECTIVE The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the organisation’s financial statements are disclosed below. The organisation intends to adopt these standards, if applicable, when they become effective. None of the amendments are expected to have a significant impact on the organisation's net results, net assets or disclosures. IFRS 9 Financial Instruments It is applicable to financial assets and financial liabilities. For financial assets it requires classification and measurement in either the amortised cost or the fair value category. For an organisation's own debt held at fair value, the standard requires the movement in fair value as a result of changes in the organisation's own credit risk to be included in other comprehensive income. Under the amendment issued in November 2013 there is no mandatory effective date of IFRS 9. The adoption of IFRS 9 is not expected to have a significant impact upon the organisation's new results or net assets. Amendments to IAS 32 on offsetting financial Assets and financial Liabilities and IAS 39, on novation of derivatives and continuation of hedge accounting. These amendments are effective for accounting periods beginning on or after 1 January 2014 and will not have an effect on the organisation. 2.5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) 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. 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. b) 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 institutions until such a date the Minister may specify by notice in the Gazette. As no such notice has been gazzetted in respect of the year covered by these financial statements, no provision for taxation has been made. Value Added Tax (VAT) Revenue, expenses and assets are recognised net of the amount of value added tax except: where the value added tax incurred on purchase of assets or services is not recoverable from the taxation authority, in which case the VAT is recognised as part of the cost of acquisition of the asset or as part of the expense items as applicable. Receivables and payables that are stated with the amount of VAT included the net amount of VAT receivable from or payable to the tax authorities is included as part of receivables or payables in the Statement of Financial Position. 44