Notes To The Financial Statements for the year ended 30 June 2014 1 NATURE OF BUSINESS The Legal Resources Foundation is a charitable and educational trust registered under the Private Voluntary Organistaion Act. It was established to promote the development of legal resources in Zimbabwe and to facilitate the realisation of the social, economic and legal rights of the population as a whole. It seeks to improve the accessibility innovative projects which make the best use of limited financial and legal resources in Zimbabwe. The Legal Projects Centres in Harare, Bulawayo,Gweru ,Masvingo and Mutare are responsible for the implementation of projects approved by the trustees of the Legal Resources Foundation. 2.1 BASIS OF PREPARATION The financial statements are based on statutory records that are maintained under historical cost convention. Statement of compliance The organisation’s financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) interpretations. Presentation of financial statements The financial statements are expressed in United States dollars which is the functional and presentation currency to the nearest dollar. 2.2 CHANGES IN ACCOUNTING POLICIES AND DICLOSURES New and amended standards and interpretations The accounting policies adopted are consistent with those of the previous financial year, except for the following amendments to IFRS effective as of 1 January 2013: IAS 1 Presentation of Items of Other Comprehensive Income – Amendments to IAS 1 The amendments to IAS 1 change the grouping of items presented in other comprehensive income (OCI). Items that could be reclassified (or ‘recycled’) to profit or loss at a future point in time (for example, actuarial gains and losses on defined benefit plans and revaluation of land and buildings) would be presented separately from items that will never be reclassified (for example, net gain on hedge of net investment, exchange differences on translation of foreign operations, net movement on cash flow hedges and net loss or gain on available-for-sale financial assets). The amendment affects presentation only and has no impact on the organisation’s financial position or performance. IAS 19 Employee Benefits Amended Standard resulting from the Post-Employment Benefits and Termination Benefits projects (as amended in 2011). There is no impact on the organisation. IFRS 7 Disclosures — Offsetting Financial Assets and Financial Liabilities — Amendments to IFRS 7 These amendments require an entity to disclose information about rights to set-off and related arrangements (e.g., collateral agreements). The disclosures would provide users with information that is useful in evaluating the effect of netting arrangements on an entity’s financial position. The new disclosures are required for all recognised financial instruments that are set off in accordance with IAS 32 Financial Instruments: Presentation. The disclosures also apply to recognised financial instruments that are subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are set off in accordance with IAS 32. These amendments have not impacted the organisation’s financial position or performance and became effective for annual periods beginning on or after 1 January 2013. 42