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