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NOTES TO THE FINANCIAL STATEMENTS

2.4 Statement of Comprehensive Revenue Source Recognition of Revenue
Income
2.4.1 Income Recognition 01. Enrolments Fees received in connection with enrolments to CA,
Degree, or another program as a student; CBA, CCA,
(a) Income ACA, FCA, or other membership, certificate to practice,
The sources of revenue of CA Sri training and learning partners are recognised at the point
Lanka are recognised as per SLFRS in time where the approval of the Council is granted and
15 on “Revenue from contracts with payment is due on such applications as the performance
customers”. Accordingly, SLFRS 15 obligation to stakeholder service is established.
establishes five step model to account 02. Subscriptions and The annual subscription applicable for the financial
for revenue recognition at an amount that annual renewal period that is charged from members and students
reflect the consideration where CA Sri is recognised over time since the performance
Lanka expects to provide services to its obligation satisfied over the financial period in which
stakeholders. The Institute has adopted the subscription is due. Subscription charged relating to
SLFRS 15 using the full retrospective future periods are shown in the statement of financial
method based on the assessment position as fees received in advance under current
performed and decided that the impact is liabilities.
not material to the financial statements
and therefore adjustment has not been Annual renewal charge from training partners and
made in the retained earnings opening teaching colleges are recognised as income as and when
balance of the statement of changes in the approval is granted by the Council. Which is deemed
funds and reserves. to be delivery of service at the point of time.
03. Examinations Fees on examinations are recognised as income
In terms of SLFRS 15, Revenue is upon satisfactory
recognised upon satisfactory performance
obligation is achieved. CA Sri Lanka execution of the performance obligation in the
expects that, the revenue recognition generation of admission.
to occur over time where stakeholders
(mainly students and members) 04. Income from supply Sale proceeds of the supplies of educational materials
simultaneously receive and consume the of educational are recognised as an income at the point in time of
benefits provided by CA Sri Lanka and materials dispatch or sale has occurred.
when the Institute has an enforceable
right to receive payment for performance 05. Income from Income from courses except the general examinations
completed. Otherwise, the revenue of the courses are recognised as an income on periodic basis over time.
Institute is recognised at point in time. Income from courses relate to future periods are shown
in the Statement of Financial Position as
Following table provides the details of the
sources of revenue and recognition of deferred income under current liabilities.
revenue upon satisfaction of performance 06. Income from Income from seminars, workshops, conference and
obligations as per SLFRS 15. Seminar and other continuous professional development activities are
Workshops recognised at the point in time upon register and collect
on the payment for the event.
07. Arrears, penalties Arrears, penalties and fines in connection with the
and fines payments received after the due date are recognised
upon receipt of income. Therefore,

revenue is recognised at point in time.
08. Income from Income arising from training agreements with students is
training agreements recognised on periodic basis over time from registration
of CA students to completion of training agreement.

(b) Other Income
The sources of other income are recognised as per the Conceptual Framework and other
applicable standards. The following table provides the details of sources of other income
along with the treatment being followed.

94 CA SRI LANKA | Integrated Annual Report 2022