Page 97 - 2596-CA SR Lanka- Annual Report 2022

No. Source of Other Income Applicable Accounting Accounting Treatment
Standards /
Interpretations
01. Income from Hire of Conceptual Framework Income from hire of halls is recognised on accrual basis.
Halls

02. Sponsorships and Conceptual Framework Income from sponsorships and contributions is recognised on accrual
Contributions basis.

03. Gains/Losses on Sale LKAS 16 Net gains and losses on the disposal of property, plant and equipment
of Property, Plant and are recognised in the statement of comprehensive income after
Equipment deducting from the proceeds on disposal, the carrying value of the
item disposed of and any related selling expenses. In the case of
any revalued asset, any balance remaining in the revaluation reserve
account is transferred to the statement of comprehensive income at
the time of disposal of the assets.

04. Miscellaneous Income Conceptual Framework Any other income not specified above is recognised on accrual basis.

(c) Restricted Contributions / Income Funds received as donations without any Institute has adopted the “Function of
Restricted contributions are provided direct request being made or without Expense” method to present fairly the
based on agreements, contracts or other any defined terms and conditions being elements of the Institute’s activities in its
understanding, where the conditions laid down with regard to utilisation, are statement of comprehensive income.
for receipt of the funds are linked to a unrestricted. In such circumstances the
performance of a service or other process. funds are recognised as income when it is (a) Project Expenses
The Institute earns the contribution received. Expenses in carrying out the projects
through compliance with the conditions and other activities of the Institute
that have been laid down and meeting Funds are recognized in the statement of are recognised in the statement of
the envisaged obligations. Income is comprehensive income up to the extent comprehensive income during the period
not recognised in the statement of that the Institute disburse the scholarship in which they are incurred and the basis
comprehensive income, until there is funds received for the agreed purpose. for identifying project expenses are mainly
reasonable assurance that the contribution on locations of the project, staff allocated
will be received and the conditions The accounting treatments laid down to the project and projected activities
stipulated for its receipt have been above are in compliance with Conceptual of the project according to the project
complied with and the relevant expenses Framework. proposal.
that it is expected to compensate
has been incurred and charged to the (d) Finance Income: Expenses are recognised in the statement
statement of comprehensive income. Finance income comprise of Interest of comprehensive income on the basis
Receipt of the funds does not by itself income which has been recognised of direct association between the cost
provide conclusive evidence that the using effective interest rate method incurred and the earning of specific items
conditions attached to the contribution (EIR) according to SLFRS 09 Financial of income.
have been or will be fulfilled. Until Instruments.
the conditions have been fulfilled, (b) Operational Expense
the contribution is regarded as part of 2.4.2 Expenditure Recognition
restricted funds. Expenses in carrying out the projects All expenditure incurred in the running of
and other activities of the Institute the Institute and in maintaining the capital
On receiving any restricted contributions, are recognised in the statement of assets in a state of efficiency has been
the contribution is recognised in the comprehensive income during the charged against income in arriving at the
statement of financial position. Thereafter, period in which they are incurred. Other income over expenditure for the year.
on a systematic basis, an amount expenses incurred in administering and
equivalent to that which has been spent running the Institute and in restoring Expenditure on examinations, seminars,
on agreed “restricted” activities during and maintaining the property, plant courses, and other educational and
the period, is taken to income. Unutilised and equipment to perform at expected members' activities are recognised in the
funds are carried forward as such in the levels are accounted for on an accrual statement of comprehensive income on
statement of financial position. basis and charged to the statement of an accrual basis.
comprehensive income.

CA SRI LANKA | Integrated Annual Report 2022 95