Page 98 - CA Sri Lanka Integrated Annual Report 2023

NOTES TO THE FINANCIAL STATEMENTS

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

96 CA Sri Lanka Integrated Annual Report 2023