Page 99 - CA Sri Lanka Integrated Annual Report 2023

No. Source of Other Income Applicable Accounting Accounting Treatment
Standards /
Interpretations
01. Income from Hire of Halls Conceptual Framework Income from hire of halls is recognised on accrual basis.
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 are
of Property, Plant and recognised in the statement of comprehensive income after deducting
Equipment 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 (a) Project Expenses
Restricted contributions are provided direct request being made or without Expenses in carrying out the projects
based on agreements, contracts or other any defined terms and conditions being and other activities of the Institute
understanding, where the conditions laid down with regard to utilisation, are are recognised in the statement of
for receipt of the funds are linked to a unrestricted. In such circumstances the comprehensive income during the period
performance of a service or other process. funds are recognised as income when it is in which they are incurred and the basis for
The Institute earns the contribution through received. identifying project expenses are mainly on
compliance with the conditions that have locations of the project, staff allocated to the
been laid down and meeting the envisaged Funds are recognized in the statement of project and projected activities of the project
obligations. Income is not recognised in comprehensive income up to the extent that according to the project proposal.
the statement of comprehensive income, the Institute disburse the scholarship funds
until there is reasonable assurance that received for the agreed purpose. Expenses are recognised in the statement of
the contribution will be received, and the comprehensive income on the basis of direct
conditions stipulated for its receipt have The accounting treatments laid down association between the cost incurred and
been complied with and the relevant above are in compliance with Conceptual the earning of specific items of income.
expenses that it is expected to compensate Framework.
has been incurred and charged to the (b) Operational Expense
statement of comprehensive income. (d) Finance Income: All expenditure incurred in the running of the
Receipt of the funds does not by itself Finance income comprises of Interest Institute and in maintaining the capital assets
provide conclusive evidence that the income which has been recognised using in a state of efficiency has been charged
conditions attached to the contribution have effective interest rate method (EIR) according against income in arriving at the income over
been or will be fulfilled. Until the conditions to SLFRS 09 Financial Instruments. expenditure for the year.
have been fulfilled, the contribution is
regarded as part of restricted funds. 2.4.2 Expenditure Recognition Expenditure on examinations, seminars,
Expenses in carrying out the projects courses, and other educational and
On receiving any restricted contributions, and other activities of the Institute members' activities are recognised in the
the contribution is recognised in the are recognised in the statement of statement of comprehensive income on an
statement of financial position. Thereafter, comprehensive income during the period accrual basis.
on a systematic basis, an amount equivalent in which they are incurred. Other expenses
to that which has been spent on agreed incurred in administering and running the (c) Finance Expense
“restricted” activities during the period, is Institute and in restoring and maintaining the Finance expenses are recognised on an
taken to income. Unutilised funds are carried property, plant and equipment to perform accrual basis when they are paid or create
forward as such in the statement of financial at expected levels are accounted for on an liabilities.
position. accrual basis and charged to the statement
of comprehensive income.

Expenses are presented in the statement
of comprehensive income using Nature of
Expenses method.

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