2.
Significant accounting policies and other explanatory information (cont'd)
2A.
Significant accountingpolicies (cont'd)
Revenue recognition (cont'd)
(i)
Donations and sponsorships
Revenue from donations and sponsorships are accounted for when received, except for committed donations
and sponsorships that are recordedwhen there is certainty over the amount committed by the donors and over
the timingof the receipt of thedonationsandsponsorships.Revenue from fundraisingevent is recognisedwhen
the event has occurred.
(ii)
Interest income
Interest revenue is recognised on a time-proportion basis using the effective interest rate.
(iii)
Government grant
Agovernment grant is recognisedat fair valuewhen there is reasonableassurance that the conditionsattaching
to it will be complied with and that the grant will be received. Grants in recognition of specific expenses are
recognisedas incomeover theperiodsnecessary tomatch themwith the related costs that theyare intended to
compensate, ona systematic basis.Agrant related todepreciableassets is allocated to incomeover theperiod
in which such assets are used in the project subsidised by the grant. A government grant related to assets,
including non-monetary grants at fair value, is presented in the statement of financial position by setting up the
grant as deferred income.
Gifts in kind
Agift in kind (if any) is included in the statement of financial activities based on an estimate of the fair value at
the date of the receipt of the gift of the non-monetary asset or the grant of a right to themonetary asset. The
gift is recognised if the amount of the gift can be measured reliably and there is no uncertainty that it will be
received. No value is ascribed to volunteer services.
Employee benefits
Contributions toadefined contribution retirement benefit planare recordedas anexpenseas they fall due. The
entity’s legal or constructive obligation is limited to the amount that it agrees to contribute to an independently
administered fund (suchas theCentralProvidentFund inSingapore,agovernmentmanageddefinedcontribution
retirement benefit plan). For employee leave entitlement the expected cost of short-term employee benefits in
the form of compensated absences is recognised in the case of accumulating compensated absences, when
theemployees render service that increases their entitlement to future compensatedabsences; and in the case
of non-accumulating compensated absences, when the absences occur. A liability for bonuses is recognised
where the entity is contractually obliged or where there is constructive obligation based on past practice.
Income tax
Asanapprovedcharityunder theCharitiesAct,Cap. 37, theSociety isexempted from income taxunderSection
13(1)(zm) of the IncomeTaxAct, Cap 134.
Foreign currency transactions
The functional currency is the Singapore dollar as it reflects the primary economic environment in which the
entity operates. Transactions in foreign currencies are recorded in the functional currency at the rates ruling
at the dates of the transactions. At each end of the reporting year, recordedmonetary balances and balances
measured at fair value that are denominated in non-functional currencies are reported at the rates ruling at the
end of the reporting year and fair valuemeasurement dates respectively. All realised and unrealised exchange
adjustment gains and losses are dealt with in profit or loss except when recognised in other comprehensive
income and if applicable deferred in equity such as for qualifying cash flow hedges.
The presentation is in the
functional currency.
Plant and equipment
Depreciation is provided on a straight-line basis to allocate the gross carrying amounts of the assets less their
residual values over their estimated useful lives of each part of an item of these assets. The annual rates of
depreciation are as follows:
Computer equipment
– 2 years
Office equipment
– 3 years
Office furniture
– 3 years
Renovation
– 3 years or over the lease term of 5 years
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