Page 58 - CPM_2020_Annual_Report_A4

56 CPM Sri Lanka | Annual Report 2019/20

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) NOTES TO THE FINANCIAL Computer Furniture Telephone Total
STATEMENTS Rs. Rs. Rs. Rs.

(e) Taxation (continued) As at 31 March,
4 Equipment
Deferred tax (continued)
Cost
the reporting period end date and are expected to apply when the related deferred tax asset is realized or the deferred Balance at the beginning of the year 314,814 196,078 4,255 515,147
income tax liability is settled.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against Additions during the year 332,810 45,810 - 378,620
current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation Balance at the end of the year 647,624 241,888 4,255 893,767
authority.

(f) Employee benefits Accumulated depreciation
Balance at the beginning of the year 293,463 160,186 3,884 457,533

(i) Defined contribution plans Charge for the year 25,297 21,939 371 47,607
Balance at the end of the year 318,760 182,125 4,255 505,140
Obligations to defined contribution plans are recognized as an expense in the statement of income and expenditure
when incurred. The Institute contributes 12% and 3% of gross emoluments of employees as Provident Fund and Trust
Fund respectively.
Carrying value
As at 31 March 2020 328,864 59,763 - 388,627
(g) Revenue recognition
As at 31 March 2019 21,351 35,892 371 57,614
Revenue from annual subscriptions from members, registration fee, Regional management conference income,
seminar income, advertisement income, interest income, and sponsorship income are measured at the fair value of
the consideration received and to the extent that it is possible that the economic benefits will flow to the Institute 2020 2019
and that it can be measured reliably. Rs. Rs.

5 Cash and cash equivalents
(h) Expenditure
Cash at bank 260,478 82,555
All expenditure incurred in the operations of the Institute and in maintaining the capital assets in a state of efficiency Cash in hand 78,000 10,000
has been charged to income when arriving at the Institute's surplus for the year.
338,478 92,555

(i) Comparative information Less: Bank overdraft (416,407) -
Cash and cash equivalents for the purpose of cashflows (77,929) 92,555
Where necessary, comparative figures have been rearranged to conform to the current year’s presentation.

(j) Events occurring after the reporting date 6 Accrued expenses

All material post reporting events have been considered and where appropriate adjustments or disclosures have been Audit fees 127,507 230,000
made in respective notes to the financial statements. Income tax 50,898 10,514

Accounting fees 15,000 7,500
(k) Commitments and contingencies
Employees’ Provident Fund 59,433 43,000
Contingencies are possible assets or obligations that arise from a past event and would be confirmed only on the Employees’ Trust Fund 8,915 6,450
occurrence or non-occurrence of uncertain future events, which are beyond the Institute’s control.
Contingent liabilities and commitments are disclosed in notes to the financial statements. Annual general meeting 200,000 200,000

Telephone and internet 19,743 10,452
Professional fee - 7,918

Cricket challenge 46,920 -
Office rent 33,000 -