Page 51 - OSISA Annual Report 2015-2018

settlement of foreign currency monetary items are recognised in the “Statement of Revenues, Expenses and Change in Fund Balance” of the period in which they arise.
Recognition of contribution revenue (Grant Income)
Grant income is recorded on an accrual basis, that is, when the Trust becomes eligible for earning revenue under the terms of the grants (rather than when receiving the cash).
Recognition of contribution revenue from Foundation Open Society Institute
The core budget has been provided as a conditional support where the condition is that the Trust is required to incur expenditures or legally binding commitments chargeable under the two core budgets.
Recognition of Expenses
Expenses are recorded on an accrual basis when goods are received or when services are performed.
Expenses related to grants provided by the Trust are recognised when the grant agreement is signed by the Trust and countersigned by the grant recipient. If grants are provided with conditions, the grant expense is recorded when the grantee meets the condition, or the condition becomes remote.
Property, plant and equipment
Property, plant and equipment is initially recognised at cost, which is directly attributable to the acquisition of the assets. Cost is recognised if it is probable that future economic benefits will flow to the Trust, and the cost can be measured reliably. After initial recognition, property, plant and equipment is carried at cost less any accumulated depreciation and any accumulated impairment losses. Subsequent costs are included in the assets’ carrying amount (or recognised as a separate asset if their useful life is different from that of the asset), only if it is probable that future economic benefits will flow to the Trust and the cost can be measured reliably.
The costs of maintenance and day to day servicing of the property, plant and equipment are recognised in the Statement of Revenues and Expenses in the year when they are incurred. Depreciation is recorded as a charge to the income statement on a straight-line basis so as to write off the cost of the assets to their residual value over their useful life. Depreciation commences in the month following the acquisition.
Useful life of the key asset categories are as follows:
Furniture, equipment and renovations:
Vehicles:
Computer equipment and software: 3 Years
Taxation Issues
OSISA is recognised as a Public Benefit Organisation (PBO), and thus OSISA is not involved in taxable activities and has no tax liability on corporate income tax.
6 Years 5 years
OPEN SOCIETY INITIATIVE FOR SOUTHERN AFRICA – 2015-2018 REPORT
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