Page 171 - Adopt-a-School Foundation 2016-2017 Annual Report

ADOPT-A-SCHOOL FOUNDATION NPC
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ended 30 June 2017

1.13 provisions

Provisions are recognised when the Foundation has a present legal or constructive obligation as a result of past events and it is probable that an outflow of
economic resources will be required to settle the obligation and the amount of the provision can be reliably measured or estimated.

Provisions are measured at the present value of the expenditures expected to settle the obligation using a pre-tax discount rate that reflects current market
assumptions on the time value of money and the risks specific to each liability. The increase in the provision due to the passage of time is recognised as interest
expense.

1.14 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable for the sale of services in the ordinary course of the Foundation’s activities.
Revenue is shown, net of value-added tax. The entity recognises revenue when the amount of revenue can be reliably measured when it is probable that
future economic benefits will flow to the entity and specific criteria have been met for each of the entities activities as described below.
Revenue consists of the following donations split in the following classifications:
• Project Revenue
• Anchor Revenue
• Fundraising Revenue

Project revenue arises from donations from various donors and is used to fund specific projects.

Anchor and Fundraising revenue generated from fundraising events and donations received for the Foundation specifically and is used to cover operating
expenses.

1.15 employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses,
and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of
non-accumulating absences, when the absence occurs. The expected cost of profit sharing and bonus payments is recognised as an expense when there is a
legal or constructive obligation to make such payments as a result of past performance.

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