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122 CA Sri Lanka Integrated Annual Report 2024

Notes to the Financial Statements Contd.

assets is recognised in the statement of over the period necessary to match In terms of SLFRS 15, Revenue
comprehensive income. it with the costs, which is intended to is recognised upon satisfactory
compensate for on a systematic basis. performance obligation is achieved.
Fair value is treated as deemed cost of CA Sri Lanka expects that, the revenue
the land at the date of the recognition of 2.4 Statement of Comprehensive recognition to occur over time where
Government grant given in the financial Income stakeholders (mainly students and
statements. members) simultaneously receive and
2.4.1 Income Recognition consume the benefits provided by CA
Grants and subsidies related to assets Sri Lanka and when the Institute has an
are generally deferred in the statement (a) Income enforceable right to receive payment for
of financial position and credited to the The sources of revenue of CA Sri performance completed. Otherwise, the
statement of comprehensive income over Lanka are recognised as per SLFRS revenue of the Institute is recognised at
the useful life of the asset. 15 on “Revenue from contracts with point in time.
customers”. Accordingly, SLFRS 15
2.3.4.2 Revenue Grants establishes five step model to account for The following table provides the details of
Other grants are recognised in the revenue recognition at an amount that the sources of revenue and recognition of
financial statements at their fair value. reflect the consideration where CA Sri revenue upon satisfaction of performance
When the grant or subsidy relates to an Lanka expects to provide services to its obligations as per SLFRS 15.
expense it is recognised as an income stakeholders.

Revenue Source Recognition of Revenue
01. Enrolments Fees received in connection with enrolments to CA, Degree, or another program as
a student; CBA, CCA, ACA, FCA, or other membership, certificate to practice, training
and learning partners are recognised at the point in time where the approval of the
Council is granted, and payment is due on such applications as the performance
obligation to stakeholder service is established.
02. Subscriptions and annual renewals The annual subscription applicable for the financial period that is charged from
members and students is recognised over time since the performance obligation
satisfied over the financial period in which the subscription is due. The subscription
charged relating to future periods are shown in the statement of financial position as
fees received in advance under current liabilities.
Annual renewal charges from training partners and teaching colleges are
recognised as income as and when the approval is granted by the Council. Which is
deemed to be delivery of service at the point of time.
03. Examinations Fees on examinations are recognised as income upon satisfactory
execution of the performance obligation in the generation of admission.
04. Income from supply of educational Sale proceeds of the supplies of educational materials are recognised as an income
materials at the point in time of dispatch or sale has occurred.
05. Income from courses- Income from courses except the general examinations are recognised as income on
periodic basis over time. Income from courses relate to future periods are shown in
the Statement of Financial Position as deferred income under current liabilities.
06. Income from Seminar and Workshops Income from seminars, workshops, conference and other continuous professional
development activities are recognised at the point in time upon register and collect
on the payment for the event.
07. Arrears, penalties and fines Arrears, penalties and fines in connection with the payments received after the due
date are recognised upon receipt of income. Therefore,
revenue is recognised at point in time.
08. Income from training agreements of Income arising from training agreements with students is recognised on periodic
CA students basis over time from registration to completion of training agreement.