1 minute read
AIESEC INTERNATIONAL NOTES TO THE FINANCIAL STATEMENTS AS AT MAY 31, 2020
3. Significant accounting policies (cont'd.)
(f) Revenue recognition
Advertisement
Contributions
The Organization follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenditures are incurred. Unrestricted contributions are recognized as revenue when they are received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured.
Membership fees
Member fees are recognized as revenue proportionately over the fiscal year to which they relate.
Partnership revenue
Partnership revenue is recognized when the services are provided in accordance with the partnership agreements, the risk has been transferred, the price has been established or is determinable, and collection is reasonably assured.
(g) Government assistance
Government and other grants related to property and equipment are accounted for as deferred government assistance and amortized on the same basis as the related property and equipment. Operating grants are accounted for as a reduction of operating expenditures.
(h) Foreign currency translation
The Organization uses the temporal method to translate its foreign currency transactions.
Monetary assets and liabilities are translated at the exchange rate in effect at the balance sheet date. Other assets and liabilities are translated at the exchange rate in effect at the transaction date. Revenues and expenditures, except for amortization translated at the historical rate, are translated at the average rate for the year. Exchange gains and losses are included in the statement of operations.