NOTES TO THE FINANCIAL STATEMENTS

FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b)Cash and cash equivalents

Cash and cash equivalents consist of cash in hand, cash at bank and fixed deposits with licensed banks with original maturities of 3 months or less that are readily convertible to known amounts of cash which are subject to an insignificant risk of change in value.

(c)Income and expenditure

Income is recognised when it is probable that the economic benefits associated with the transaction will flow to the organisation and the amount of income can be measured reliably.

Receipts from projects

Receipts from projects relate to donations raised from projects and are recognised on a receipt basis.

Donations received from individuals, societies and corporations

Donations received from individuals, societies and corporations are recognised on a receipt basis.

Interest from deposits with licensed banks

Interest from deposits with licensed banks is recognised on an accrual basis based on the principal outstanding and the rates applicable.

Interest from investments

Interest from investments is recognised on an accrual basis based on the principal outstanding and the rates applicable.

Dividend income

Dividend income is recognised when the right to receive payment is established.

Expenditure is recognised on an accrual basis.

(d)Investments

Investments are stated at lower of cost or market value on an aggregate portfolio basis. On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is charged or credited to the statement of income and expenditure.

Investments are classified as current assets if maturity is due within one year or less. If not, they are presented as non-current assets.