SINGAPORE CHINESE CHAMBER OF COMMERCE FOUNDATION NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.7 Provisions

Provisions are recognised when the Foundation has a present obligation (legal or constructive) as a result of a past event. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount of the obligation can be estimated reliably.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic resources will be required to settle the obligation, the provision is reversed. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

2.8 Revenue recognition

Revenue is measured based on the consideration to which the Foundation expects to be the entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

Revenue is recognised when the Foundation satisfies a performance obligation by transferring a promised good or service to the customer, which is when the customer obtains control of the good or service. A performance obligation may be satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied performance obligation.

(a) Donations

Donations are recognised when the Foundation’s right to receive payment is established.

(b) Interest income

Interest income is recognised using the effective interest method.

3. MEMBERS’ GUARANTEE

The members of the Foundation are members or ex-members of the Chamber.

The liability of each member is limited to $500 while he/she is a member, or within one year after he/she ceases to be a member.

Singapore Chinese Chamber Of Commerce Foundation

NOTES TO THE FINANCIAL STATEMENTS – 31 DECEMBER 2022

4. INCOME TAX

The income of the Foundation is exempted from tax under section 13(1)(zm) of the Singapore Income Tax Act as the Foundation is a registered charity under the Singapore Charities Act.

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise the following:

The fixed deposits are placed at varying terms ranging from three months to two years and earned average effective interest rate of 1.57% (2021: 0.43%) per annum.