Income recognition
Turnover includes the value of services recognised in the year as and when invoiced, and the receipt from events and membership fees excluding value added tax. These are accounted for on an accrual basis when the company is entitled to the income and the amounts can be quantified with accuracy. Turnover also encompasses the value of projects which are carried out on behalf of government agencies, recognised as follows:
Monetary grants
Grants are accounted for under the accrual model and classified either as a grant relating to revenue (revenue-based grant) or a grant relating to assets (capital-based grants). Grants which relate to revenue are recognised in income in the period the related costs arc incurred by the entity for which the grant is intended to compensate. For grants which arc received by the entity for compensation for expenses or losses which have already been incurred, the grant is recognised in income when it is received or receivable provided that the terms of the grant do not impose future performance-related conditions. Any grants that are received before the revenue recognition criteria are met are recognised in the entity's financial statements as a liability. Government grants in relation to tangible fixed assets are credited to profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure arc credited when the expenditure is charged to profit and loss.
Non-monetary grants
Grants which are not necessarily made in cash are measured at the fair value of the asset received or receivable.
Deferred income
The membership subscription payments are charged on an annual basis. For accounting purposes membership payments are recorded when the invoices are raised and recognised as a liability for services to be rendered, they are then apportioned over the subsequent twelve months in equal amounts. and renewal payments are treated on a similar basis