Financial Statements For the year ended
Significant accounting policies (continued)
Download 0.68 Mb. View original pdf
|
| 2 Significant accounting policies (continued) (c) Critical accounting estimates and judgements (continued) v) Provision for credit loss ACCA applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables. To measure expected credit losses on a collective basis, trade receivables are grouped based on similar credit risk and aging. The expected loss rates are based on ACCA’s historical credit losses experienced over previous periods. The historical loss rates are then adjusted for current and forward-looking factors affecting ACCA’s members, future members and other customers e.g. retention rates. vi) Leased assets ACCA applies IFRS 16 to account for its right-of-use assets and the related lease liabilities. ACCA assesses whether or not a rental contract contains a lease, whether or not an extension option will be exercised, whether or not a termination option will not be exercised and whether or not variable leased payments are truly variable or in-substance fixed. ACCA will use its judgement when making these assessments and will consider all facts and circumstances. In applying IFRS 16, ACCA calculates the appropriate discount rate to use, estimates the lease term and estimates variable lease payments dependant on an index or rate as appropriate. (d) Income Income as presented in the consolidated income statement is revenue as defined under IFRS 15 – Revenue from Contracts with Customers. The following accounting policies relate to ACCA’s key income streams. • Members and future members subscriptions are recognised overtime in the year to which they relate Member admission fees are accounted for as income from the date on which the member is admitted to the date of the member’s first annual subscription Future member registration fees are accounted for as income from the date of registration to the date of the future member’s first annual subscription Income from qualifications and examinations relate to examination and exemption income from the professional qualification and our entry level qualifications. Examination fees are accounted for in the period in which the related exam session took place, while exemption income is accounted for in the period in which it was awarded Income generated from publications relates to royalties, advertising and mailing services. Royalties receivable in respect of the assignment, to third parties, of copyrights in educational publications are accounted for as income in the period in which the underlying sales take place Course income is accounted for as the services are performed Income from regulation and discipline relates to annual licence fees, monitoring visit fees and fines recoverable, and all are accounted for as income in the period to which they relate Other income is recorded as earned or as the services are performed. (e) Basis of consolidation The consolidated financial statements comprise the consolidated income statement, consolidated statement of comprehensive income, consolidated balance sheet, consolidated statement of changes in members funds, and consolidated cash flow statement of ACCA and its subsidiaries (the group) as if they formed a single entity drawn up to 31 March 2021 and 31 March 2022. Where ACCA has control over an investee, it is classified as a subsidiary. The company controls an investee if all three of the following elements are present power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there maybe a change in any of these elements of control. Inter-company transactions and balances between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Association of Chartered Certified Accountants Notes to the Financial Statements for the year ended 31 March 2022 Download 0.68 Mb. Share with your friends:
|