CPA Annual Report : CPA Annual report 2012
e. Derecognition of nancial assets and nancial liabilities Financial assets are derecognized when the contractual rights to receive the cash flows of the financial assets expire; or where the Trust Fund transfers the financial assets and either (i) it has transferred substantially all the risks and rewards of ownership of the financial assets; or (ii) it has neither transferred nor retained substantially all the risks and rewards of ownership of the financial assets but has not retained control of the financial assets. Financial liabilities are derecognized when they are extinguished, i.e. when the obligation is discharged, cancelled or expires. f. Cash and cash equivalents Cash and cash equivalents comprise cash at bank, and deposits with banks and other financial institutions having a maturity of three months or less at acquisition. g. Revenue recognition Revenue is recognized when it is probable that the economic benefits will flow to the Trust Fund and when the revenue can be measured reliably. Donations are recognized on an accrual basis when receipt thereof is certain. Interest income from bank deposits and bank savings accounts is recognized as it accrues using the effective interest method. h. Related parties A related party is a person or entity that is related to the Trust Fund. (i) A person or a close member of that person's family is related to the Trust Fund if that person: (a) has control or joint control over the Trust Fund; (b) has significant influence over the Trust Fund; or (c) is a member of the key management personnel of the Trust Fund or of a parent of the Trust Fund. (ii) An entity is related to the Trust Fund if any of the following conditions applies: (a) e entity and the Trust Fund are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others). (b) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member). (c) Both entities are joint ventures of the same third party. (d)One entity is a joint venture of a third entity and the other entity is an associate of the third entity. (e) e entity is a post-employment benefit plan for the benefit of employees of either the Trust Fund or an entity related to the Trust Fund. If the Trust Fund is itself such a plan, the sponsoring employers are also related to the Trust Fund. (f) e entity is controlled or jointly controlled by a person identified in (i). (g) A person identified in (i)(a) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).