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2.11 CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, demand deposits and other short-term highly
liquid investments with original maturities of three months or less. Bank overdrafts are shown as a
current liability on the statement of financial position.
2.12 TRUST FUNDS
Trust funds consist of trust funds invested and the corresponding trust creditors for the utilisation of
funds for specific projects as approved by Congress.
2.13 IMPAIRMENT OF NON-FINANCIAL ASSETS
The organisation assesses at every reporting date whether there is any indication that property, plant
and equipment may be impaired.
If there is any such indication, the recoverable amount of any affected asset (or group of related assets)
is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the
carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised
immediately in profit or loss.
If an impairment loss subsequently gets reversed, the carrying amount of the asset (or group of
related assets) is increased to the revised estimate of its recoverable amount, but not in excess of the
amount that would have been determined had no impairment loss been recognised for the asset (or
group of assets) in prior years. A reversal of impairment is recognised immediately in profit or loss.
2.14 EMPLOYEE BENEFIT OBLIGATIONS
2.14.1 Short-term employee benefits
The cost of short-term employee benefits (those payable within twelve months after the service is
rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as
medical care) are recognised in the period in which the service is rendered and are not discounted.
2.14.2 Defined contribution plans
Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.
2.15 TRADE PAYABLES
Trade payables are recognised initially at the transaction price and subsequently measured at
amortised cost using the effective interest rate method.
2.16 PROVISIONS AND CONTINGENCIES
Provisions are recognised when:
the organisation has an obligation at the reporting date as a result of a past event;
it is probable that the organisation will be required to transfer economic benefits in settlement; and
the amount of the obligation can be estimated reliably.
Provisions are measured at the present value of the amount expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the obligation. The increase in the provision due to the passage of time is
recognised as interest expense.
Provisions are not recognised for future operating losses.
FINANC
IAL
STATEMEN
TS
Basi
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