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1.2 Own Source Revenue

1.2a. Sale of Goods and Rendering of Services

2019

2018

$

$

Loan Administration Fees

87,420

76,490

Total: Sale of Goods and Rendering of Services

87,420

76,490

Accounting Policy

Revenue from the sale of goods is recognised when:

  • the risks and rewards of ownership have been transferred to the buyer;
  • the Fund retains no managerial involvement nor effective control over the goods;

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 days terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed as at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Other Types of Revenue

A charge is recovered from loan applicants to help defray administrative expenses and to provide growth in the Fund. These member contributions (loan administration fees) are recognised as income in the year the loan is made and form part of the outstanding loan amount.

1.2b. Interest

2019

2018

$

$

Interest from Bank Accounts

20,134

19,453

Loan Interest

513,235

522,268

Total: Interest

533,369

541,721

Accounting Policy

Interest revenue is recognised using the effective interest method.

1.2c. Contributions and other Sources

2019

2018

$

$

RANCCB Contributions

104,494

119,734

Donations

47,804

35,127

Total: Contributions

152,298

154,861

1.2d. Resources Received Free of Charge

2019

2018

$

$

Salaries

158,834

155,961

Total: Resources Received Free of Charge

158,834

155,961

Accounting Policy

Resources Received Free of Charge

Resources received free of charge are recognised as revenue when and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.