Annual Report 2012 - Page 18

ANNUAL REPORT 2012 NOTES TO THE FINANCIAL STATEMENTS at 31 December 2012 1.  General information about the Chamber American Chamber of Commerce - Skopje (“the Chamber”) was established in 2000 as a business interest association in the Republic of Macedonia. The purpose of the creation of the Chamber is to increase and develop the business activities of the members in the field of their operations and to increase and improve their results. The activities of the Chamber are: to further develop mutual cooperation of the business between the Republic of Macedonia and the United States of America; to encourage trade, investment and economic cooperation and development between the two countries; to open maintain lines of communication between economy and government as related to U.S/Macedonia trade and economic relations; to encourage legislation to simplify and enhance U.S-associated economy development in Macedonia and to promote good business practices and ethics; and to be a forum for the exchange of ideas among economies operating in Macedonia and the United States; to promote liberal market development in Macedonia and further Macedonia’s integration into the global trading system. AmCham aims to support and advance the interest of U.S., international and leading local businesses in Macedonia, and to promote the competitiveness of the country. Members of the Chamber are in the same time founders of the Chamber. The members are deciding for the issues in accordance with the Agreement of the Association of American Chamber of Commerce. 2.  Summary of significant accounting policies a. Basis of preparation These financial statements of the Chamber have been prepared in accordance with the legal regulations accepted in R. Macedonia in relation to the work of the non-profit organizations, the Law on Accounting for Non-profit Organizations of the Republic of Macedonia (Official Gazette of Republic of Macedonia 24/03 with amendments up to 17/11) and the Rulebook for non-profit organizations (Official Gazette of Republic of Macedonia 42/03 with amendments up to 175/11). The financial statements have been prepared for the year ended 31 December 2012. The Chamber’s financial statements are presented in Macedonian Denars (“MKD”). Accounting policy of the Chamber is to present financial statements on a cash receipts and disbursement basis of accounting. On this basis, revenue is recognized when received rather than when earned, and expenses are recognized when paid rather than when incurred. The payments executed in the year N will be considered as well as the payments executed beginning of the year N+1 and related to services rendered and goods delivered in the year N. 18