Annual Report 2012 - Page 19

American Chamber of Commerce in Macedonia 2.  Summary of significant accounting policies (continued) b. Revenue Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Chamber and the revenue can be reliably measured. The following specific criteria must also be met before revenue is recognized: Membership fees Revenue is recognized when the membership fee is paid from the member. Rendering of services Fees from services provided are recognized over the period in which the services are paid by the buyer. Interest income Interest income is recognized over the period in which the interest is transferred and paid to the Chamber. c. Fixed assets Fixed assets are recorded at cost upon their acquisition. Fixed assets are fully expensed at their invoiced amount upon their acquisition and are directly credited to the fixed assets fund in the balance sheet. Later, when the depreciation is calculated, the charge is also debited to the fixed assets fund. Fixed assets are stated at cost, excluding the cost of day-to-day servicing, less accumulated depreciation and accumulated impairment in value. Such cost includes the cost of replacing part of such equipment when that cost is incurred of the recognition criteria are met. Cost comprised purchase price, including import duties and non-refundable taxes as well as any directly attributable cost of bringing asset to its working condition and location for its intended use. The carrying values of equipment are reviewed for impairment when events change or changes in circumstances indicate that the carrying value may not be recoverable. An item of equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognizing of the asset (calculated as a difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement in the year the asset is derecognized. Depreciation is charged on a straight-line basis at prescribed by law rates to allocate the cost of plant and equipment over their estimated useful lives. The annual depreciation rates applied are the following: Computer equipment 25% Furniture and fixtures 20% 19