Annual Report 2012 - Page 20

ANNUAL REPORT 2012 2.  Summary of significant accounting policies (continued) d. Fixed asset fund The fixed asset fund of the Association is set up in accordance with the Law on Accounting for Non-profit Organizations of the Republic of Macedonia and corresponds to the net carrying amount of the fixed assets. Increases to the fund are generated upon acquisition of fixed assets. Decreases to the funds are recorded annually and entirely comprise of the depreciation charge and any disposals. c. Accounts receivables Accounts receivables are recognized and carried at original invoice amount less an allowance for any uncollectible amounts. An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified. d. Cash and cash equivalent Cash and cash equivalents comprise from cash at bank and cash in hand. e. Taxes Current tax Current income tax expense for 2012 consists from current tax of non-deductible expenses. The income tax rate for both 2012 and 2011 is 10 %. The calculation and payment of the current income tax is in accordance with the legal regulations referring to the Income Tax Law which are effective as of 01 January 2009 (published in Official Gazette 159/08, 85/10, 47/11 and 135/11). Taxes in 2012 and 2011 are calculated and paid to unrecognized expenses. With this abandoned was model of taxation of the profit evidenced in Income statement, corrected for tax unrecognized expenses used in 2009 and was replaced with model of taxation of tax non-deductable expenses with correction of amount of tax credit and tax releases. Paying of monthly obligation is in advance and only to unrecognized expenses. VAT The Chamber is not registered taxpayer for the purposes of VAT, so the expenses and assets are recognized with the amount for VAT. Net amount for VAT that is paid to tax authorities is part of obligation in balance sheet. f. Foreign exchange transactions Foreign exchange transactions are recorded at the rate ruling at the day of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Resulting exchange differences are taken to the income statement. 20