(1) All items of revenue which fulfil the following criteria, shall be taken as income on accrual basis:
(a) The income is earned or the right to receive it is established;
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(b) The amount due is determined or determinable; and
(c) No significant uncertainty exists about its realisation.
(2) In all such cases, a summary statement of demand raised or income accrued shall be submitted by the concerned department in KMF NO.13 to the Accountant at the following frequency:
(a) In respect of property tax, advertisement tax, leases and licences – annually, at the beginning of the year, for the whole year’s income;
(b) In respect of water charges and rent, semi-annually, at the beginning of April and October, for half year’s income;
(c) In respect of other incomes – as and when they become due for collection.
(3) The Accountant shall, based on this statement, pass a journal voucher and accrue the income by debit to its “Receivable Account”.
(4) All collections in respect of accrued income shall be credited to the same ‘Receivables Account’.