CTFA Annual Report 2019

NOTES TO THE FINANCIAL STATEMENTS FIGURES IN R 2019 2018 15. Employee benefits expense . . . . 15.1 Accounting policies Short-term employee benefits Compensation paid to employees for the rendering of services are recognised at the undiscounted amount paid or expected to be paid in the accounting period in which the services were rendered. Where employees accumulate entitlement for paid absences, an expense is recognised as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. In the case of non- accumulating paid absences, the expense is recognised only when the absences occur. The expected cost of profit-sharing and bonus payments are recognised when there is a present legal or constructive obligation to make such payments as a result of past events, and a reliable estimate of the obligation can be made. A present obligation exists when there is no realistic alternative but to make the payments. 15.2 Employee benefits expense comprises: Salaries 2,551,324 1,875,865 16. Other gains and losses 16.1 Other gains and losses comprise Gain or loss on disposal of assets - (14,519) Gain or loss on foreign exchange differences 55 (86) Fair value gain on investment 229,695 (196,489) Total other gains and losses 229,750 (211,094) 17. Finance income 17.1 Finance income comprises Investment income 511,198 206,422 Dividends received - Investment 4,751 18,815 Interest received - Investment 40,226 159,746 Total finance income 556,175 384,983 COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION OF SOUTH AFRICA 43