CTFA Annual Report 2021

NOTES TO THE FINANCIAL STATEMENTS 14. Employee benefits expense 14.1 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. 14.2 Employee benefits expense comprises Salaries 2,899,779 2,818,226 15. Other gains and losses Other gains and losses comprise Profit on disposal of non-current assets 96 - 16. Finance income Finance income comprises Interest received - Bank 416,399 461,374 17. Income taxation expense No provision has been made for the 2021 year. The association is exempt from tax on the types of income generated during the year due to its status as a Voluntary Association incorporated under Common Law and its tax exemption in terms of Section 30 of the Income Tax Act. FIGURES IN R NOTES 2021 2020 COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION OF SOUTH AFRICA 39