RAS-1988 — Page 22

# ROYAL ASIATIC SOCIETY – HONG KONG BRANCH NOTES TO THE ACCOUNTS

# YEAR ENDED 31ST DECEMBER 1988

## 1. ACCOUNTING POLICIES

(a) Subscriptions

Subscription income is accounted for as it is received, except that amounts received from new members joining after 31st October in any year are carried forward into the following year.

Income relating to life memberships is taken into account in full in the year in which it is received.

(b) The Society's Journal

Provision is made each year for the estimated cost of printing the Journal published for the previous year. Only those members who have paid their subscriptions in full in any year are entitled to receive the previous year's Journal.

(c) Purchase of books

The cost of books purchased for the Society's library is written off in the year in which it is incurred.

(d) Depreciation of fixed assets

Fixed assets, such as the Society's computer and photocopier, are capitalised in the balance sheet. Depreciation is provided so as to write off the cost of these assets over their estimated lives of four years.

This represents a change to the policy adopted in previous years, when such expenditure was written off as incurred. The effect of this change in policy has been to increase the current year's net expenditure by HK$790 and to increase the accumulated fund at 31st December 1988 by HK$13,284.

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