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00:00The last problem is fund raising events.
00:13In fund raising events, how do we account for things in terms of income and expenditure?
00:20For example, you get an event done by yourself.
00:23For example, you get a phone call or an event where people donate to you.
00:32But for that event, you have to spend some money.
00:37So, you have to deal with people directly.
00:41Now, we have to see if the NPO is a direct principle or not.
00:48What does principle mean?
00:50Is the NPO organising itself or not?
00:56If all the hard work is done by the NPO, then what do you call a telephone?
01:08You collect money on the telephone.
01:10So, there will be all the arrangements for that.
01:12So, you will have revenue and expenses.
01:18So, you will have revenue in terms of income and expenses in terms of expenditure.
01:27On what basis?
01:29On a gross basis.
01:32There is a small number in the paper.
01:36We have organised a fund raising event.
01:39It can be done on a gross basis or a net basis.
01:43If it is a principle, then we are writing the rest of the income separately.
01:48Contribution separately.
01:50Membership separately.
01:52There was a fund raising event as well.
01:54If it is a principle, then we will not write it on a net basis.
01:58We will write it on a gross basis.
02:01But if you say to the NPO that we are organising an event as a student.
02:06And we are organising a musical concert or some other event.
02:09Or we are organising a Quran khani.
02:11Or we are organising some other event where we will give tickets to people.
02:14And people will come and participate.
02:17And they will give you whatever income they get.
02:20Now, your name is being taken for them.
02:23But you are not directly involved in any arrangement or organisation.
02:27So, you are not directly involved in the principle.
02:30Here, the principle was yes.
02:32And what is the principle here? No.
02:33If it is here, then whatever tickets you sell from there.
02:38Revenue.
02:40And whatever expenses will be there.
02:42Adjust them and record them on a net basis.
02:49That's it.
02:51What did you learn from this point?
02:53One thing is confirmed.
02:55If there is a fund raising event.
02:57So, if you get any income from it, then you will write both income and expense.
03:01But if you are the principal yourself.
03:05Then you have to tell the stakeholders of NPO.
03:09That from this fund raising event.
03:11How much money our donors have given.
03:14We will not do the net.
03:16We will tell that in this telethon.
03:18Our revenue was 5 crores.
03:21Below, we will take expense from operating expense.
03:24That how much will be spent on telethon.
03:26We will not do the net there.
03:27So that we get complete information.
03:29What the donors have given.
03:31And where he himself will not be the principal.
03:33Where he himself will not be the principal.
03:35Then after that event is concluded.
03:38If any income or expense is left.
03:40Then we will write it as what we got from there.
03:43We will not write income or expense.
03:45So, if you are the principal.
03:47Then we will write on a gross basis.
03:49And if you are not the principal.
03:51Then we will write on a net basis.
03:53Just revise it and see.
03:57Thank you.
04:27Yes, tell me.
04:48Now, the last point we studied from this.
04:51One is investment income.
04:53Which one we studied before investment income?
04:55Government funding.
04:57Now, the same thing will come there too.
04:59If you have done any work as a principal.
05:03Then you will report the revenues and expenses on a gross basis.
05:09Separately.
05:11And if you have not done the work as a principal.
05:13Okay.
05:15So, if you have saved on that.
05:17For example, the federal government has said that so many vaccines have to be made.
05:19And these people have to be given.
05:21So, who is doing all the work?
05:23Who is the main principal?
05:25Federal government.
05:27And the government that gave you the fund.
05:29We will write on a net income basis.
05:31But if you are doing all the work yourself.
05:35The government has given the funding.
05:37But you have the decision discretion.
05:39Then the revenues will be reported separately.
05:41And expenses will be reported separately on a gross basis.
05:45Are you understanding?
05:48Yes.
05:53What was it?
05:55Anyone else?
05:57Yes.
05:59So, what is the importance of these details?
06:01How can you make a difference on paper?
06:03Both in the objective and in the paper.
06:05Does anyone have any objection?
06:07Any objection?
06:09See if you can read this.
06:11Okay, Mr. Book.
06:13Read one or two examples.
06:15This is the example of ICAP.
06:17Example number 13 and 14.
06:19Read the example number 13 and 14.
06:22It's 13 or 14 in ICAP.
06:24Read in my own book.
06:26In the same book, number 13.
06:28Number 14 is in the book of Lahore.
06:32And our book now writes ...
06:36Since there is a surplus product.
06:41See there is a surplus.
06:43We have on page number 539, example number 8 and 9, we are talking about event, right?
07:10Fundraising event, right?
07:11So, you can go to our website and see example number 8 and 9.
07:15In our book, there is example number 8 and 9 and in iCAP's book, there is example number 13 and 14.
07:23See if it is clear or not.
07:30Hurry up, Shahbaz.
07:41Okay.
08:11Okay.
08:41Okay.
09:11What is written here?
09:12If you are the principal, then?
09:14If you are not the principal, then?
09:17If you read one or two examples of government funding, then you will understand.
09:22So that you know that you have to write these things on a gross basis and not on a net basis.
09:27Okay, friends?
09:28Anyone has any objection?
09:29Okay.
09:30Close it, Shahbaz.
09:36What will be our next problem?