Page 111 - TKZN Annual Report 2023/2024

KWAZULU-NATAL TOURISM AUTHORITY
Trading as Tourism KwaZulu-Natal
Annual Financial Statements for the year ended 31 March 2024
Significant Accounting Policies
1.7 Financial-instruments (continued)
Financial-instruments at amortised value:
Are non-derivatives that have fixed or determinable payments, excluding those instruments that: • the entity designates as fair value on initial recognition
• are held for trading
Measured at amortised cost using the effective interest method, less impairment losses. Financial-instuments at cost:
Are investments in residual interests that do not have a quoted market price in an active market, and whose fair value cannot be reliably measured
Measured at amortised cost less impairment losses.
Derecognition of financial assets
An entity shall derecognise a financial asset only when:
• the contractual rights to the cash flows from the financial asset expire,are settled or waived;
• the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or
• the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.
A financial liability is derecognised only when extinguished i.e.,when the obligation specified in the contract is discharged, cancelled or it expires.
TOURISM KWAZULU-NATAL ANNUAL REPORT 2023/2024 109