Page 112 - 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)
Classification
The entity has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:
Class
Receivables from exchange transactions Receivables from non-exchange transactions Cash and cash equivalents
Receivables from exchange transactions
Category
Financial liability measured at fair value Financial liability measured at fair value Financial asset measured at fair value
Receivables from exchange transactions are transactions in which one entity receives assets or services, and directly gives obligation of the approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange .
Receivables from non-exchange transactions
Receivables from non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange .
Cash and cash equivalents
Cash comprises cash on hand and demand deposits.
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Cash equivalents are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.
Cash and cash equivalents comprise bank balances, cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less which are available on demand.
Some equity investments are included in cash equivalents when they are, in substance, cash equivalents.
The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:
Class
Payables from exchange transactions Payables from non-exchange transactions
Payables from exchange transactions
Category
Financial liability measured at fair value Financial liability measured at fair value
Payables from exchange transactions are transactions in which one entity has a financial liability and directly has an obligation to give approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.
Payables from non-exchange transactions
Payables from non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange.
110 TOURISM KWAZULU-NATAL ANNUAL REPORT 2023/2024