Page 121 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
Notes to the Financial Statements (continued) 44. Change in accounting estimate (continued)
The entity on a yearly basis does an assessment on its assets useful life, in line with the accounting policy on the useful life
of the property plant and equipment and intangible assets. In the year under review the entity assessed the useful life of all of its assets, and there were assets that will be able to be used beyond the initial estimated useful lives. The entity’s assets have a useful life accordinding to the entity’s accounting policy, however after assessment a number of entity’s assets were found to be still usable for an additional periods.This was further impacted by the budget contraints to dispose and replace these assets.
As per GRAP 3.39 the change in accounting estimate was performed on the entity’s assets which were found to be in use even though the useful life had been reached. The carrying amount of such assets has been adjusted accordingly and depreciation revised on such assets. The carrying amount of those assets as at end of March 2024 was R110,217.
The change in the accounting estimate resulted in a change in depreciation by R110,217 and increase in future periods in depreciation of R110,217
45. Change in estimate
Property, plant and equipment
The remaining useful lives of all assets were assessed during the year. A change in accounting estimate was effected in relation to fully depreciated assets still in use.
The useful life of certain assets remaining useful life during the financial period, was revised in the current period management have revised their estimate. The effect of this revision has decreased the depreciation charges for the current year by R110,217 - and also resulting a decrease in accumulated depreciation by R110,217.
Furniture and fittings
The impact on the furniture and fittings category of assets resulted in the decreased depreciation and accumulated depreciation by R10,846.
Computer Equipment
The impact on the computer equipment category of assets resulted in the decreased depreciation and accumulated depreciation by R45,352.
Software
The impact on the software category of assets resulted in the decreased depreciation and accumulated depreciation by R30,000
Office Equipment
The impact on the office equipment category of assets resulted in the decreased depreciation and accumulated depreciation by R7,800
Leasehold Improvement
The impact on the leasehold improvement category of assets resulted in the decreased depreciation and accumulated depreciation by R9,218
Production Equipment
The impact on the production equipment category of assets resulted in the decreased depreciation and accumulated depreciation by R7,000.
(Registration number M3/15/32 (834/15)) Annual Financial Statements for the year ended 31 March 2024
Figures in Rand
2024
2023
119 ANNUAL REPORT 2023/2024