Page 90 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15))
Annual Financial Statements for the year ended 31 March 2024
1.11 Impairment of cash-generating assets (continued)
After the recognition of an impairment loss, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.
1.12 Share capital / contributed capital
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
1.13 Prepayments
The entity recognises an asset if it has prepaid an expense, but does not yet have a present obligation to pay that expenditure.
1.14 Employee benefits
Short-term employee benefits
Short-term employee benefits encompass all those benefits that become payable in the short term, i.e. within a financial year or within 12 month of the financial year. Therefore, short-term employee benefits include remuneration, compensated absences and bonuses.
Short-term employee benefits are recognised in the Statement of Financial Performance as services are rendered, except for non-accumulating benefits, which are recognised when the specific event occurs. These short-term employee benefits are measured at their undiscounted costs in the period the employee renders the related service or the specific event occurs.
Defined contribution plans
The entity operates a defined contribution plan in the form of a provident fund scheme, covering all qualifying employees. The assets of the scheme are held separately from those of the entity and are administered by the scheme’s trustees. The entity’s contributions to the defined contribution fund are included in the staff costs and charged to the Statement of Financial Performance during the year to which they relate.
1.15 Provisions and contingencies
Provisions are recognised when:
• the entity has a present obligation as a result of a past event;
• it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the
obligation; and
• a reliable estimate can be made of the obligation.
The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.
Where the effect of time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.
The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.
ANNUAL REPORT 2023/2024 88