Page 102 - KZN Film A Report

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15))
Annual Financial Statements for the year ended 31 March 2021
Notes to the Financial Statements (continued)
40. Prior period errors
Property, plant and equipment
Property, plant and equipment useful life of assets was not assessed to reflect the benefit of using the assets. The useful lives and residual values were not appropriately considered.
Assets useful life were not assessed during prior year periods while the information was available to consider the assessment. This resulted in assets being fully deprecated while they were still being utilised and the economic benefit still being derived from the assets.
Accruals
An error occurred in the accounting of accruals in the prior period, as purchase orders were used to raise a present obligation without evidence of services having rendered/goods delivered.
Operating leases
An error occurred during the previous financial years where straight-lining of operating lease rentals in the prior period financial statements was not performed as per standard requirement.
Interest accrued - earned
An error occurred during the previous financial year, as prior year interest earned on the bank balance was not accounted for in the prior period but was accounted for in the current period.
Figures in Rand
2021
2020
The correction of the error(s) results in adjustments as follows:
Statement of financial position 31 March 2020
Accumulated Depreciation - (Decrease) (188,977) Accruals - (Decrease) (279,206) Operating lease - Liability - (Decrease)/increase (227,523) Opening Accumulated Surplus or Deficit - (decrease) - Debtors - Increase (245,402)
Statement of financial performance 31 March 2020
Depreciation expense - (Decrease) (188,977) Operating expenses - (Decrease) (279,206) Rental expense - (Decrease) (227,523) Interest received - (increase) (245,402)
Fruitless and wasteful expenditure
Opening balance 117,271 Adjustments made (19,430 Restated opening balance
1 April 2019
216,704 - 639,345 (422,641) -
1 April 2019
- - - -
-
-
Adjustment made to opening balance of fruitless and wasteful expenditure is due to correction made to amount incorrectly classified as wasteful expenditure instead of Irregular expenditure.
97,841 -
100
KZN FILM COMMISSION ANNUAL REPORT 2020/2021