Page 68 - Playhouse Annual Report 2021:22

Annual Financial Statements for the year ended 31 March 2022 Accounting Policies (continued)
1.18 Going concern
The going concern basis has been adopted in preparing the financial statements. Management have no reason to believe that the company will not be a going concern in the foreseeable future, based on funding commitment from the Department of Sport, Arts and Culture, forecasts and available cash and finance resources.
The Playhouse Company has received a funding allocation in terms of the MTEF from the Department of Sport, Arts and Culture for the next 3 years.
1.19 Deferred Income
Liabilities are raised for money received from conditional grants. The revenue from these grants are deferred until such time that the conditions
of the grant have been met. The grant liability decreases as the grant deferred revenue is realised.
1.20 Budgetary Information
The approved budget is prepared on a cash basis and presented by functional classification linked to performance outcome objectives, where possible. The approved budget covers the fiscal period from 1 April to 31 March. The financial statements and the budget are not on the same basis of accounting. The actual financial statement information is presented on a comparable basis to the budget information. The comparison and reconciliation between the statement of financial performance and the budget for the reporting period have been included in Statement of Comparison of Budget and Actual Amounts.
The net surplus per the statement of financial performance is reconciled to the budget surplus and the material differences, as determined by the materiality and significance framework, are explained in Statement of Comparison of Budget and Actual Amounts.
66 The Playhouse Company