Page 194 - WCPP Annual Report 2021-22_Draft #7.6.2

Annual Report for the 2021/22 Financial Year
Vote 2: Western Cape Provincial Parliament
Part E: Financial Information for the year ended 31 March 2022

Notes to the Annual Financial Statements

38. Change in estimate

Property, plant and equipment

Property, plant and equipment: A review of useful lives was done on assets, during which, certain items of property, plant and
equipment were identified which required an adjustment. The Western Cape Provincial Parliament’s management considered how
to account for the change in the estimated useful lives. The effect of a change in accounting estimate is required to be
recognised prospectively by including it in surplus or deficit in the period of the change, if the change effects that period only, or the
period of the change in future periods, if the change effects both. Management concluded that it should apply the change in
estimate prospectively from the start of 2020/21 and therefore the depreciation charge was applied prospectively from 1 April 2020
over the remaining useful life of these assets.
2021/2022 2022/2023

Increase\(Decrease) in Depreciation on Computer equipment (19,929) 24,365
Increase\(Decrease) in Depreciation on Furniture and office equipment (33,516) 39,350
Increase\(Decrease) in Depreciation on Other machinery and equipment (20,629) 25,639

(74,074) 89,354

The effect on the current year is to increase the carrying amount of property, plant and equipment by R 74,074 and decrease the
depreciation expense by R 74,074.

39. Going concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This
basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of
liabilities, contingent obligations and commitments will occur in the ordinary course of business.

40. Events after the reporting date
During the period after the submission of the Annual Financial Statements, the approval was made for the increase of Members

Remuneration for the period ended 31 March 2022. The approval by the Premier of the Western Cape was done on 29 June
2022 and the Annual Financial Statements have been adjusted for this accordingly.

Annual Report for 2021/22 Financial Year Page 179