Page 51 - SABN AR 2021

The banknote production and sale order is done on a monthly basis and invoiced upon delivery. As the period of time between customer payment and performance will always be one year or less, the SABN applies the practical expedient in IFRS 15.63 and does not adjust the promised amount of consideration for the effects of financing. A portion of the income from the supply of banknotes to the SARB does not meet the definition of a lease. This revenue is accounted for in terms of IFRS 15, Revenue from Contracts with Customers.
All foreign exchange variations on the purchase of substrate and/or inks against the budget are either recovered or rebated to the SARB. The nature of this arrangement is in substance a change in the transaction price and it is recognised as income.
Interest income
Interest income is recognised as it accrues on a time-proportion basis, taking account of the effective yield on the assets over the period in which they are held. Interest is recognised in the statement of comprehensive income for all interest-bearing instruments on an accrual basis using the effective rate of interest method. This income is accounted for in terms of IFRS 9.
1.13 Foreign exchange transactions
Transactions in foreign currencies are recorded at the rates of exchange ruling at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the statement of financial position date. Foreign currency gains and losses are accounted for in profit or loss.
South African Bank Note Company (RF) Proprietary Limited
Annual Report 2021
51