Page 258 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 MARCH 2021
31 MARCH 2021

The Department is transferring funds (advances) to the Government Communication
Information System (GCIS) and the Department of International Relations and Cooperation in
respect of accommodation for trips abroad.

These advances are expensed once the respective departments paid the accounts on behalf of
the department and provide the necessary source documents to the department.
12 Loans and receivables
Loans and receivables are recognised in the statement of financial position at cost plus accrued
interest, where interest is charged, less amounts already settled or written-off. Write-offs are
made according to the department’s write-off policy.
With regard to Social Assistance debtors, write-offs are made according to the Policy on
Management of Social Assistance debtors as administered by the South African Social Security
Agency.

13 Investments
Investments are recognised in the statement of financial position at cost.
14 Financial assets

14.1 Financial assets (not covered elsewhere)
A financial asset is recognised initially at its cost-plus transaction costs that are directly
attributable to the acquisition or issue of the financial asset.
At the reporting date, a department shall measure its financial assets at cost, less amounts
already settled or written-off, except for recognised loans and receivables, which are measured
at cost plus accrued interest, where interest is charged, less amounts already settled or written-
off.

14.2 Impairment of financial assets
Where there is an indication of impairment of a financial asset, an estimation of the reduction
in the recorded carrying value, to reflect the best estimate of the amount of the future economic
benefits expected to be received from that asset, is recorded in the notes to the financial
statements.
15 Payables
Payables recognised in the statement of financial position are recognised at cost.
16 Capital Assets

16.1 Immovable capital assets
Immovable assets reflected in the asset register of the department are recorded in the notes to
the financial statements at cost or fair value where the cost cannot be determined reliably.
Immovable assets acquired in a non-exchange transaction are recorded at fair value at the date
of acquisition. Immovable assets are subsequently carried in the asset register at cost and are
not currently subject to depreciation or impairment.
Subsequent expenditure of a capital nature forms part of the cost of the existing asset when
ready for use.
Additional information on immovable assets not reflected in the assets register is provided in
the notes to financial statements.

258 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21