Page 324 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

DISASTER RELIEF FUND

Notes To The Financial Statements Of The Disaster Relief Fund For The Year Ended
31 March 2021.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The annual financial statements have been prepared • IGRAP 5: Applying the Restatement Approach
in accordance with the effective Standards of under the Standard of GRAP on Financial Report-
Generally Recognised Accounting Practices (GRAP) ing in Hyperinflationary Economies
including any interpretations, guidelines and • IGRAP 6: Loyalty Programmes
directives issued by the Accounting Standards Board. • IGRAP 7: The Limit of a Defined Benefit Asset,
Minimum Funding Requirements and their Interac-
The following are the principal accounting policies of tion
the Fund which are, in all material respects, • IGRAP 8: Agreements for the Construction of
consistent with those applied in the previous year, Assets from Exchange Transactions
except as otherwise indicated. • IGRAP 9: Distributions of Non-cash Assets to
Owners
1.1 BASIS OF PREPARATION • IGRAP 10: Assets Received from Customers
The annual financial statements have been prepared • IGRAP 11: Consolidation – Special Purpose
in accordance with the effective Standards of Entities
Generally Recognised Accounting Practices (GRAP) • IGRAP 12: Jointly Controlled Entities – Non
including any interpretations, guidelines and Monetary Contributions by Ventures
directives issued by the Accounting Standards Board. • IGRAP 13: Operating Leases – Incentives
• IGRAP 14: Evaluating the Substance of Transac-
1.1.1 The following approved Standards of GRAP have tions involving the Legal Form of a Lease
been approved and issued by the Accounting • IGRAP15: Revenue – Barter Transactions involving
Standards Board, but only become effective in the Advertising Services
future or have not been given an effective date by the • IGRAP 16: Intangible Assets – Website Costs
Minister of Finance. The fund has not early-adopted • IGRAP 17: Interpretation of the Standard of GRAP
any new Standards but has in some cases referred to on Service Concession Arrangements where a
them for guidance in developing appropriate Grantor Controls a Significant Residual Interest
accounting policies in accordance with the in an asset.
requirements of Directive 5: Determining the GRAP
Reporting Framework: 1.2 CURRENCY
These financial statements are presented in South
• GRAP 18: Segment Reporting African Rands. All figures are rounded to the nearest
• GRAP 20: Related Party Disclosures one thousand.
• GRAP 32: Service Concession Arrangements:
Grantor 1.3 PROPERTY PLANT AND EQUIPMENT
• GRAP 105: Transfer of Function Between Entities Items of property, plant and equipment are initially
Under common Control recognised as on acquisition date and are initially
• GRAP 106: Transfer of Function Between Entities recorded at cost.
Not Under common Control
• GRAP 107: Mergers 1.4 REVENUE RECOGNITION
• GRAP 108: Statutory Receivables Revenue is recognised when it is probable that future
economic benefits will flow to the fund and these
1.1.2 The following interpretations have also been benefits can be measured reliably.
issued and are expected to have an insignificant Interest income is accrued on a time proportion basis,
impact on the financial statements, since they taking into account the principal outstanding and the
generally reflect the interpretations and principles effective interest rate over the period to maturity.
already established under IFRS. Income from donations and grants are included in
the grant income when these are received.
• IGRAP 1: Applying the Probability Test on initial
Recognition of Revenue 1.6. INVESTMENTS
• GRAP 2: Changes in Existing Decommissioning Investments are shown at cost including interest
Restoration and Similar Liabilities capitalised.
• IGRAP 3: Determining Whether and Arrangement
Contains a Lease 1.7. COMPARATIVE FIGURES
• IGRAP 4: Rights to Interests Arising from Where necessary, comparative figures have been
Decommissioning, Restoration and Environmental adjusted to conform to changes in presentation in
Rehabilitation Funds the current year.

324 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21