Page 325 - 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.

1.8 FINANCIAL INSTRUMENTS 1.12. Revenue

Recognition 1.12.1 Revenue from exchange transactions
Financial assets and liabilities are recognised in the Revenue from exchange transactions refers to
balance sheet when the Fund becomes a party to the revenue that accrued to the entity directly in
contractual provisions of the instrument. return for services rendered or goods sold, the
value of which approximates the consideration
Measurement received or receivable.
Financial instruments are initially measured at cost,
which includes transaction cost. Subsequent to Interest revenue is recognised on a time
initial recognition these instruments are measured proportion basis.
as set out below.
Revenue from the rental of facilities and
Financial assets equipment is recognised on a straight-line basis
The Fund’s principal financial assets are cash and over the term of the lease agreement.
cash equivalents.
Revenue from the sale of goods is recognised
Investments when substantially all the risks and rewards in
The investments are measured at subsequent those goods is passed to the consumer.
reporting dates at amortised cost by using the
effective interest rate method if they have a fixed 1.12.2 Revenue from non-exchange transactions
maturity or at cost if there is no fixed maturity. Revenue from non-exchange transactions refers
to transactions where the entity received revenue
Trade and other receivables from another entity without directly giving
Trade and other receivables are stated at their approximately equal value in exchange. Revenue
normal value as reduced by appropriate allowances from non-exchange transactions is generally
for estimated irrecoverable amounts. recognised to the extent that the related receipt
or receivable qualifies for recognition as an asset
Cash and cash equivalents and there is no liability to repay the amount.
Cash and cash equivalents comprise cash on hand
and investments. Cash and cash equivalents are Revenue from the recovery of unauthorised,
measured at fair value. irregular, fruitless and wasteful expenditure is
based on legislated procedures.
Financial Liabilities
The Fund’s principle financial liabilities are accounts 1.12.3 Grants, transfers and donations
payable. Grants, transfers and donations received or
All financial liabilities are measured at amortised receivable are recognised when the resources
cost, comprising original debt less principle that have been transferred meet the criteria for
payments and amortisations. recognition as an asset. A corresponding liability
is raised to the extent that the grant, transfer or
1.9 EXPENDITURE donation is conditional.
Expenditure is accounted for on the accrual basis of
accounting. The liability is transferred to revenue as and when
the conditions attached to the grant are met.
1.10 Provisions Grants without any conditions attached are
Provisions are recognized when the entity has a recognised as revenue when the asset is
present or constructive obligation as a result of past recognised.
events, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate of the
provision can be made.

Provisions are reviewed at reporting date and
adjusted to reflect the current best estimate.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 325