Page 337 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

REFUGEE RELIEF FUND

Notes To The Financial Statements Of The Refugee Relief Fund For The Year Ended
31 March 2021.

1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The annual financial statements have been prepared • IGRAP 9: Distributions of Non-cash Assets to
in accordance with the effective Standards of Owners
Generally Recognized Accounting Practice (GRAP) • IGRAP 10: Assets Received From Customers
including any interpretations, guidelines and • IGRAP 11: Consolidation – Special Purpose
directives issued by the Accounting Standards Board. Entities
• IGRAP 12: Jointly Controlled Entities – Non
The following are the principal accounting policies of Monetary Contributions by Ventures
the Fund which are, in all material respects, consistent • IGRAP 13: Operating Leases – Incentives
with those applied in the previous year, except as • IGRAP 14: Evaluating the Substance of
otherwise indicated. Transactions involving the Legal Form of a Lease
• IGRAP15: Revenue – Barter Transactions
1.1 BASIS OF PREPARATION involving Advertising Services
• IGRAP 16: Intangible Assets – Website Costs
The annual financial statements have been prepared
in accordance with the effective Standards of 1.2 CURRENCY
Generally Recognized Accounting Practice (GRAP)
including any interpretations, guidelines and These financial statements are presented in South
directives issued by the Accounting Standards Board. African Rands. All figures are rounded to the
nearest one rand.
1.1.1 The following approved Standards of GRAP have
been approved and issued by the Accounting 1.3. PROPERTY PLANT AND EQUIPMENT
Standards Board, but only become effective in the
future or have not been given an effective date by the Items of property, plant and equipment are initially
Minister of Finance. The fund has not early-adopted recognized as on acquisition date and are initially
any new Standards but has in some cases referred to recorded at cost.
them for guidance in developing appropriate
accounting policies in accordance with the 1.4. REVENUE RECOGNITION
requirements of Directive 5: Determining the GRAP
Reporting Framework: Revenue is recognized when it is probable that future
economic benefits will flow to the fund and these
• GRAP 20: Related Party Disclosures benefits can be measured reliably.
1.1.2 The following interpretations have also been
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.
1.4.1 Revenue from exchange transactions
• IGRAP 1: Applying the Probability Test on initial
Recognition of Revenue Revenue from exchange transactions refers to
• IGRAP 2: Changes in Existing Decommissioning revenue that accrued to the entity directly in return
Restoration and Similar Liabilities for services rendered or goods sold, the value of
• IGRAP 3: Determining Whether and Arrangement which approximates the consideration received or
Contains a Lease receivable.
• IGRAP 4: Rights to Interests Arising from Interest revenue is recognised on a time proportion
Decommissioning, Restoration and basis.
Environmental Rehabilitation Funds Revenue from the rental of facilities and equipment
• IGRAP 5: Applying the Restatement Approach is recognised on a straight-line basis over the term of
under the Standard of GRAP on Financial the lease agreement.
Reporting in Hyperinflationary Economies Revenue from the sale of goods is recognised when
• IGRAP 6: Loyalty Programmes substantially all the risks and rewards in those goods
• IGRAP 7: The Limit of a Defined Benefit Asset, is passed to the consumer.
Minimum Funding Requirements and their
Interaction
• IGRAP 8: Agreements for the Construction of
Assets from Exchange Transactions

337 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21