Page 350 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

SOCIAL RELIEF FUND

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

The annual financial statements have been prepared in • IGRAP 9: Distributions of Non-cash Assets to Owners 1.4.2 Revenue from non-exchange transactions 1.7.5 Trade and other receivables
accordance with the effective Standards of Generally • IGRAP 10: Assets Received from Customers Revenue from non-exchange transactions refers to Trade and other receivables are stated at their
Recognised Accounting Practice (GRAP) including any • IGRAP 11: Consolidation – Special Purpose Entities transactions where the entity received revenue from normal value as reduced by appropriate allowances
interpretations, guidelines and directives issued by the • IGRAP 12: Jointly Controlled Entities – Non-Monetary another entity without directly giving approximately for estimated irrecoverable amounts.
Accounting Standards Board. Contributions by Ventures equal value in exchange. Revenue from
• IGRAP 13: Operating Leases – Incentives non-exchange transactions is generally recognised 1.7.6 Cash and cash equivalents
The following are the principal accounting policies of • IGRAP 14: Evaluating the Substance of Transactions to the extent that the related receipt or receivable Cash and cash equivalents are measured at fair
the Fund which are, in all material respects, consistent involving the Legal Form of a Lease qualifies for recognition as an asset and there is no value.
with those applied in the previous year, except as • IGRAP 15 : Revenue – Barter Transactions involving liability to repay the amount.
otherwise indicated. Advertising Services Revenue from the recovery of unauthorised, 1.7.7 Financial Liabilities
• IGRAP 16: Intangible Assets – Website Costs irregular, fruitless and wasteful expenditure is based The Fund’s principle financial liabilities are accounts
1.1 BASIS OF PREPARATION on legislated procedure payable. All financial liabilities are measured at
1.2 CURRENCY amortised cost, comprising original debt less
The annual financial statements have been prepared in These financial statements are presented in South 1.5. INVESTMENTS principle payments and amortisations.
accordance with the effective Standards of Generally African Rands. All figures are rounded to the nearest Investments are shown at cost including interest
Recognised Accounting Practice (GRAP) including any one thousand. capitalized. 1.8 EXPENDITURE
interpretations, guidelines and directives issued by the Expenditure is accounted for on the accrual basis of
Accounting Standards Board. 1.3. PROPERTY PLANT AND EQUIPMENT 1.6. COMPARATIVE FIGURES accounting.
Items of property, plant and equipment are initially Where necessary, comparative figures have been
1.1.1 The following approved Standards of GRAP have recognised as on acquisition date and are initially adjusted to conform to changes in presentation in
been approved and issued by the Accounting Standards recorded at cost. the current year.
Board, but only become effective in the future or have
not been given an effective date by the Minister of 1.4. REVENUE RECOGNITION 1.7. FINANCIAL INSTRUMENTS
Finance. The fund has not early-adopted any new Revenue is recognised when it is probable that
Standards but has in some cases referred to them for future economic benefits will flow to the fund and 1.7.1 Recognition
guidance in developing appropriate accounting policies these benefits can be measured reliably. Financial assets and liabilities are recognized in the
in accordance with the requirements of Directive 5: balance sheet when the Fund becomes a party to the
Determining the GRAP Reporting Framework: Interest income is accrued on a time proportion contractual provisions of the instrument.
basis, taking into account the principal outstanding
• GRAP 20: Related Party Disclosures and the effective interest rate over the period to 1.7.2 Measurement
1.1.2 The following interpretations have also been maturity. Financial instruments are initially measured at fair
issued and are expected to have an insignificant value which includes transaction cost. Subsequent to
impact on the financial statements, since they 1.4.1 Revenue from exchange transactions initial recognition these instruments are measured
generally reflect the interpretations and principles Revenue from exchange transactions refers to as set out below.
already established under IFRS. revenue that accrued to the entity directly in return
for services rendered or goods sold, the value of 1.7.3 Financial assets
• IGRAP 1: Applying the Probability Test on initial which approximates the consideration received or The Fund’s principal financial assets are investments.
Recognition of Revenue receivable. All financial assets are measured at amortised cost,
• IGRAP 2: Changes in Existing Decommissioning comprising original debt less principle payments and
Restoration and Similar Liabilities Interest revenue is recognised on a time proportion amortisations.
• IGRAP 3: Determining Whether an Arrangement basis.
Contains a Lease 1.7.4 Investments
• IGRAP 4: Rights to Interests Arising from Revenue from the rental of facilities and equipment The investments are measured at subsequent
Decommissioning, Restoration and Environmental is recognised on a straight-line basis over the term of reporting dates at amortised cost by using the
Rehabilitation Funds the lease agreement. effective interest rate method if they have a fixed
• IGRAP 5: Applying the Restatement Approach under maturity or at cost if there is no fixed maturity.
the Standard of GRAP on Financial Reporting in Revenue from the sale of goods is recognised when
Hyperinflationary Economies substantially all the risks and rewards in those goods
• IGRAP 6: Loyalty Programmes is passed to the consumer.
• IGRAP 7: The Limit of a Defined Benefit Asset,
Minimum Funding Requirements and their
Interaction
• IGRAP 8: Agreements for the Construction of Assets
from Exchange Transactions

350 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21