Page 247 - DSD ANNUAL REPORT 2022-2

PART E: FINANCIAL INFORMATION DISASTER RELIEF FUND
Notes to the Financial Statements of the Disaster Relief Fund for the year
ended 31 March 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The annual financial statements have been prepared in accordance * IGRAP 12: Jointly Controlled Entities – Non-Monetary Con-
with the effective Standards of Generally Recognised Accounting tributions by Ventures
Practices (GRAP) including any interpretations, guidelines and * IGRAP 13: Operating Leases – Incentives
directives issued by the Accounting Standards Board. * IGRAP 14: Evaluating the Substance of Transactions involv-
The following are the principal accounting policies of the Fund ing the Legal Form of a Lease
which are, in all material respects, consistent with those applied in * IGRAP15: Revenue – Barter Transactions involving Adver-
the previous year, except as otherwise indicated. tising Services
* IGRAP 16: Intangible Assets – Website Costs
1.1 BASIS OF PREPARATION * IGRAP 17: Interpretation of the Standard of GRAP on Ser-
The annual financial statements have been prepared in vice Concession Arrangements where a Grantor Controls a
accordance with the effective Standards of Generally Recognised Significant Residual Interest in an asset.
Accounting Practices (GRAP) including any interpretations,
guidelines and directives issued by the Accounting Standards 1.2 CURRENCY
Board. These financial statements are presented in South African
Rands. All figures are rounded to the nearest one thousand.
1. The following approved Standards of GRAP have been approved
and issued by the Accounting Standards Board, but only become 1.3 REVENUE RECOGNITION
effective in the future or have not been given an effective date Revenue is recognised when it is probable that future
by the Minister of Finance. The Fund has not early-adopted economic benefits will flow to the Fund and these benefits
any new Standards but has in some cases referred to them can be measured reliably.
for guidance in developing appropriate accounting policies in Interest income is accrued on a time proportion basis,
accordance with the requirements of Directive 5: Determining taking into account the principal outstanding and the
the GRAP Reporting Framework: effective interest rate over the period to maturity.
Income from donations and grants is included in the grant
* GRAP 18: Segment Reporting income when these are received.
* GRAP 20: Related Party Disclosures
* GRAP 32: Service Concession Arrangements: Grantor 1.4 INVESTMENTS
* GRAP 105: Transfer of Function Between Entities Under Investments are shown at cost including interest capitalised.
Common Control
* GRAP 106: Transfer of Function Between Entities Not Under 1.5 COMPARATIVE FIGURES
Common Control Where necessary, comparative figures have been adjusted
* GRAP 107: Mergers to conform to changes in presentation in the current year.
* GRAP 108: Statutory Receivables
1.6 FINANCIAL INSTRUMENTS
1.1.1 The following interpretations have also been issued and are Recognition
expected to have an insignificant impact on the financial Financial assets and liabilities are recognised in the balance
statements since they generally reflect the interpretations sheet when the Fund becomes a party to the contractual
and principles that are already established under IFRS. provisions of the instrument.

* IGRAP 1: Applying the Probability Test on initial Recogni- Measurement
tion of Revenue Financial instruments are initially measured at cost, which
* IGRAP 2: Changes in Existing Decommissioning Resto- includes transaction costs. After initial recognition, these
ration and Similar Liabilities instruments are measured as set out below.
* IGRAP 3: Determining Whether an Arrangement Contains a
Lease Financial assets
* IGRAP 4: Rights to Interests Arising from Decommissioning, The Fund's principal financial assets are cash and cash
Restoration and Environmental Rehabilitation Funds equivalents.
* IGRAP 5: Applying the Restatement Approach under the
Standard of GRAP on Financial Reporting in Hyperinflation- Investments
ary Economies The investments are measured at subsequent reporting
* IGRAP 6: Loyalty Programmes dates at amortised cost by using the effective interest rate
* IGRAP 7: The Limit of a Defined Benefit Asset, Minimum method if they have a fixed maturity or at cost if there is
Funding Requirements and their Interaction no fixed maturity.
* IGRAP 8: Agreements for the Construction of Assets from
Exchange Transactions Trade and other receivables
* IGRAP 9: Distributions of Non-cash Assets to Owners Trade and other receivables are stated at their normal
* IGRAP 10: Assets Received from Customer value as reduced by appropriate allowances for estimated
* IGRAP 11: Consolidation – Special Purpose Entities irrecoverable amounts.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22 247