Page 267 - DSD ANNUAL REPORT 2022-2

SOCIAL RELIEF FUND PART E: FINANCIAL INFORMATION

Notes to the Financial Statements of the Social Relief Fund for the year Y ear
elief Fund For
efuge
The R
e R
The Financial Stat
ements
Notes To The Financial Statements Of The Refugee Relief Fund For The Year
Of
es
The
T
o
Not
ended 31 March 2022
Ended 31 March 2022
Ended 31 March 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING 1.2 CURRENCY
POLICIES These financial statements are presented in South African
Rands. All figures are rounded to the nearest one thousand.
The annual financial statements have been prepared in
accordance with the effective Standards of Generally 1.3 REVENUE RECOGNITION
Recognized Accounting Practice (GRAP) including any Revenue is recognized when it is probable that future
interpretations, guidelines and directives issued by the economic benefits will flow to the Fund and these benefits can
Accounting Standards Board. be measured reliably.
The following are the principal accounting policies of the Interest income is accrued on a time proportion basis, taking
Fund which are, in all material respects, consistent with those into account the principal outstanding and the effective
applied in the previous year, except as otherwise indicated. interest rate over the period to maturity.
1.1 BASIS OF PREPARATION 1.3.1 Revenue from exchange transactions
The annual financial statements have been prepared in Revenue from exchange transactions refers to revenue that is
accordance with the effective Standards of Generally Recognized accrued to the entity directly in return for services rendered or
Accounting Practice (GRAP) including any interpretations, goods sold, the value of which approximates the consideration
guidelines and directives issued by the Accounting Standards received or receivable.
Board. Interest revenue is recognised on a time proportion basis.
Revenue from the rental of facilities and equipment is
1.1.1 The following approved Standards of GRAP have been recognised on a straight-line basis over the term of the lease
approved and issued by the Accounting Standards Board, but agreement.
only become effective in the future or have not been given Revenue from the sale of goods is recognised when
an effective date by the Minister of Finance. The Fund has substantially all the risks and rewards in those goods is passed
not early-adopted any new Standards but has in some cases to the consumer.
referred to them for guidance in developing appropriate
accounting policies in accordance with the requirements of 1.3.2 Revenue from non-exchange transactions
Directive 5: Determining the GRAP Reporting Framework: Revenue from non-exchange transactions refers to transactions
where the entity received revenue from another entity without
* GRAP 20: Related Party Disclosures directly giving approximately equal value in exchange. Revenue
from non-exchange transactions is generally recognised to
1.2 The following interpretations have also been issued and are the extent that the related receipt or receivable qualifies for
expected to have an insignificant impact on the financial recognition as an asset and there is no liability to repay the
statements since they generally reflect the interpretations amount.
and principles that are already established under IFRS. Revenue from the recovery of unauthorised, irregular, fruitless
* IGRAP 1: Applying the Probability Test on initial and wasteful expenditure is based on legislated procedure.
Recognition of Revenue
* IGRAP 2: Changes in Existing Decommissioning 1.4 INVESTMENTS
Restoration and Similar Liabilities Investments are shown at cost including interest capitalized.
* IGRAP 3: Determining Whether an Arrangement Contains
a Lease
* IGRAP 4: Rights to Interests Arising from 1.5 COMPARATIVE FIGURES
Decommissioning, Restoration and Environmental Where necessary, comparative figures have been adjusted to
Rehabilitation Funds conform to changes in presentation in the current year.
* IGRAP 5: Applying the Restatement Approach under
the Standard of GRAP on Financial Reporting in 1.6 FINANCIAL INSTRUMENTS
Hyperinflationary Economies
* IGRAP 6: Loyalty Programmes 1.6.1 Recognition
* IGRAP 7: The Limit of a Defined Benefit Asset, Minimum Financial assets and liabilities are recognized in the balance
Funding Requirements and their Interaction sheet when the Fund becomes a party to the contractual
* IGRAP 8: Agreements for the Construction of Assets from provisions of the instrument.
Exchange Transactions
* IGRAP 9: Distributions of Non-cash Assets to Owners
* IGRAP 10: Assets Received from Customers 1.6.2 Measurement
* IGRAP 11: Consolidation – Special Purpose Entities Financial instruments are initially measured at fair value
* IGRAP 12: Jointly Controlled Entities – Non-Monetary which includes transaction cost. After initial recognition, these
Contributions by Ventures instruments are measured as set out below.
* IGRAP 13: Operating Leases – Incentives
* IGRAP 14: Evaluating the Substance of Transactions 1.6.3 Financial assets
involving the Legal Form of a Lease The Fund’s principal financial assets are investments.
* IGRAP 15: Revenue – Barter Transactions involving All financial assets are measured at amortized cost, comprising
Advertising Services original debt less principal payments and amortizations.
* IGRAP 16: Intangible Assets – Website Costs
267 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22