Page 277 - DSD ANNUAL REPORT 2022-2

T
E: FINANCIAL
AR
P
INFORMA
STATE PRESIDENT FUND PART E: FINANCIAL INFORMATION
TION
Notes to the Financial Statements of the State President Fund for the year ended 31 March 2022
1. SUMMARY OF SIGNIFICANT ACCOUNTING * IGRAP 12: Jointly Controlled Entities – Non-Monetary
POLICIES Contributions by Ventures
* IGRAP 13: Operating Leases – Incentives
The annual financial statements have been prepared in * IGRAP 14: Evaluating the Substance of Transactions in-
accordance with the effective Standards of Generally Recognized volving the Legal Form of a Lease
Accounting Practice (GRAP) including any interpretations,
guidelines and directives issued by the Accounting Standards * IGRAP15 – Revenue – Barter Transactions involving Ad-
Board. vertising Services
* IGRAP 16: Intangible Assets – Website Costs
The following are the principal accounting policies of the * IGRAP 17: Interpretation of the Standard of GRAP on
Fund which are, in all material respects, consistent with those Service Concession Arrangements where a Grant-
applied in the previous year, except as otherwise indicated. or Controls a Significant Residual Interest in an asset.

1.1 BASIS OF PREPARATION 1.2 CURRENCY
The annual financial statements have been prepared in These financial statements are presented in South African
accordance with the effective Standards of Generally Recognized Rands. All figures are rounded to the nearest one thousand.
Accounting Practice (GRAP) including any interpretations,
guidelines and directives issued by the Accounting Standards 1.3. REVENUE RECOGNITION
Board. Revenue is recognized when it is probable that future
economic benefits will flow to the Fund and these benefits
1.1.1 The following approved Standards of GRAP have been can be measured reliably.
approved and issued by the Accounting Standards Board, but
only become effective in the future or have not been given Interest income is accrued on a time proportion basis, taking
an effective date by the Minister of Finance. The Fund has into account the principal outstanding and the effective
not early-adopted any new Standards but has in some cases interest rate over the period to maturity.
referred to them for guidance in developing appropriate
accounting policies in accordance with the requirements of 1.3.1 Revenue from exchange transactions
Directive 5: Determining the GRAP Reporting Framework: Revenue from exchange transactions refers to revenue that
accrued to the entity directly in return for services rendered or
* GRAP 20: Related Party Disclosures goods sold, the value of which approximates the consideration
received or receivable.
1.1.2 The following interpretations have also been issued and are Interest revenue is recognised on a time proportion basis.
expected to have an insignificant impact on the financial Revenue from the rental of facilities and equipment is
statements since they generally reflect the interpretations recognised on a straight-line basis over the term of the lease
and principles that are already established under IFRS. agreement.
Revenue from the sale of goods is recognised when
substantially all the risks and rewards in those goods is passed
* IGRAP 1: Applying the Probability Test on initial Recog-
nition of Revenue to the consumer.
* IGRAP 2: Changes in Existing Decommissioning Resto- 1.3.2 Revenue from non-exchange transactions
ration and Similar Liabilities Revenue from non-exchange transactions refers to
* IGRAP 3: Determining Whether an Arrangement Contains transactions where the entity received revenue from another
a Lease entity without directly giving approximately equal value
* IGRAP 4: Rights to Interests Arising from Decommission- in exchange. Revenue from non-exchange transactions is
ing, Restoration and Environmental Rehabilitation Funds generally recognised to the extent that the related receipt or
receivable qualifies for recognition as an asset and there is no
* IGRAP 5: Applying the Restatement Approach under the liability to repay the amount.
Standard of GRAP on Financial Reporting in Hyperinfla- Revenue from the recovery of unauthorised, irregular, fruitless
tionary Economies
and wasteful expenditure is based on legislated procedures.
* IGRAP 6: Loyalty Programmes
* IGRAP 7: The Limit of a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction 1.4 INVESTMENTS
Investments are shown at cost including interest capitalized.
* IGRAP 8: Agreements for the Construction of Assets from
Exchange Transactions
1.5 COMPARATIVE FIGURES
* IGRAP 9: Distributions of Non-cash Assets to Owners Where necessary, comparative figures have been adjusted to
* IGRAP 10: Assets Received from Customers conform to changes in presentation in the current year.
* IGRAP 11: Consolidation - Special Purpose Entities

277 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22