Page 232 - SAMRC Annual Report 2023-24

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
SIGNIFICANT ACCOUNTING POLICIES

1. Presentation of Annual Financial Statements

The annual financial statements have been prepared in accordance with the Standards of Generally Recognised
Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the
Public Finance Management Act (Act 1 of 1999).
These annual financial statements have been prepared on an accrual basis of accounting and are in accordance
with historical cost convention as the basis of measurement, unless specified otherwise. They are presented in
South African Rand, which is also the functional currency. The amounts presented in the annual financial statements
are rounded to the nearest Rand.

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or
conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted
by a Standard of GRAP.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these
annual financial statements, are disclosed below.
These accounting policies are consistent with the previous period.

1.1 Going concern assumption

These annual financial statements have been prepared based on the expectation that the entity will
continue to operate as a going concern for at least the next 12 months.

1.2 Materiality
Material omissions or misstatements of items are material if they could, individually or collectively, influence
the decisions or assessments of users made on the basis of the financial statements. Materiality depends
on the nature or size of the omission or misstatement judged in the surrounding circumstances. The nature
or size of the information item, or a combination of both, could be the determining factor.

Assessing whether an omission or misstatement could influence decisions of users, and so be material,
requires consideration of the characteristics of those users. The Framework for the Preparation and
Presentation of Financial Statements states that users are assumed to have a reasonable knowledge of
government, its activities, accounting and a willingness to study the information with reasonable diligence.
Therefore, the assessment takes into account how users with such attributes could reasonably be expected
to be influenced in making and evaluating decisions.
1.3 Significant judgements and sources of estimation uncertainty

In preparing the annual financial statements, management is required to make estimates and assumptions
that affect the amounts represented in the annual financial statements and related disclosures. Use of
available information and the application of judgement is inherent in the formation of estimates. Actual
results in the future could differ from these estimates which may be material to the annual financial
statements. Significant judgements include:

230 SAMRC ANNUAL REPOR T 2023-24