Page 237 - SAMRC Annual Report 2023-24

FINANCIAL INFORMATION

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

(CONTINUED)

1.5 Property, plant and equipment (continued)
The gain or loss arising from the derecognition of an item of property, plant and equipment is included
in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an
item of property, plant and equipment is determined as the difference between the net disposal proceeds,
if any, and the carrying amount of the item.

Assets which the entity sells via auction when it is obsolete or can no longer be used by the entity, are not
accounted for as current assets held for sale. Proceeds from sales of these assets are recognised as profit or
loss on disposal of assets. All cash flows on these assets are included in cash flows from investing activities
in the cash flow statement.

Reviewing the impairment of assets is performed on an annual basis. Assets impaired as a result of
restructuring are not accounted for as non-current assets held for sale as these assets will be transferred to
institutions of higher learning.

The entity separately discloses expenditure to repair and maintain property, plant and equipment in the
notes to the financial statements (see note 10).

1.6 Intangible assets
An asset is identifiable if it either:
• is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed,
rented or exchanged, either individually or together with a related contract, identifiable assets or
liability, regardless of whether the entity intends to do so; or
• arises from contractual rights or other legal rights, regardless of whether those rights are transferable
or separable from the entity or from other rights and obligations

An intangible asset is recognised when:
• it is probable that the expected future economic benefits or service potential that are attributable to
the asset will flow to the entity; and
• the cost or fair value of the asset can be measured reliably.
Intangible assets are initially recognised at cost.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of
acquisition is measured at its fair value as at that date.
Intangible assets are carried at cost less any accumulated amortisation and any impairment losses. For all
intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting
date and any change is accounted for as a change in estimate.

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