Page 240 - SAMRC Annual Report 2023-24

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

(CONTINUED)

1.8 Financial instruments (continued)
– non-derivative financial assets or financial liabilities with fixed or determinable payments that are
designated at fair value at initial recognition; and
– financial instruments that do not meet the definition of financial instruments at amortised cost or
financial instruments at cost.

Classification
The entity has the following types of financial assets (classes and category) as reflected on the face of the
statement of financial position or in the notes thereto:

CLASS CATEGORY
Trade debtors Financial asset measured at amortised cost
Shares Held for trading at fair value
Unit trusts Held for trading at fair value
Cash and cash equivalents Financial asset measured at amortised cost
Loans and receivables Financial asset measured at amortised cost
Employee costs in advance Financial asset measured at amortised cost
Deposits Financial asset measured at amortised cost

The entity has the following types of financial liabilities (classes and category) as reflected on the face of
the statement of financial position or in the notes thereto:

CLASS CATEGORY
Trade payables Financial liabilities measured at amortised cost

Initial recognition
The entity recognises a financial asset or a financial liability in its statement of financial position when the
entity becomes a party to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities
The entity measures a financial asset and financial liability initially at its fair value plus, in the case of a
financial asset or a financial liability not subsequently measured at fair value, transaction costs that are
directly attributable to the acquisition or issue of the financial asset or financial liability.

Subsequent measurement of financial assets and financial liabilities
The entity measures all financial assets and financial liabilities after initial recognition using the
following categories:
• Financial instruments at fair value.
• Financial instruments at amortised cost.
All financial assets measured at amortised cost, or cost, are subject to an impairment review. The factors taken
into account when considering impairment are solvency and whether the account holder is a slow payer.

238 SAMRC ANNUAL REPOR T 2023-24