Page 253 - SAMRC Annual Report 2023-24

FINANCIAL INFORMATION

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

(CONTINUED)

1.18 Revenue from exchange transactions (continued)

Interest, royalties and dividends
Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar
distributions is recognised when:
• It is probable that the economic benefits or service potential associated with the transaction will flow
to the entity, and
• The amount of the revenue can be measured reliably.
Interest is recognised, in surplus or deficit, using the effective interest rate method.

Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.

Dividends or their equivalent distributions are recognised, in surplus or deficit, when the entity’s right to
receive payment has been established.

Service fees included in the price of the product are recognised as revenue over the period during which
the service is performed.

1.19 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an
entity, which represents an increase in net assets, other than increases relating to contributions from owners.

Conditions on transferred assets are stipulations that specify that the future economic benefits or service
potential embodied in the asset is required to be consumed by the recipient as specified or future economic
benefits or service potential must be returned to the transferor.

Control of an asset arise when the entity can use or otherwise benefit from the asset in pursuit of its
objectives and can exclude or otherwise regulate the access of others to that benefit.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities
extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services,
or use of assets) to another entity in exchange.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange
transaction, an entity either receives value from another entity without directly giving approximately equal
value in exchange, or gives value to another entity without directly receiving approximately equal value in
exchange.

Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon
the use of a transferred asset by entities external to the reporting entity.

Recognition
An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue,
except to the extent that a liability is also recognised in respect of the same inflow.

As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources
from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability
recognised and recognises an amount of revenue equal to that reduction.

SAMRC ANNUAL REPOR T 2023-24 251