Page 254 - SAMRC Annual Report 2023-24

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

(CONTINUED)

1.19 Revenue from non-exchange transactions (continued)

Measurement
Revenue from a non-exchange transaction is measured at the amount of the increase in net assets
recognised by the entity.

When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue
equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also
required to recognise a liability. Where a liability is required to be recognised it will be measured as the
best estimate of the amount required to settle the obligation at the reporting date, and the amount of the
increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because the
taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised
as revenue.

Gifts and donations, including goods in-kind
Gifts and donations, including goods in-kind, are recognised as assets and revenue when it is probable
that the future economic benefits or service potential will flow to the entity and the fair value of the assets
can be measured reliably.

Services in-kind
The entity recognise services in-kind that are significant to its operations and/or service delivery objectives
as assets and recognise the related revenue when it is probable that the future economic benefits or
service potential will flow to the entity and the fair value of the assets can be measured reliably.

Where services in-kind are not significant to the entity’s operations and/or service delivery objectives and/
or do not satisfy the criteria for recognition, the entity has not disclosed the nature and type of services
in-kind received during the reporting period.

1.20 Revenue recognition for exchange and non-exchange
transactions

Revenue represents the parliamentary grant from government as well as external income.

Parliamentary grant (Revenue from non-exchange transactions)
Government grants are recognised when it is probable that the future economic benefit will flow to the
SAMRC and these benefits can be measured reliably. The grant is recognised to the extent that there are no
further obligations arising from the receipt of the grant. Government grants are assistance by government
in the form of transfer of resources in return for compliance with conditions related to operating activities.
Grants that compensate the SAMRC for expenses incurred are recognised in surplus or deficit in the same
periods in which the expense is recognised.

Revenue other than grants, donations, project revenue and council
activities (Revenue from exchange transactions)
Revenue is recognised on the accrual basis. Revenue is recognised when significant risks and rewards of
ownership have been transferred.

Research revenue
Revenue is recognised only to the extent of research costs incurred and is probable that it will be
recoverable. Advance income received in respect of which no work has been done, is treated as deferred
income until such time the expenditure is incurred or the conditions of the grant/contract are met.

252 SAMRC ANNUAL REPOR T 2023-24