Page 258 - SAMRC Annual Report 2023-24

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

(CONTINUED)

1.28 Budget information
General purpose financial reporting by entity shall provide information on whether resources were obtained
and used in accordance with the legally adopted budget.

The approved budget is prepared on an accrual basis and presented by functional classification linked to
performance outcome objectives.

The approved budget covers the fiscal period from 01-Apr-23 to 31-Mar-24.

The annual financial statements and the budget are on the same basis of accounting therefore a comparison
with the budgeted amounts for the reporting period have been included in the Statement of comparison
of budget and actual amounts.

The Statement of comparative and actual information has been included in the annual financial statements
as the recommended disclosure when the annual financial statements and the budget are on the same
basis of accounting as determined by National Treasury. The Statement of comparison of budget and
actual amounts is presented for the revenue and expenses as this is the information submitted to the
Executive Authority. The Annual Performance Plan (APP) on the SAMRC intranet reflect the 2023/2024
approved budget.

Comparative information is not required.
1.29 Related parties

The entity operates in a sector currently dominated by entities directly or indirectly owned by the South
African Government. As a consequence of the constitutional independence of the three spheres of
government in South Africa, only entities within the national sphere of government and are in the same
economic entity (having the same executive authority) are considered to be related parties.

Management are those persons responsible for planning, directing and controlling the activities of the
entity, including those charged with the governance of the entity in accordance with legislation, in instances
where they are required to perform such functions.

Close members of the family of a person is considered to be those family members who may be expected
to influence, or be influenced by, that management in their dealings with the entity.

Transactions with related parties are disclosed.

Where those charged with governance are employed by an entity receiving funding or doing business with
SAMRC which do not meet the definition of a related party in terms of GRAP 20 these relationships are
separately disclosed in the Annual Report.

1.30 Living and non-living resources
Living resources are those resources that undergo biological transformation.

Non-living resources are those resources, other than living resources, that occur naturally and have not
been extracted.
Agricultural activity is the management by an entity of the biological transformation and harvest of
biological assets for:
(a) sale;
(b) distribution at no charge or for a nominal charge; or
(c) conversion into agriculture produce or into additional biological assets for sale or distribution at no
charge or for a nominal charge.

256 SAMRC ANNUAL REPOR T 2023-24