Page 259 - SAMRC Annual Report 2023-24

FINANCIAL INFORMATION

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

(CONTINUED)

1.30 Living and non-living resources (continued)
Biological transformation (for purposes of this Standard) comprises the processes of growth, degeneration,
production, and procreation that cause qualitative or quantitative changes in a living resource.

Carrying amount is the amount at which an asset is recognised after deducting any accumulated
depreciation and accumulated impairment losses.

Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to
acquire an asset at the time of its acquisition or development and, where applicable, the amount attributed
to the asset when initially recognised in accordance with the specific requirements of other Standards
of GRAP.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.
Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable,
willing parties in an arm’s length transaction.

Group of resources means a grouping of living or non-living resources of a similar nature or function in
an entity’s operations that is shown as a single item for the purpose of disclosure in the annual financial
statements.

The residual value of an asset is the estimated amount that an entity would currently obtain from disposal
of the asset, after deducting the estimated costs of disposal, if the asset was already of the age and in the
condition expected at the end of its useful life.
Useful life is the period over which an asset is expected to be available for use by an entity, or the number
of production or similar units expected to be obtained from the asset by an entity.

Recognition
A living resource is recognised as an asset if it is probable that future economic benefits or service potential
associated with the asset will flow to the entity, and the cost or fair value of the asset can be measured reliably.

Where the entity holds a living resource that meets the definition of an asset, but which does not meet the
recognition criteria, relevant information is disclosed in the notes to the annual financial statements. When
the information about the cost or fair value of the living resource becomes available, the entity recognises,
from that date, the living resource and apply the measurement principles.

Measurement at recognition
A living resource that qualifies for recognition as an asset is measured at its cost.

Where a living resource is acquired through a non-exchange transaction, its cost is measured at its fair
value as at the date of acquisition.

The cost of a living resource comprises its purchase price, including import duties and non-refundable
purchase taxes, and any costs directly attributable to bringing the living resource to the location and
condition necessary for it to be capable of operating in the manner intended by management.

Measurement after recognition

Cost model
After recognition as an asset, a group of living resources are carried at its cost less any accumulated
depreciation and any accumulated impairment losses.

SAMRC ANNUAL REPOR T 2023-24 257