Page 278 - SAMRC AnnualReport 2025-26

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

1.3 Significant judgements and sources of estimation uncertainty
(continued)

The entity determines the appropriate discount rate at the end of each year. This is the interest rate
that should be used to determine the present value of estimated future cash outflows expected to
be required to settle the pension obligations. In determining the appropriate discount rate, the entity
considers the interest rates of high-quality corporate bonds that are denominated in the currency in
which the benefits will be paid, and that have terms to maturity approximating the terms of the related
pension liability.

Other key assumptions for pension obligations are based on current market conditions. Additional
information is disclosed in Note 18.

Useful lives of property, plant and equipment and Intangible assets
Management assesses the appropriateness of the useful lives of property, plant and equipment and
Intangible assets at the end of each reporting period. The useful lives of motor vehicles; furniture
and office equipment; computer equipment; laboratory equipment; certain components of
buildings and intangible assets are determined based on the entity’s replacement practices for the
various assets and factors such as technological innovation.

When the estimated useful life of an asset differs from previous estimates, the change is accounted for
as a change in estimate.

Recognition of an asset acquired through a non-exchange transaction
An item of property, plant and equipment acquired by means of a donation, the cost recognised is at its
fair value as at the date of acquisition.

Biological assets
The fair value of biological assets is determined by the last selling price per biological animal type.

Budget judgements
Variance amounts above materiality is disclosed in note 41.

Disclosure of items
Where the deemed fair value of services in-kind was below materiality the note is not included in the
financial statements.

1.4 Biological assets that form part of an agricultural activity

The entity recognises biological assets or agricultural produce when, and only when:
• the entity controls the asset as a result of past events;
• it is probable that future economic benefits or service potential associated with the asset will flow to
the entity; and
• the fair value or cost of the asset can be measured reliably..

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