Page 280 - SAMRC Annual Report 2024-2025

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
SIGNIFICANT ACCOUNTING POLICIES

(CONTINUED)

1.9 Statutory receivables (continued)

Recognition
The entity recognises statutory receivables as follows:
• if the transaction is an exchange transaction, using the policy on Revenue from exchange transactions;
• if the transaction is a non-exchange transaction, using the policy on Revenue from non-exchange
transactions (Taxes and transfers); or
• if the transaction is not within the scope of the policies listed in the above or another Standard of
GRAP, the receivable is recognised when the definition of an asset is met and, when it is probable
that the future economic benefits or service potential associated with the asset will flow to the entity
and the transaction amount can be measured reliably.

Initial measurement
The entity initially measures statutory receivables at their transaction amount.

Subsequent measurement
The entity measures statutory receivables after initial recognition using the cost method. Under the
cost method, the initial measurement of the receivable is changed subsequent to initial recognition to
reflect any:
• interest or other charges that may have accrued on the receivable (where applicable);
• impairment losses; and
• amounts derecognised.

Derecognition
The entity derecognises a statutory receivable, or a part thereof, when:
• the rights to the cash flows from the receivable are settled, expire or are waived;
• the entity transfers to another party substantially all of the risks and rewards of ownership of the
receivable; or
• the entity, despite having retained some significant risks and rewards of ownership of the receivable,
has transferred control of the receivable to another party and the other party has the practical ability to
sell the receivable in its entirety to an unrelated third party, and is able to exercise that ability unilaterally
and without needing to impose additional restrictions on the transfer. In this case, the entity:
– derecognise the receivable; and
– recognise separately any rights and obligations created or retained in the transfer.
The carrying amounts of any statutory receivables transferred are allocated between the rights or
obligations retained and those transferred on the basis of their relative fair values at the transfer date.
The entity considers whether any newly created rights and obligations are within the scope of the
Standard of GRAP on Financial Instruments or another Standard of GRAP. Any difference between the
consideration received and the amounts derecognised and, those amounts recognised, are recognised
in surplus or deficit in the period of the transfer.
1.10 Taxes

The SAMRC is exempt from income tax in terms of section 10 (1) (cA) (i) of the Income Tax Act
(Act No. 58 of 1962).

278 SAMRC ANNUAL REPOR T 2025-26