Page 290 - SAMRC AnnualReport 2025-26

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

1.8 Financial instruments (continued)

Derecognition

Derecognition of financial assets
The entity derecognises financial assets using trade date accounting.
Before evaluating whether, and to what extent, derecognition is appropriate under paragraphs 6.6 to
6.13, the entity determines whether those paragraphs should be applied to a part of a financial asset (or
a part of a group of similar financial assets) or a financial asset (or a group of similar financial assets) in
its entirety, as follows:
(a) Paragraphs 6.3 to 6.8 are applied to a part of a financial asset (or a part of a group of similar financial
assets) if, and only if, the part being considered for derecognition meets one of the following three
conditions:

(i) The part comprises only specifically identified cash flows from a financial asset (or a group of
similar financial assets).
(ii) The part comprises only a fully proportionate (pro rata) share of the cash flows from a financial
asset (or a group of similar financial assets
(iii) The part comprises only a fully proportionate (pro rata) share of specifically identified cash flows
from a financial asset (or a group of similar financial assets.
(b) In all other cases, paragraphs 6.3 to 6.8 are applied to the financial asset in its entirety (or to the
group of similar financial assets in their entirety).
In paragraphs above, the term “financial asset” refers to either a part of a financial asset (or a group
of similar financial assets) as identified in (a) above or, otherwise, a financial asset (or a group of similar
financial assets) in its entirety.

The entity derecognises a financial asset only when:
(a) the contractual rights to the cash flows from the financial asset expire, are settled or waived;

(b) the entity transfers to another party substantially all of the risks and rewards of ownership of the
financial asset; or

(c) the entity, despite having retained some significant risks and rewards of ownership of the financial
asset, has transferred control of the asset to another party and the other party has the practical ability
to sell the asset 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:

(i) derecognises the asset; and
(ii) recognises separately any rights and obligations created or retained in the transfer.

The carrying amounts of the transferred asset are allocated between the rights or obligations retained
and those transferred on the basis of their relative fair values at the transfer date. Newly created rights
and obligations are measured at their fair values at that date. Any difference between the consideration
received and the amounts recognised and derecognised in accordance with this paragraph is recognised
in surplus or deficit in the period of the transfer.

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