Page 292 - SAMRC Annual Report 2024-2025

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

(CONTINUED)

1.19 Revenue from non-exchange transactions (continued)

Recognition
An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue,
except to the extent that a liability is also recognised in respect of the same inflow.
As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources
from a non-exchange transaction recognised as an asset, it reduces the carrying amount of the liability
recognised and recognises an amount of revenue equal to that reduction.

Measurement
Revenue from a non-exchange transaction is measured at the amount of the increase in net assets
recognised by the entity.
When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises
revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition,
unless it is also required to recognise a liability. Where a liability is required to be recognised it will be
measured as the best estimate of the amount required to settle the obligation at the reporting date, and
the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently
reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the
liability is recognised as revenue.

Gifts and donations, including goods in-kind
Gifts and donations, including goods in-kind, are recognised as assets and revenue when it is probable
that the future economic benefits or service potential will flow to the entity and the fair value of the
assets can be measured reliably.

Services in-kind
The entity recognise services in-kind that are significant to its operations and/or service delivery objectives
as assets and recognise the related revenue when it is probable that the future economic benefits or
service potential will flow to the entity and the fair value of the assets can be measured reliably.

Where services in-kind are not significant to the entity’s operations and/or service delivery objectives
and/or do not satisfy the criteria for recognition, the entity has not disclosed the nature and type of
services in-kind received during the reporting period.
1.20 Revenue recognition for exchange and non-exchange
transactions

Revenue represents the parliamentary grant from government as well as external income.

Parliamentary grant (Revenue from non-exchange transactions)
Government grants are recognised when it is probable that the future economic benefit will flow to
the SAMRC and these benefits can be measured reliably. The grant is recognised to the extent that
there are no further obligations arising from the receipt of the grant. Government grants are assistance
by government in the form of transfer of resources in return for compliance with conditions related to
operating activities. Grants that compensate the SAMRC for expenses incurred are recognised in surplus
or deficit in the same periods in which the expense is recognised.

290 SAMRC ANNUAL REPOR T 2025-26