Page 296 - SAMRC AnnualReport 2025-26

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

1.10 Statutory receivables (continued)

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.
1.11 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).

1.12 Leases

Operating leases – lessor
Operating lease revenue is recognised as revenue on a straight-line basis over the lease term.
Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying
amount of the leased asset and recognised as an expense over the lease term on the same basis as the
lease revenue.
Income for leases is disclosed under revenue in statement of financial performance.

Operating leases – lessee
Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The
difference between the amounts recognised as an expense and the contractual payments are recognised
as an operating lease asset or liability.
1.13 Cash and cash equivalents

Cash and cash equivalents comprise bank balances, cash on hand, deposits held at call with banks.

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