Page 299 - SAMRC AnnualReport 2025-26

F I NAN C IAL I N F O R MA T I O N

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

1.15 Impairment of non-cash-generating assets (continued)

When the amount estimated for an impairment loss is greater than the carrying amount of the non-
cash-generating asset to which it relates, the entity recognises a liability only to the extent that is a
requirement in the Standards of GRAP.
After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-
generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying
amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of an impairment loss
The entity assesses at each reporting date whether there is any indication that an impairment loss
recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased.
If any such indication exists, the entity estimates the recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has
been a change in the estimates used to determine the asset’s recoverable service amount since the last
impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service
amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset
attributable to a reversal of an impairment loss does not exceed the carrying amount that would have
been determined (net of depreciation or amortisation) had no impairment loss been recognised for the
asset in prior periods.
A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus
or deficit.
Any reversal of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation
increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the
non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s
revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.16 Employee benefits

Employee benefits are all forms of consideration given by SAMRC in exchange for services rendered by
employees. An annual valuation of the SAMRC Pension Fund and Post Retirement Medical Aid is performed.
A qualifying insurance policy is an insurance policy issued by an insurer that is not a related party (as
defined in the Standard of GRAP on Related Party Disclosures) of the reporting entity, if the proceeds of
the policy can be used only to pay or fund employee benefits under a defined benefit plan and are not
available to the reporting entity’s own creditors (even in liquidation) and cannot be paid to the reporting
entity, unless either:
• the proceeds represent surplus assets that are not needed for the policy to meet all the related
employee benefit obligations; or
• the proceeds are returned to the reporting entity to reimburse it for employee benefits already paid.

Termination benefits are employee benefits payable as a result of either:
• an entity’s decision to terminate an employee’s employment before the normal retirement date; or
• an employee’s decision to accept voluntary redundancy in exchange for those benefits.

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