Page 300 - SAMRC AnnualReport 2025-26

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

1.16 Employee benefits (continued)

Short-term employee benefits
Short-term employee benefits are employee benefits (other than termination benefits) that are due to be
settled within twelve months after the end of the period in which the employees render the related service.
When an employee has rendered service to the entity during a reporting period, the entity recognises the
undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:
• as a liability (accrued expense), after deducting any amount already paid. If the amount already paid
exceeds the undiscounted amount of the benefits, the entity recognises that excess as an asset
(prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future
payments or a cash refund.

The expected cost of compensated absences is recognised as an expense as the employees render
services that increase their entitlement or, in the case of non-accumulating absences, when the absence
occurs. The entity measures the expected cost of accumulating compensated absences as the additional
amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the
reporting date.
The entity recognises the expected cost of bonus, incentive and performance related payments when
the entity has a present legal or constructive obligation to make such payments as a result of past events
and a reliable estimate of the obligation can be made. A present obligation exists when the entity has
no realistic alternative but to make the payments.

Post-employment benefits
Post-employment benefits are employee benefits (other than termination benefits) which are payable
after the completion of employment.

SAMRC offers its employees post-employee benefits to the SAMRC Pension Fund.

Post-employment benefits: Defined contribution plans
Defined contribution plans are post-employment benefit plans under which an entity pays fixed
contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay
further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to
employee service in the current and prior periods.

When an employee has rendered service to the entity during a reporting period, the entity recognises
the contribution payable to a defined contribution plan in exchange for that service:
• as a liability (accrued expense), after deducting any contribution already paid. If the contribution
already paid exceeds the contribution due for service before the reporting date, an entity recognises
that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example,
a reduction in future payments or a cash refund; and
• as an expense, unless another Standard requires or permits the inclusion of the contribution in the
cost of an asset.

Where contributions to a defined contribution plan do not fall due wholly within twelve months after the end
of the reporting period in which the employees render the related service, they are discounted. The rate used
to discount reflects the time value of money. The currency and term of the financial instrument selected to
reflect the time value of money is consistent with the currency and estimated term of the obligation.

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