Page 307 - 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)

1.19 Revenue from exchange transactions (continued)

When services are performed by an indeterminate number of acts over a specified time frame, revenue
is recognised on a straight-line basis over the specified time frame unless there is evidence that some
other method better represents the stage of completion. When a specific act is much more significant
than any other acts, the recognition of revenue is postponed until the significant act is executed.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably,
revenue is recognised only to the extent of the expenses recognised that are recoverable.

Consulting and research service revenue is recognised by reference to the stage of completion of
the transaction at the reporting date. Stage of completion is determined by the proportion that costs
incurred to date bear to the total estimated costs of the transaction.
Other income includes revenue earned from conference organising and recoupment of travel costs.

Interest, royalties and dividends
Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or
similar distributions is recognised when:
• It is probable that the economic benefits or service potential associated with the transaction will flow
to the entity, and
• The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.
Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.

Dividends or similar distributions are recognised, in surplus or deficit, when the entity’s right to receive
payment has been established.

Service fees included in the price of the product are recognised as revenue over the period during which
the service is performed.
1.20 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an
entity, which represents an increase in net assets, other than increases relating to contributions from owners.
Conditions on transferred assets are stipulations that specify that the future economic benefits or service
potential embodied in the asset is required to be consumed by the recipient as specified or future economic
benefits or service potential must be returned to the transferor.

Control of an asset arise when the entity can use or otherwise benefit from the asset in pursuit of its objectives
and can exclude or otherwise regulate the access of others to that benefit.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities
extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or
use of assets) to another entity in exchange.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange
transaction, an entity either receives value from another entity without directly giving approximately equal
value in exchange, or gives value to another entity without directly receiving approximately equal value in
exchange.

Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon
the use of a transferred asset by entities external to the reporting entity.

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