127363 Gauteng Sports 2020.indb

GAUTENG DEPARTMENT OF SPORT, ARTS, CULTUREAND RECREATION: VOTE 12 NOTES TO THEANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

21 Events after the reporting date Events after the reporting date that are classi ¿ ed as adjusting events have been accounted for in the ¿ nancial statements. The events after the reporting date that are classi ¿ ed as non- adjusting events after the reporting date have been disclosed in the notes to the ¿ nancial statements. 22 Principal-Agent arrangements The department is not party to a principal-agent arrangement. 23 Departures from the MCS requirements Management has concluded that the ¿ nancial statements present fairly the department’s primary and secondary information and that the department complied with the Standard. 24 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous ¿ nancial year becomes recoverable from a debtor in the current ¿ nancial year. Amounts are either transferred to the Provincial Revenue Fund when recovered or are transferred to the statement of ¿ nancial performance when written-off. 25 Related party transactions Related party transactions within the MEC’s portfolio are recorded in the notes to the ¿ nancial statements when the transaction is not at arm’s length. The number of individuals and the full compensation of key management personnel is recorded in the notes to the ¿ nancial statements. 26 Inventories (this policy will only be applied on a date to be determined by the Accountant- General in a Treasury Instruction) At the date of acquisition, inventories are recognised at cost in the statement of ¿ nancial performance. Where inventories are acquired as part of a non-exchange transaction, the inventories are measured at fair value as at the date of acquisition. Inventories are subsequently measured at the lower of cost and net realisable value or where intended for distribution (or consumed in the production of goods for distribution) at no or a nominal charge, the lower of cost and current replacement value. The cost of inventories is assigned by using the weighted average cost basis. 27 Employee bene ¿ ts The value of each major class of employee bene ¿ t obligation (accruals, payables not recognised and provisions) is disclosed in the employee bene ¿ ts note.

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2019/20 ANNUAL FINANCIAL STATEMENTS