RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2023

2022 Restated *

37. Fair value measurement Financial Assets Fair value through other comprehensive income Investment in bonds

2 116 290 1 475 403 2 116 290 1 475 403

Amortised cost Cash and cash equivalents

4 896 630 4 912 560 4 884 128 4 902 359

Loans receivable

8 222

1 460

8 222

1 460

Term deposit investment Trade and other receivables

2 815 208 2 289 394 2 815 208 2 289 394 4 443 743 3 147 746 4 446 703 3 151 876 14 280 093 11 826 563 14 270 551 11 820 492

Financial Liabilities Amortised cost Unsecured Bonds

4 206 008 4 229 680 4 206 008 4 229 680 3 627 580 3 351 963 3 626 370 3 350 296

Trade and other payables

Lease liability Contract liability

2 179

172

2 179

172

134 343 190 930 134 343 190 930 7 970 110 7 772 745 7 968 900 7 771 078 The information below details the methods and assumptions used in estimating the fair values of financial instruments. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non‑financial asset takes into account a market participant’s ability to generate economic benefits from the asset’s highest and best use or by selling it to another market participant that would utilise the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

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