RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements 37.Fair value measurement (Continued)

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2023

2022 Restated *

Fair value through other comprehensive income (level 1)

Financial assets measured at fair value through other comprehensive income are categorised as Level 1 which represents those assets which are measured using unadjusted quoted prices for identical assets based on quoted market prices on the Johannesburg Stock Exchange at the reporting date without any deduction for transaction costs.

Trade and other receivables (at amortised cost)

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for expected credit losses. Trade and other receivables include contract assets.

Loans receivable (at amortised cost)

These are micro loans issued by the Group to qualifying employees measured at amortised costs, the fair value of the micro loans approximates their carrying value.

Financial liabilities (level 1)

The Group’s financial liabilities are unsecured bonds in issue as at the end of the financial year which are listed on the Johannesburg Stock Exchange. The fair value is determined using quoted prices of identical assets based on quoted market prices on the Johannesburg Stock Exchange at the reporting date without any deduction for transaction costs. 38. Other commitments

Group as lessor ‑ within one year

71 83

84

71 83

84

‑ in second to fifth year inclusive

148 232

148 232

154

154

The leased properties do not qualify as investment property as they were purchased for future operational use and the related income is incidental in nature.

293