BANKSETA ANNUAL REPORT 2023

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ANNUAL FINANCIAL STATEMENTS ACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023 11. EMPLOYEE BENEFITS (continued) Post-employment benefits Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion of employment. The SETA provides a defined contribution pension fund as a post-retirement benefit to its employees. Defined contribution plans are post-employment benefit plans under which the entity pays fixed contributions into a separate entity (a pension fund) during the period of the employees’ service. The entity will have no legal or constructive obligation to pay further contributions in the current period, prior or future periods including post retirement years of the employees should the fund not hold sufficient assets to pay all employee benefits relating to employee service. - The SETA does not provide any post-employment medical benefits. - - as an expense, unless another standard requires or permits the inclusion of the contribution in the cost of an asset. 12. GRANTS AND PROJECTS A liability is recognised for grant payments once the specific criteria set out in the SETA Grant Regulations have been complied with by member companies and it is probable that the SETA will approve the grant application for payment. The liability is measured based on the expected future cash outflow as determined in accordance with the Act. The measurement of the liability is estimated using the value of the levies received. Discretionary projects No provision is made for projects approved at year-end, unless the service in terms of the contract has been delivered. Where a project has been approved, but has not been accrued for or provided for, it is disclosed as approved and allocated for future projects in the notes to annual financial statements. Where a project has been contracted, but has not been accrued for, it is disclosed as commitments in the notes to the financial statements. Commitments are disclosed where the SETA has, in the normal course of its operations, entered into a contractual agreement with entities related to project expenses which are not yet due for payment. 13. FINANCIAL INSTRUMENTS A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity. Financial assets and financial liabilities are recognised on the SETA’s statement of financial position when the SETA becomes a party to the contractual provisions of the instrument. 13.1 Financial assets The SETA has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: When an employee has rendered service to the SETA during a reporting period, the SETA recognises the contribution payable to a defined contribution plan in exchange for that service: - as a liability (accrued expense); and

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