BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023

20. FINANCIAL INSTRUMENTS (continued)

20.6 Exposure to credit risk The carrying amounts of financial assets that represent the maximum exposure to credit risk are as follows and approximate the fair value:

20.7 Credit quality The credit quality of the financial assets are sound. Cash and cash equivalents are mainly fixed deposits at the well-established financial institutions approved by National Treasury. No security is held for these items. Receivables from exchange transactions is mainly the interest due on these fixed deposits which is capitalised on the first business day of the following month and deposits on office accommodation with reputable well established companies. Receivables from non-exchange companies arise from reversals from SARS on SDL received and in most cases is recoverable from future SDL receipts.

2022/23

2021/22

R’000

R’000

Cash and cash equivalents

1 126 578

1 212 576

Receivables from exchange transactions

8 406 1 321 1 134 984 1 213 897

The following methods and assumptions are used to determine the fair value of each class of financial instrument:

Cash and cash equivalents Cash and cash equivalents comprise cash held by the SETA and short-term bank deposits with an original maturity of three months or less. The carrying amount of these assets approximates their fair value. Receivables The carrying amount of accounts receivable is net of allowance for any doubtful debt, estimated by the Accounting Authority based on prior experience. The carrying amount of these assets approximates their fair value. Payables The carrying amount of account and other payables approximates fair value due to the relatively short term maturity of these financial liabilities.

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PART F: FINANCIAL INFORMATION | BANKSETA ANNUAL REPORT 2022/23