BANKSETA ANNUAL REPORT 2023

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

21. ACCOUNTING PRONOUNCEMENTS (continued)

d) GRAP 104 : Financial instruments (revised) This standard prescribes recognition, measurement, presentation and disclosure requirements for financial instruments and makes significant modifications to the principles in the previous standards applied in order to:

• simplify the recognition, measurement and disclosure of financial instruments; and • accommodate the types of financial instruments entered into in the public sector.

The definitions of the various categories of financial instruments in IAS 39 have been streamlined and replaced which will require us to change our accounting policy accordingly.

The following disclosures required under IAS are encouraged but not required:

• The disclosure of fair values for financial instruments; • Certain disclosures about the use of the fair value using the three tiered hierarchy; • A market sensitivity analysis.

It is not expected that this standard will significantly impact future disclosures.

e) The limit on a defined benefit asset, minimum funding requirements and their interaction (revised) The revised standard limits the measurement of a defined benefit asset to “the present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan”. Minimum funding requirements may exist to improve the security of the post-employment benefit promise made to members of an employee benefit plan. Such requirements normally stipulate a minimum amount or level of contributions that must be made to a plan over a given period. Therefore, a minimum funding requirement may limit the ability of the entity to reduce future contributions.

The BANKSETA does not have any defined benefit facilities or funds. This standard will not have any impact on the BANKSETA’s reporting.

f) The effect of past decisions on materiality This interpretation explains the nature of past materiality decisions and their potential effect on current and subsequent reporting periods. It addresses: (a) Whether past decisions about materiality affect subsequent reporting periods; (b) Whether applying alternative accounting treatments based on materiality is a departure from the standards of GRAP or an error.

The application of this standard is not expected to have a material impact on the BANKSETA’s reporting.

g) Guideline on accounting for landfill sites The objective of the guideline is to provide guidance to entities that manage and operate landfill sites. The guideline applies to entities that are required to comply with the legislative requirements applicable to landfill sites and therefore is not applicable to the BANKSETA and will not impact on its future reporting.

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BANKSETA ANNUAL REPORT 2022/23