BANKSETA AR 31 AUGUST

ANNUAL FINANCIAL STATEMENTS ACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2022 BASIS OF PREPARATION The principal accounting policies adopted in the preparation of these financial statements are set out below and are, in all material respects, consistent with those of the previous year, except as otherwise indicated. The annual financial statements have been prepared on the historical cost basis, except where adjusted for present/fair values as required by the respective accounting standards. The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP) and the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) as amended, including any interpretations of such Standards issued by the Accounting Standards Board. 1. In preparing the Annual Financial Statements and application of the BANKSETA’s accounting policies, management is required to make estimates and assumptions that affect the amounts represented in the Annual Financial Statements and related disclosures. The estimates and associated assumptions are based on historical experiences and other factors that are considered to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not apparent from other sources. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in future could differ from these estimates which may be material to the Annual Financial Statements. Significant judgements include: 3.1 Receivables from exchange transactions The entity assesses its trade receivables, held to maturity investments, and loans and receivables for impairment at the end of each financial reporting period. In determining whether an impairment loss should be recorded in the Statement of Financial Performance, the entity makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. 3.2 Receivables from non-exchange transactions The BANKSETA pays mandatory grants to its sector levy-payers based on information from the South African Revenue Services (SARS). Where SARS retrospectively amends the information on levies collected in the prior year by decreasing the levy amounts, this may result in grants that have been paid to affected levy-payers being in excess of the grant amount BANKSETA would have paid to those levy payers had all information been available at the time of payment of those grants. A receivable relating to the overpayments made in prior periods is recognised at the amount of the grant overpayment, net of irrecoverable debts and allowance for irrecoverable amounts. 2. GOING CONCERN These Annual Financial Statements were prepared based on the expectation that the BANKSETA will continue to operate as a going concern for at least the next 12 months. 3. SIGNIFICANT JUDGEMENTS, ESTIMATES AND SOURCES OF UNCERTAINTY

Should SARS revise the levy information from prior years by increasing those levy amounts, the additional grants due are paid and accounted for in the current year.

3.3 Payables from exchange transactions Payables from exchange transactions are stated at their nominal value. The carrying amount of these payables approximates fair value due to the short maturity period of these instruments.

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PART E: FINANCIAL INFORMATION | BANKSETA ANNUAL REPORT 2021/22