BANKSETA AR 31 AUGUST

ANNUAL FINANCIAL STATEMENTS ACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2022

3. SIGNIFICANT JUDGEMENTS, ESTIMATES AND SOURCES OF UNCERTAINTY (CONTINUED)

3.4 Payables from non-exchange transactions Payables from non-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. 3.5 Fair value estimation The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair value. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cashflows at the current market interest rate that is available to the entity for similar financial instruments. 3.6 Impairment testing Management has had to make the following judgements in applying criteria to designate assets as non cash generating assets or cash generating assets. Cash generating assets are assets used with the objective of generating a commercial return. BANKSETA assets are non-cash generating assets. If the recoverable service amount of a non-cash generating asset is less than its carrying amount, the amount of the asset shall be reduced to its recoverable service amount. That reduction is an impairment loss. An impairment loss shall be recognised immediately in the Statement of Financial Performance. The entity reviews and tests the carrying amount of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. If there are indications that impairments may have occurred, estimates are prepared of expected future cashflows for each group of assets. 3.7 Provisions Management raised provisions determined on estimates based on the information available at the date of issue of the Annual Financial Statements. Additional disclosures of these estimates of provisions is included in note 8 - Provisions. 3.8 Useful lives and residual value of property and equipment and intangible assets The BANKSETA re-assesses the useful lives and residual values of property and equipment on an annual basis. In re-assessing the useful lives and residual values of property and equipment management considers the condition and use of individual assets, to determine the remaining period over which the assets can and will be used.

3.9 Discounting The BANKSETA reviews and considers the effect of discounting on current assets and liabilities.

These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period when the estimate is revised if the revision affects only that period or in the period of the revision and future period if the revision affects both current and future periods.

4.

CURRENCY These financial statements are presented in South African Rands. All figures have been rounded of to the nearest thousand Rands, unless otherwise stated.

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