CAV Annual Report 2021

CENTURION AEROSPACE VILLAGE NPC Registration Number: 2000/006996/08 ANNUAL FINANCIAL STATEMENT FOR THE YEAR ENDED 31 MARCH 2021 ACCOUNTING POLICIES

The resulting difference arising from the straight-line basis and contractual cash flows is recognised as an operating lease obligation or asset. Contingent rental escalations, such as those relating to turnover, are expensed in which the escalations are determined. 1.6. PROVISION AND CONTINGENCIES Provisions are recognised when: • the company has a present obligation as a result of a past event; • it is probable that an outflow of resources embodying economic benefitswill be required to settle the obligation; and • a reliable estimate can be made of the obligation. The amount of a provision is the present value of the expenditure expected to be required to settle the obligation. Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 16. Provisions are not recognised for any future operating losses. 1.7. GOVERNMENT GRANTS Government grants are recognised when there is reasonable assurance that: • the company will comply with the conditions attached to them; and • the grants will be received. Government grants are recognised as income over the periods necessary to match them with the related costs that they are intended to compensate. Government grants received for the acquisition of assets are capitalised as deferred income and recognised in the statement of comprehensive income over the useful life of

are subsequently measure at fair value, with changes in fair value being recognised in surplus or deficit. Other financial liabilities are subsequently measured at amortised cost, using the effective interest method. Trade and other receivables Trade and other receivables are initially measured at fair value, and are subsequently measured at amortised cost. Trade and other payables Trade payables are initially measured at fair value, and are subsequently measured at the amortised cost of the legal or constructive obligations. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits, and other short term highly liquid investments that that are readily convertible to a known amount of cash, and are subject to an insignificant risk of changes in value. These are initially recorded at fair value and subsequently at amortised cost. 1.5. LEASES Finance leases are leases whereby substantially all the risks and rewards of ownership are transferred to the lessee. Assets acquired in terms of finance leases are capitalised and depreciated over the shorter of the useful life of the asset and the lease term, with a corresponding liability raised on the Statement of Financial Position. The asset and liability are recognised at the commencement date at the lower of the fair value of the leased asset and the present value of minimum lease payments, calculated using the interest rate implicit in the lease at the inception of the lease. Any initial direct costs incurred are added to the amount recognised as an asset. Related finance costs are charged to profit or loss over the period of the lease using the effective interest method. Leases, where the lessor retains substantially all the risks and rewards of ownership of the asset, are classified as operating leases. Operating lease expense and income with fixed escalation clauses (net of any incentives received from the lessor or incentives given to the lessee) are recognised in profit or loss on a straight-line basis over the lease term.

the relevant asset. 1.8. REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised. Revenue from the sale of goods is recognised when the

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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