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 expected cost of bonus payment is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance. The costs of providing employee benefits are recognised in surplus or deficit. 1.10. STATEMENT OF CASH FLOWS The statement of cash flows is prepared using the direct method. 1.11. FRUITLESS AND WASTEFUL EXPENDITURE Fruitless and wasteful expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised. All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the Statement of Financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of Financial Performance.

significant risks and rewards of ownership are transferred to the buyer. When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the end of the reporting period. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied: • the amount of revenue can be measured reliably; • it is probable that the economic benefits associated with the transaction will flow to the company; • the stage of completion of the transaction at the end of the reporting period can be measured reliably; and • the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax. Interest is recognised, in surplus or deficit, using the time apportionment method, unless it is required to be capitalised in terms of a grant funding agreement. 1.9. EMPLOYEE BENEFITS The cost of short-term employee benefits, (those payable within 12-months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted. The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. Performance bonus The performance bonus is based on performance ratings and other factors including the performance of the entity, and its consequent ability to make bonus payments without infringing the requirements of prudent good governance.

CENTURION AEROSPACE VILLAGE NPC I ANNUAL REPORT I 2020/21

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