CCMA ANNUAL REPORT

Commission for Conciliation, Mediation and Arbitration Annual Report 2022/23

Financial Statement for the year ended 31 March 2023

Accounting Policies

1.9 Financial instruments (continued) Financial instruments at amortised cost are non-derivative financial assets or non-derivative financial liabilities that have

fixed or determinable payments, excluding those instruments that: • the CCMA designates at fair value at initial recognition; or • are held for trading.

Classification The CCMA has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: Class Category Cash and cash equivalents Financial asset measured at amortised cost Receivables from exchange transactions Financial asset measured at amortised cost The CCMA has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: Class Category Finance lease obligations Financial liability measured at amortised cost Payables from exchange transactions Financial liability measured at amortised cost Initial recognition The CCMA recognises a financial asset or a financial liability in its statement of financial position when the CCMA becomes a party to the contractual provisions of the instrument. The CCMA classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement. Initial measurement of financial assets and financial liabilities The CCMA measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability, except for financial instruments subsequently measured at fair value, which are measured at its fair value. Subsequent measurement of financial assets and financial liabilities The CCMA measures all financial assets and financial liabilities after initial recognition using the amortised cost method. All financial assets measured at amortised cost, are subject to an impairment review. If the CCMA determines that no objective evidence of impairment exists for an individually assessed receivable, whether significant or not, it includes the receivable in a group of receivables with similar credit risk characteristics and collectively assesses them for impairment.

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