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) If there is objective evidence that a receivable is impaired and this receivable is individually assessed, the receivable is excluded from the collective assessment.

Reclassification The CCMA does not reclassify a financial asset while it is held unless it is: - combined instrument that is required to be measured at fair value; or - an investment in a residual interest that meets the requirements for reclassification.

Where the CCMA cannot reliably measure the fair value of an embedded derivative that has been separated from a host contract that is a financial instrument at a subsequent reporting date, it measures the combined instrument at fair value. This requires a reclassification of the instrument from amortised cost or cost to fair value. If fair value can no longer be measured reliably for an investment in a residual interest measured at fair value, the CCMA reclassifies the investment from fair value to cost. The carrying amount at the date that fair value is no longer available becomes the cost. If a reliable measure becomes available for an investment in a residual interest for which a measure was previously not available, and the instrument would have been required to be measured at fair value, the CCMA reclassifies the instrument from cost to fair value. Derecognition Financial assets The CCMA derecognises financial assets using trade date accounting. The CCMA derecognises a financial asset only when: - the contractual rights to the cash flows from the financial asset expire, are settled or waived; - the CCMA transfers to another party substantially all risks and rewards of ownership of the financial asset; or - the CCMA, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, the CCMA: - derecognises the asset; and - recognises separately any rights and obligations created or retained in the transfer. Financial liabilities The CCMA removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished - i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived. Presentation Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

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