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) Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit. A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when the CCMA currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. In accounting for a transfer of a financial asset that does not qualify for derecognition, the CCMA does not offset the transferred asset and the associated liability. Identification Statutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlement by another CCMA in cash or another financial asset. Carrying amount is the amount at which an asset is recognised in the statement of financial position. The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised. Nominal interest rate is the interest rate and/or basis specified in legislation, supporting regulations or similar means. The transaction amount for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means. • if the transaction is an exchange transaction, using the policy on Revenue from exchange transactions; • if the transaction is a non-exchange transaction, using the policy on Revenue from non-exchange transactions (taxes and transfers); or • if the transaction is not within the scope of the policies listed in the above or another Standard of GRAP, the receivable is recognised when the definition of an asset is met and, when it is probable that the future economic benefits or service potential associated with the asset will flow to the CCMA and the transaction amount can be measured reliably. 1.10 Statutory receivables Recognition The CCMA recognises statutory receivables as follows:

Initial measurement The CCMA initially measures statutory receivables at their transaction amount.

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