CGE ANNUAL REPORT

2022/23 ANNUAL REPORT

Financial Statements for the year ended 31 March 2023

Notes to the Financial Statements for the year ended 31 March 2023

Figures in Rand

2023

2022

Property, plant and equipment (continued)

Change in Accounting Estimates The Commission changed its accounting policy for depreciating Property, plant and equipment. Management takes view that the change in accounting policy provides a more reliable and more relevant information on the usage of the class of assets in order to achieve its mandate. Accordingly the adoption of the change in accounting policy for the below class of assets has no effects on prior years. The accounting policy has been applied prospectively. Change in Accounting Policies: Included in the depreciation for 2022/23 financial year is an effect of a change in estimate arising from management decision to change the useful life of Office equipment from 5-15 years to 5-20 years, I.T equipment effected from 5-15 years to 5-20 years in terms of the GRAP 17 and GRAP 3. Office equipment depreciation included the effect of a changes of R38 199 arising from management’s decision. This change of policies will result in R38 199 decrease in depreciation in the current period and the corresponding increase in depreciation in the future period. I.T equipment depreciation included the effect of a changes of R68 201 arising from management’s decision. This change of policies will result in R68 201 decrease in depreciation in the current period and the corresponding increase in depreciation in the future period. Change in estimates: Depreciation included change in estimates for class of Office furniture amounting to R7 863 arising from management’s decision. This changes of estimates will result in a R7 863 decrease in depreciation in the current period and the corresponding increase in depreciation in the future period.

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