ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Accounting Policies

1.9.6 Offset Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position when the Corporation has a legally enforceable right to set off the recognised amounts, and intends to either settle on a net basis, or to realise the asset and settle the liability simultaneously. 1.10 Trade and other receivables Trade and other receivables consist of insurance receivables and non‑insurance receivables (financial and non‑financial): (i) Insurance receivables are accounted for in terms of IFRS 4, less provision for impairment and are not discounted. (ii) Non‑insurance financial receivables are accounted for in terms of IAS 39 and are measured at amortised cost using the effective interest method, less provision for impairment; and (iii) Non‑insurance non‑financial receivables are comprised of the VAT and prepaid expenses. The balance for prepaid expenses is reduced by the expense recognised in the statement of comprehensive income. The Corporation considers notified disputes and collection experience to determine which receivables are impaired Financial assets other than those carried at fair value through profit and loss, are assessed for evidence of impairment at each reporting date. If any such evidence exists the carrying value is reduced to the estimated recoverable amount by means of a charge to the statement of comprehensive income. Financial assets are impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the financial asset have been impacted. The impairment is recognised through an allowance account. For other financial assets such as trade receivables, the Corporation considers notified disputes and collection experience to determine which receivables are impaired. If, in a subsequent period, the amount of the impairment loss relating to a financial asset carried at amortised cost or a debt instrument carried as available‑for‑sale decreases due to an event occurring after the impairment was originally recognised, the previously recognised impairment loss is reversed through the statement of comprehensive income. Impairments relating to financial assets in available‑for‑sale equity instruments are not reversed through the statement of comprehensive income. Non‑financial assets The carrying amount of the Corporation’s non‑financial assets, other than deferred tax assets, is reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. A cash generating unit is the smallest identifiable asset group that generates cash flows that are largely independent from other assets. Impairment losses are recognised in the statement of comprehensive income. The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre‑tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset. Impairment losses recognised in prior periods are assessed at each reporting date for indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. The amount of the reversal is recognised through the statement of comprehensive income. 1.12 Provisions A provision is recognised in the statement of financial position when the Corporation has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. 1.11 Impairment Financial assets

YOUR EXPORT RISK PARTNER

36