ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

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2

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1

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E X P O R T C R E

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Accounting Policies

1.18 SED & ESD contributions SED & ESD contributions encompasses projects that are external to the normal business activities of the Corporation and not directly for purposes of increasing profit. These projects have a strong developmental approach and utilise Corporation resources to benefit or uplift communities and are not primarily driven as marketing initiatives. The costs recognised as SED & ESD contributions are only those that form part of the mandatory allocated budget for SED & ESD programmes. Any other additional costs incurred on implementation of the SED & ESD programmes are recognised as operating expenses. SED & ESD contributions are recognised as an expense when paid to the beneficiary. 1.19 Commission paid Commission paid is charged by intermediaries on salvages actually received. Commission paid is recognised as an expense in the statement of comprehensive income on receipt of salvages during the period. 1.20 Other operating expenses Other operating expenses are recognised in the statement of comprehensive income when they are actually incurred. Operating expenses are aggregated on presentation in the statement of comprehensive income. Material operating expenditure line items are disclosed in the notes separately. 1.21 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is accounted for according to the nature of the expense. When confirmed, fruitless and wasteful expenditure is disclosed separately in the notes to the financial statements. The amount to be recorded in the note is equal to the value of the fruitless and wasteful expenditure incurred. Measures are implemented to ensure that such expenditure does not re‑occur and where possible the expenditure is recovered. Expenditure to be recovered is transferred to receivables for recovery. A receivable related to fruitless and wasteful expenditure is measured at the amount that is expected to be recovered and is de‑recognised when the receivable is settled or subsequently written off as irrecoverable. In instances where recovery is not possible, such fruitless and wasteful expenditure will be written‑off and removed from the note on approval by the Accounting Authority. Cases of a criminal nature are reported to the responsible authorities. Any criminal or disciplinary steps taken as a consequence of fruitless and wasteful expenditure are also disclosed. 1.22 Irregular expenditure Irregular expenditure is accounted for according to the nature of the expense. When confirmed, irregular expenditure must be disclosed separately in the notes to the financial statements. The amount of irregular expenditure incurred disclosed in the notes is equal to value of the transactions recognised in terms of IFRS in the statement of comprehensive income or statement of financial position. Irregular expenditure is removed from the note when it is either (a) condoned by the relevant authority; (b) transferred to receivables for recovery. A receivable related to irregular expenditure is measured at the amount that is expected to be recovered and must be de‑recognised when the receivable is settled or subsequently written off as irrecoverable. In instances where recovery is not possible, such irregular expenditure will be written‑off and removed from the note on approval by the Accounting Authority. Cases of a criminal nature are reported to the responsible authorities. Any criminal or disciplinary steps taken as a consequence of such losses or irregular expenditure are also disclosed.

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