ELRC 202324 Annual Report

Financial Statements for the year ended 31 March 2024 EDUCATION LABOUR RELATIONS COUNCIL | 2023/24 ANNUAL REPORT

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2024 (cont.)

1.9 Revenue Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for services rendered in the normal course of business.

Council’s revenue is determined based on the Collective Agreement on Levies.

1.10 Interest income Interest income is earned from the Council’s call accounts. It is recognised, in surplus or deficit, using the effective interest rate method. 1.11 Other income Other income comprises all other receipts that are not from the normal course of business. This includes mainly receipts for mandatory grants from EDTPSETA, subsidies for arbitration awards from CCMA, recovery of municipal charges from the Council’s tenant at the national office, and unknown receipts.

1.12 Penalty income Penalty income is penalty charged for late receipt of panellist claims. It is determined based on the Panellist Fee Policy.

1.13 Rental income Comprises of income from use of the unoccupied office space which is let out to NECT.

1.14 Related Parties Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions; or if the related party entity and another party are subject to common control. Related parties include individuals who have significant influence over the entity, such as members of the Executive Committee (EXCO), its committees and key management personnel. All transactions between the entity and related parties during the reporting period as well as comparative information are disclosed in the notes to the annual financial statements.

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