Economic Development Annual Report

Annual Report 2023/2024 Mpumalanga: Department of Economic Development and Tourism - Vote 6

Department of Economic Development & Tourism (Vote number 6) Financial Statements for the year ended March 31, 2024 Accounting Policies

8.

Expenditure (continued)

8.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold. Donations made in-kind are recorded in the notes to the financial statements on the date of transfer and are measured at cost or fair value. 8.3 Accruals and payables not recognised Accruals and payables not recognised are recorded in the notes to the financial statements at cost or fair value at the reporting date. 8.4 Leases 8.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment. Operating lease payments received are recognised as departmental revenue . The operating lease commitments are recorded in the notes to the financial statements. 9. Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position as a current liability. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short- term highly liquid investments and bank overdrafts. 10. Prepayments and advances Prepayments and advances expensed before 1 April 2024 are recorded until the goods and services are received. 11. Loans and receivables Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write- offs are made according to the department’s write -off policy. 12. Investments Investments are recognised in the statement of financial position at cost. 13. Payables Payables recognised in the statement of financial position are recognised at cost. 14. Capital assets 14.1 Movable capital assets Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at -.R1 All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at -R1

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