GPW_AR_2013_Final_v10.pdf

ACCOUNTING POLICIES Annual Financial Statements for the year ended 31 March 2013

1. Basis of preparation The annual ½ nancial statements have been prepared in accordance with South African Statements of General Accepted Accounting Practice, and the Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) (as amended by Act No. 29 of 1999). The annual ½ nancial statements have been prepared on the historical cost basis, and incorporate the principal accounting policies set out below.

The GPW concluded that the annual ½ nancial statements fairly present the entity’s statement of ½ nancial position, statement of comprehensive income and statement of cash ¾ ow.

These accounting policies are consistent with the previous year, except where the government component has adopted certain new and amended South African Statements of Generally Accepted Accounting Standards.

1.1 Property, plant and equipment The cost of an item of property, plant and equipment is recognised as an asset when: it is probable that future economic bene ½ ts associated with the item will ¾ ow to the entity; and the cost of the item can be measured reliably.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is de-recognised.

Cost or fair value Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation Depreciation is calculated so as to write off the cost of property, plant and equipment on a straight-line basis, over the estimated useful life. Depreciation of an asset commences when the asset is ready for its intended purpose and brought to use. Pro ½ ts and losses arising on the disposal or retirement of an item of property, plant and equipment, determined as the difference between the actual proceeds and the carrying amount of the assets, are recognised in the statement of comprehensive income in the period in which they occur. The entity derecognises an item of property, plant and equipment only when the contractual rights to the cash ¾ ows from the property, plant and equipment expires, or when it transfers the property, plant and equipment and substantially all the risks and rewards of the ownership thereof to another entity.

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GPW ANNUAL REPORT 2012 | 2013