GPW_AR_2013_Final_v10.pdf

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added tax.

1.11 Interest income Interest is recognised on a time-proportion basis using the effective interest method.

1.12 Irregular expenditure Irregular expenditure is expenditure that is contrary to the Public Finance Management Act (Act No. 01 of 1999), the Treasury Regulations issued in terms of the Act or in contravention of the entities supply chain management policy. Irregular expenditure excludes unauthorized expenditure. Irregular expenditure is accounted for as expenditure in the statement of comprehensive income and where recovered, it is subsequently accounted for as revenue in the statement of comprehensive income. 1.13 Fruitless and Wasteful Expenditure Fruitless and wasteful expenditure is expenditure that was made in vain and would have been avoided had reasonable care been exersised. Fruitless and wasteful expenditure is accounted for as expenditure in the statement of comprehensive income and were recovered, it is subsequintly accounted for as revenue in the statement of comprehensive income. The functional and presentation currency of the GPW is the South African Rand.Transactions in foreign currencies are initially recorded in the functional currency at the rate ruling at the date of the transaction. At the date of the statement of ½ nancial position, monetary assets and liabilities denominated in foreign currencies are translated to the functional currency, being the South African Rand, at exchange rates ruling at the date of the statement of ½ nancial position. Exchange differences arising on the settlement of transactions, at rates different from those at the date of the transaction, and unrealised foreign exchange differences on unsettled foreign currency monetary assets and liabilities, are recognised in the statement of comprehensive income. 7MKRM½GERX NYHKIQIRXW IWXMQEXIW ERH EWWYQTXMSRW In preparing the annual ½ nancial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual ½ nancial statements and related disclosures. Use of available information and the application of judgement are inherent in the formation of estimates. Actual results in the future could differ from these estimates, which may be material to the annual ½ nancial statements. Signi ½ cant judgements include: allowance for doubtful debts; allowance for slow moving inventory; residual values; useful lives and depreciation methods; employee obligations; and asset impairment tests. 1.14 Translation of foreign currencies Foreign currency transactions

Other judgements made relate to classifying ½ nancial assets and liabilities into categories.

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GPW ANNUAL REPORT 2012 | 2013