HDA Annual Report

ANNUAL REPORT 2023/24

Accounting Policies Reporting entity The Housing Development Agency is a section 3A entity of the PFMA, Act 1 of 1999. The principal activity is accelerating the development of sustainable human settlements through land assembly, building and property acquisitions, and project management and support services.

1.2 Presentation Currency

The financial statements are presented in South African Rand, which is the functional currency of the Agency. Amounts in the financial statements are rounded to the nearest One thousand Rand.

1.3 Materiality

Items are considered to be material if they could, individually or collectively, influence the decisions or assessments of users made on the basis of the financial statements. Materiality depends on the nature or size of the omission or misstatement judged in the surrounding circumstances. The nature or size of the information item or a combination of both could be the determining factor. Assessing whether an omission or misstatement could influence decision of users, and so be material, requires consideration of the characteristics of those users. The framework for the preparation and presentation of financial statements (GRAP1) states that the users are assumed to have a reasonable knowledge of government, its activities, accounting and a willingness to study the information with reasonable diligence. Therefore, the assessment takes into account how users with such attributes could reasonably be expected to be influenced in making and evaluating decision. The use of judgement, estimates and assumptions is inherent to the process of preparing annual financial statements. These judgements, estimates and assumptions affect the amounts presented in the annual financial statements. Uncertainties about these estimates and assumptions could result in outcomes that require a material adjustment to the carrying amount of the relevant asset or liability in future periods. Estimates are informed by historical experience, information currently available to management, assumptions and other factors that are believed to be reasonable under the circumstances. These 1.4 Significant judgement and sources of estimation uncertainty

1. Presentation of Annual Financial Statements

1.1 Basis of preparation

The annual financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) issued by the Accounting Standards Board in terms of section 91(1) of public finance Management Act (Act No.1 of 1999). These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with the historical cost convention as the basis of measurement, unless specified otherwise. Assets, liabilities, revenues, expenses were not offset,except where offsetting is either required or permitted by standard GRAP. Accounting policies for material transactions, events or conditions not covered by the GRAP reporting framework, have been developed in accordance with paragraphs 8, 10 and 11 of the GRAP 3 and the hierarchy approved in Directive 5 issued by the Accounting Standards Board. Management has concluded that the financial statements fairly present the entity ‘s financial position,financial performance and cash flow for the year ended 31 March 2023 The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to the years presented, unless otherwise stated.

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