HDA Annual Report

ANNUAL REPORT 2023/24

Accounting Policies

1.11 Standards and pronouncements comprising the GRAP Financial Reporting Framework

The following GRAP pronouncements applicable to the Agency were approved and became effective as at 31 March 2024:

GRAP

STANDARDS

IMPACT

EFFECTIVE DATE

GRAP 1

Presentation of Financial Statements

The Guideline on The Application of Materiality to Financial Statements. Explains whether past decisions about materiality can affect the future. Changes predominantly on Defined Benefit plans. Minor amendments aligned from international standard-setters as well as local stakeholder input

1-Apr-23

IGRAP 21

The Effect of Past Decisions on Materiality

1-Apr-23

GRAP 25 and (IGRAP 7) Employee Benefits

1-Apr-23

Improvements to Standards of GRAP (2020)

Improvements to Standards

1-Apr-23

The following IGRAP standards have been approved but not yet effective as at 31 March 2024:

IGRAP

STANDARDS

IMPACT

EFFECTIVE DATE

GRAP 104

Financial Instruments The transitional provisions require adoption of the revised Standard taken as a whole.

1-Apr-25

GRAP 1

Presentation of Financial Statements

1-Apr-24

2. Revenue recognition

• the amount of revenue can be measured reliably it is probable that the economic benefits or service potential associated with the transaction will flow to the entity; the stage of completion of the transaction at the reporting date can be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. • • •

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners. Revenue comprises the fair value of consideration received or receivable for services offered or for the use of the entity’s’ assets in the ordinary course of its activities When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

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