LIMPOPO GAMBLING BOARD A/REPORT 2022/23

LIMPOPO GAMBLING BOARD Financial Statements for the year ended 31 March 2023 Accounting Policies

1.6 Financial instruments (continued) Receivables Where the effect on fair value at initial recognition of any extended payment terms is not material, no adjustments are made. Receivables are subsequently measured at amortised cost using the effective interest rate methods less any impairment loss. Interest income is recognised in the Statement of Financial Performance by applying the effective interest rate. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks and other highly liquid investments with original maturities of three months or less. For the purpose of the Cash Flow Statement, cash and cash equivalents comprise cash on hand net of bank overdrafts, all of which are available for use by the Board unless otherwise stated. The cash flow statement is prepared on the basis of the direct method. 1.7 Statutory receivables Identification Statutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlement by another entity in cash or another financial asset.

Carrying amount is the amount at which an asset is recognised in the statement of financial position.

The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised.

Nominal interest rate is the interest rate and/or basis specified in legislation, supporting regulations or similar means.

The transaction amount for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means.

Recognition The entity recognises statutory receivables as follows: • if the transaction is an exchange transaction, using the policy on Revenue from exchange transactions; • if the transaction is a non-exchange transaction, using the policy on Revenue from non-exchange transactions (Taxes and transfers); or

LIMPOPO GAMBLING BOARD 2022/23

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