Limpopo Gambling Board Final

LIMPOPO GAMBLING BOARD Financial Statements for the year ended 31 March 2023 Accounting Policies 1.15 Revenue from non-exchange transactions (continued) Government grant

The entity receives a grant from government through the shareholder each financial year. The grant is recognised as a receivable at the beginning of each financial year and recognised into revenue as monthly transferes are made by the shareholder to the entity. The receivable is only recognised when: It is probable that the future economic benefits or service potential associated with the asset will flow to the entity and that the fairvalue of the asset can be measured reliably. Services in-kind Except for financial guarantee contracts, the entity recognise services in-kind that are significant to its operations and/or service delivery objectives as assets and recognise the related revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably. Where services in-kind are not significant to the entity’s operations and/or service delivery objectives and/or do not satisfy the criteria for recognition, the entity disclose the nature and type of services in-kind received during the reporting period. Grap 23, section 6.4 states that an entity shall recognise service in kind that are significant to its operations and/or service delivery objectives. For example, when an entity receives service in kind that are integral to its operations such as office accomodation paid on its behalf. It should recognise those services in kind if they meet the definition of an asset and satisfy the criteria for recognition as an asset and shall recognise the related service. 1.16 Accumulated Surplus In terms of Section 53(3) of Public Finance Management Act a public entity which must submit a budget in terms of subsection (1) may not budget for a deficit and may not accumulate surpluses unless the prior written approval has been obtained from the National Treasury. Pursuant to this provision, surpluses at each reporting date are surrendered unless retention has been authorised. Funds generated by the entity are surrendered as per Instruction Note 2 of 2013. 1.17 Accounting by principals and agents Identification A principal-agent arrangement results from a binding arrangement in which one entity (an agent), undertakes transactions with third parties on behalf, and for the benefit of, another entity (the principal).

LIMPOPO GAMBLING BOARD

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