MHSC ANNUAL REPORT 2020

MINE HEALTH AND SAFETY COUNCIL ▪ ANNUAL REPORT 2019/20

Mine Health and Safety Council for the year ended March 31, 2020

Accounting Policies (continued)

Initial recognition The entity recognises a financial asset or a financial liability in its statement of financial position when the entity

becomes a party to the contractual provisions of the instrument. The entity recognises financial assets using trade date accounting.

Subsequent measurement of financial assets and financial liabilities The entity measures all financial assets and financial liabilities after initial recognition using the following categories: • Financial instruments at fair value. • Financial instruments at amortised cost. • Financial instruments at cost. All financial assets measured at amortised cost, or cost, are subject to an impairment review. 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 purposes of this Standard) for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means. Current tax assets and liabilities No provision for income tax has been made as the Mine Health and Safety Council ( MHSC) is exempt in terms of section 10(1)(cA)(b)(ii) of the Income Tax Act of 1962, as ammended. 1.9 Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership. When a lease includes both land and buildings elements, the entity assesses the classification of each element separately. 1.7 Statutory receivables 1.8 Tax

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”