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)

Where the entity is exempt from the disclosures in accordance with the above, the entity discloses narrative information about the nature of the transactions and the related outstanding balances, to enable users of the entity’s financial statements to understand the effect of related party transactions on its financial statements. 1.19 Events after reporting date Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: • those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and • those that are indicative of conditions that arose after the reporting date (non‑adjusting events after the reporting date). The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred. The entity will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non‑adjusting events, where non‑disclosure could influence the economic decisions of users taken on the basis of the financial statements. 1.20 Administrative Fines Liability • This fines represent penalties imposed by the Mine Health Safety Inspectorate in terms of section 55B of the MHS Act for failing to comply with the provisions of the act. • MHSC is the custodian of the bank account where these funds are deposited into. • Under the MHS Act the Inspectorate is legally entitled to the fines and as such MHSC recognises a Liability accordingly. • The admin fine liability is a financial instrument recognised, measured and disclosed in line with the entities accounting policy on financial instruments. 1.21 Offsetting of financial transactions Except for immaterial transactions like gains and losses on de‑recognition of assets, the MHSC present separately each material class of similar items in the statement of financial performance and financial position.

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“EVERY MINE WORKER RETURNING FROM WORK UNHARMED EVERYDAY”