Ombud Council AR 2026

PART F: FINANCIAL INFORMATION

Payables Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method. Cash and cash equivalents The cash and cash equivalents balance at amortised cost is regarded as having low probability of default, therefore ECL is insignificant. 1.7 Statutory receivables Identification Statutory receivables are receivables that arise from legislation or supporting regulations and require settlement by another entity in cash. The Ombud Council’s statutory receivables is made up of Levy received from the financial institutions collected by the FSCA in accordance with applicable legislation. The statutory receivables are initially recognised at their transaction amount. Subsequently, statutory receivables are measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised. Statutory receivables are recognised as follows: • if the transaction is an exchange transaction, using the policy on revenue from exchange transactions; or • if the transaction is a non-exchange transaction, using the policy on revenue from non-exchange transactions. An impairment loss is established when there is an indication that a statutory receivable, or a group of statutory receivables that are due, will not be collected according to the original terms of the receivables. Significant financial difficulty of the debtor which may be evidenced by an application for debt counselling or business rescue, probability that the debtor will enter sequestration, liquidation or other financial re-organisation, default, bankruptcy or delinquency in payments, and adverse changes in international, national or local economic conditions are considered indicators that the trade receivable is impaired. The amount of the impairment loss recognised is the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the effective interest rate. Where the carrying amount is higher than the estimated future cash flows, the carrying amount of the statutory receivable, is reduced, through the use of an allowance account. When the statutory receivable is uncollectable, it is written off and subsequent recoveries of amounts previously written off are credited in the statement of financial performance. 1.8 Prepayments Prepayments are payments made in advance for services or goods that have not been delivered for which the Ombud Council expects delivery in the next financial period. Prepayments are recognised as current assets and are not discounted as the discounting effect thereof is considered immaterial. 1.9 Revenue from exchange transactions 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 the FSCA. An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Ombud Council 2025/26 Annual Report

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