RAND WATER PROVIDENT FUND ANNUAL REPORT 2022-2023

Contributions Contributions received and accrued

Contributions are measured at the fair value of the consideration received or receivable and are accrued and recognised as income in accordance with the Rules of the Fund. Any contributions outstanding at the end of the reporting period are recognised as a current asset – contributions receivable. Any contributions received in advance at the end of the reporting period are recognised as a current liability- contribution payable. Voluntary Contributions Voluntary contributions are recognised when they are received for annual payments or accrued where monthly recurring payments are made. Individual transfers Individual transfers are recognised on the earlier of receipt of the written notice of transfer (Recognition of Transfer) or receipt of the actual transfer value. Individual transfers are measured at the value of the transfer at the effective date of transfer, adjusted for Investment return or late payment interest as guided by the application. Benefits Benefits payable are measured in terms of the Rules of the Fund. Benefit payments are recognised as an expense when they are due and payable in terms of the Rules of the Fund. Any benefits not paid at the end of the reporting period are recognised as a current liability and are classified as benefits payable. Divorce orders Divorce orders are recognised in the Statement of Changes in Net Assets and Funds upon notification of the divorce order by the non-member spouse. The divorce order is measured in accordance with the divorce order decree and requirements of the Income Tax Act. Unclaimed benefits Unclaimed benefits are claims payable to current or former members that remain unpaid in excess of 24 months from the date it becomes due and payable in terms of the Rules of the Fund. Unclaimed benefits are initially measured at cost and subsequently measured at amortised cost. Unclaimed benefits are classified and disclosed as a non-current liability. Investment Income Interest income Interest Income in respect of financial assets held at amortised cost is accounted for in the Statement of Changes in Net Assets and Funds using the effective Interest method. Insurance policy income Insurance policy income is recognised when the right to receive payment is established.

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