RTIA Annual Report E-Book

Road Traffic Infringement Agency Annual Financial Statements for the year ended 31 March 2024 __________________________________________________________________________________________________________________________________________________________ Significant Accounting Policies

Item

Amortisation method Average useful life

Receivables from exchange transactions

Computer software and licenses Intangible assets under development

Receivables from exchange transactions that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Receivables are measured at amortised cost using the effective interest method, less any impairment. Interest income is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. Receivables from exchange transactions are carried at cost less provision made for impairment of these receivables and it is assessed at least annually for possible impairment. The impairment is determined in accordance with the accounting policy for impairments. Impairment adjustments are made through the use of an allowance account. Receivable from non-exchange transactions Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange. In a non exchange transaction, the entity does not provide any services directly to the customer. In determining the classification, the entity needs to look at the substance of the transaction and in doing so the entity exercises professional judgement. If it is not possible to distinguish between the exchange and non-exchange components, the transaction should be treated as a non-exchange transaction.

Straight-line

1 - 4 years

Straight-line

1 - 4 years

Amortisation does not cease when the asset becomes idle or is retired from active use unless the asset is fully depreciated. 1.6 Financial instruments Initial recognition and measurement Financial assets and financial liabilities are recognised on the statement of financial position when the entity has become a party to contractual provisions of the instrument. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire; or when financial assets and substantially all the risks and rewards of ownership of the assets are transferred to another entity. Financial liabilities are derecognised when, and only when, the entity’s obligations are discharged, cancelled or they expire. When a financial asset or financial liability is recognised initially, an entity shall measure it at its fair value plus, in the case of a financial asset or a financial liability not subsequently measured at fair value, transaction costs that are directly attributable to acquisition or issue of the financial assetor financial liability.

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Road Traffic Infringement Agency • Annual Report 2023/24