RTIA Annual Report E-Book

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

1.21 Services received in kind An entity shall recognise services in-kind that are significant to its operations and/or service delivery objectives when they meet the definition of an asset and satisfy the criteria for recognition as assets and shall recognise the related revenue. Where service in-kind is/are not significant to the entity’s operations and/ or service delivery objectives and/or do not satisfy the criteria for recognition, the entity shall disclose the nature and type of service in-kind received during the period. The standards further state that public entities may, but are not required to recognise services in-kind as revenue and as an asset due to the uncertainties surrounding services in-kind, including the ability to exercise control over the service, and measuring the fair value of the services, entities are not required to recognise services in-kind. However, entities are required to disclose the nature and type of services in-kind that are material. RTIA recognises services received in kind in the statement of financial performance at the fair value of these services received, when they are significant to the RTIA’s operations, and to the extent that a fair value can be determined reliably. Where the services are not significant and/or the fair value cannot be determined reliably, the nature and type of services received are disclosed. Services received in kind include national contravention register with the Road Traffic Management Corporation through the Department of Transport. While these services are important for RTIA’s operations, they are not significant and therefore not recognised.

about the nature of the transactions and the related outstanding balances, to enable users of the entity’s annual financial statements to understand the effect of related party transactions on its annual financial statements. RTIA operates in an economic sector currently dominated by entities directly or indirectly linked to the Department of Transport and the Issuing Authorities as defined in the AARTO Act. The South African Post Office (“SAPO”) is a key related party in serving of AARTO documents in terms of section 30 of the AARTO Act, read in conjunction with regulation 21 of the AARTO Regulations. Key management are those persons responsible for planning, directing and controlling the activities of the Agency, including those charged with the governance of the Agency in accordance with legislation, in instances where they are required to perform such functions. Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the Agency. The objective of the financial statements is to provide relevant and reliable information and therefore materiality is considered in the disclosure of these transactions.

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Road Traffic Infringement Agency • Annual Report 2023/24