RTIA Annual Report E-Book

Road Traffic Infringement Agency Annual Financial Statements for the year ended 31 March 2024 __________________________________________________________________________________________________________________________________________________________ Significant Accounting Policies 1.22 Commitments

1.24 Assets held for distribution All assets held for disbursement and / or sale will be recognised and disclosed under current assets in the Statement of Financial Position as these items will most likely be disbursed and/or sold within a twelve-month period. These assets will be carried at their book value and depreciated in line with the Property, Plant and Equipment accounting policy, if in use. Should the assets not be in use, it will not be depreciated. 1.25 Post balance sheet events Events after the end of the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the annual financial statements are authorised for issue. There are two types of events: - those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the end of the reporting period); and - those that are indicative of conditions that arose after the end of the reporting period (non-adjusting events after the end of the reporting period) Events after the end of the reporting period include all events up to the date when the annual financial statements are authorised for issue, even if those events occur after the public announcement of profit or loss or other selected financial information.

Items are classified as commitments when an entity has committed itself to future transactions that will normally result in the outflow of cash. Disclosures are required in respect of unrecognised contractual commitments. Commitments for which disclosure is necessary to achieve a fair presentation should be disclosed in a note to the annual financial statements, if both the following criteria are met: - Contracts should be non-cancellable or only cancellable at significant cost; and - Contracts should relate to something other than the routine, steady, state business of the entity, therefore salary commitments relating to employment contracts or social security benefit commitments are specifically excluded. Management will use its own judgement when determining commitments to be disclosed in the notes. 1.23 Transfer of functions between entities under common control Definitions Transfers of functions between entities under common control are accounted for by the transferor by derecognising assets and liabilities at their carrying amounts at the date of transfer. Any difference between the assets and liabilities derecognised and consideration paid, if any, is recognised in accumulated surplus or deficit.

141

Road Traffic Infringement Agency • Annual Report 2023/24