Rand Water | Integrated Annual Report 2025

INTEGRATED ANNUAL REPO

Consolidated Annual Financial Statements for the year ended 30 June 2025

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

37. Fair value measurement

Group

Rand Water

Figures in Rand thousands

2025

2024

2025

2024

Assets Fair value through other comprehensive income Investment in bonds

4 481 239

2 453 672

4 481 239

2 453 672

Amortised cost Cash and cash equivalents

12 209 324

6 345 257

12 195 249

6 331 592

Loans receivable

18 293

9 092

18 293

9 092

Term deposit investments Trade and other receivables

-

2 763 375 4 943 689

-

2 763 375

5 089 702 4 949 246 21 798 558 16 515 085 21 796 446 16 506 977 5 101 665

Liabilities Amortised cost Bonds

3 190 184 5 705 755

3 052 245 4 242 696

3 190 184 5 704 942

3 052 245 4 241 632

Trade and other payables

Lease liabilities Contract liabilities

6 784

12 992 110 235

6 784

12 992

60 661 110 235 8 963 384 7 418 168 8 962 571 7 417 104 60 661

The information below details the methods and assumptions used in estimating the fair values.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits from the asset’s highest and best use or by selling it to another market participant that would utilise the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

Investment in bonds: Fair value through other comprehensive income (level 1)

Financial assets measured at fair value through other comprehensive income consist of investments in sovereign and state owned bonds. The fair values of these assets are determined by reference to quoted market prices at the reporting date without any deduction for transaction costs.

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Rand Water | Integrated Annual Report 2025