SACAA Annual Report 2022_23

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Accounting Policies Annual Financial Statements for the year ended 31 March 2023

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Measurement The invoice value of sales and services rendered, excluding value-added tax in respect of trading operations, is recognised at the date on which services are provided. The passenger safety charge is based on the number of passengers on scheduled services departing from all airports in the country. This data is obtained from the scheduled airlines and verified by data received from the airports. Fuel levies are based on litres of aviation fuel sold by fuel wholesalers and verified biannually by independent external auditors appointed by the SACAA. Accident and incident investigation fees are received from the Department of Transport on a cost-recovery basis negotiated annually in advance. User fees are generated from examinations, licence renewals, certifications, airworthiness and calibrations. The revenue is recognised when the service is rendered. 1.15 Translation of foreign currencies Foreign currency transactions A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction. At each reporting date, foreign currency monetary items are translated using the closing rate. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous annual financial statements are recognised in surplus or deficit in the period in which they arise.

1.13 Revenue recognition from exchange transactions (continued) Other income Other income comprise of fees that are collected and not related to the mandate of the SACAA. Interest Revenue arising from the use by others of the SACAA’s assets yielding interest is recognised when: • It is probable that the economic benefits or service potential associated with the transaction will flow to the SACAA, and • The amount of the revenue can be measured reliably. Interest is recognised, in surplus or deficit, using the effective interest rate method. 1.14 Revenue recognition from non exchange transactions Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners. Non-exchange transactions are defined as transactions where the SACAA 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. Fair value is the amount for which an asset could be exchanged, or a liability settle, between knowledgeable, willing parties in an arms length transaction.

Annual Financial Statements I Annual Report 2022/23 I 197