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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1.19 Budget information (continued) The approved budget is prepared on an accrual basis and presented by economic classification linked to performance outcome objectives. The approved budget covers the fiscal period from 01 April 2022 to 31 March 2023. The annual financial statements and the budget are compiled on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the Statement of comparison of budget and actual amounts. An explanation is provided for all variances between actual and budgeted amounts above 5% or in excess of R2 million in the notes to the annual financial statements. 1.20 Related Parties The SACAA has processes in place to aid in the identification of related parties. Related parties are defined as persons or entities with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an SACAA that is subject to common control, or joint control. The Department of Transport was identified as being able to exercise significant influence over the SACAA. As a result, all other entities under the same influence are regarded as related parties. 1.21 Taxation The SACAA is exempt from taxation in terms of the provision of section 10 (1) (CA) (i) of the Income Tax Act, 1962 (Act No. 58 of 1962).

Annual Financial Statements I Annual Report 2022/23 I 199