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UNISA ANNUAL REPORT 2011
NOTE 24: ESTIMATIONS AND JUDGEMENT APPLIED BY
MANAGEMENT IN APPLYING THE ACCOUNTING POLICIES
The following estimations and judgements were applied by the Council and Management in applying the accounting
policies
24.1 Write-down of inventory
The level of study material and prescribed books on hand at each reporting date is examined and compared
to the historical usage and estimated future student registrations. Study material that will be revised within
a two-year period is also identified. Any material in excess of demand is written down and reflected at their
scrap value.
Damaged inventory is similarly written down when identified.
24.2 Post-retirement employee benefits
The estimations and assumptions applied by the independent actuaries in valuing the University’s post-retirement
pension fund and medical aid liabilities are fully disclosed in the related notes.
NOTE 25: RELATED PARTIES
25.1 Senior Management and employees
25.1.1 Emoluments paid to Senior Management
Senior Management has been defined on all post grades between Deputy Executive Dean/ Director and the
Principal and Vice Chancellor. Please refer to note 23 for more detail.
25.1.2 Unsecured loans advanced to employees
Please refer to note 4 for vehicle and personal loans granted to Senior Management and other personnel. No
vehicle loans and no personal loans were granted during 2010 and 2011 to Senior Management. The outstanding
loans were not impaired.
25.1.3 Study benefits
In terms of conditions of service, employees and dependants are entitled to the following study benefits:
• Senior Management and their close relatives who study at any other recognised tertiary institution will
receive a subsidy from the University. During 2011 an amount of R39 015 (2010: R36 600) was paid as
subsidies.
• Senior Management and their close relatives who study at the University will only pay the cost for one
undergraduate semester module. In certain cases the study fees will be subsidised in full. During 2011
the benefit granted amounted to Rnil (2010: R21 627).
25.1.4 Council members, senior management and employees interest in supply contracts
In terms of the University’s policy, all employees are required to declare any potential conflict of interest that
may arise when the University contracts with an external supplier. During the year the following transactions
were concluded with institutions where Council Members were involved:
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