Entire Document - Chris Hani District Municipality

Reserves
Deferred
Revenue
Accumulated
Surplus
R R R
Appropriations from/(to) Reserves - (361 222) (361 222)
Transfers to offset Depreciation - (1 779 246) (1 779 246)
Transfer of Transactions to Accumulated Surplus (10 793 107) 964 575 (9 828 532)
Restated Balances as at 30 June 2008 - - 98 505 523
IAS 19 - Employee Benefits, paragraph 155 (a):
The transitional defined benefit liabilities for Post-employment Health Care Benefits and Long Service Allowances have
been recognised in the Annual Financial Statements of the municipality as at 30 June 2007 in terms of IAS 19, 155 (a).
Thus the full net liabilities as at 30 June 2007 has been recognised immediately in the Annual Financial Statements.
The comparative amounts have been restated. The effect of the change in Accounting Policy is as follows:
31.3 Reclassification of Provision for Post-retirement Benefits, Provision
for Long-term Service and Accumulated Surplus
The prior year figures of Provision for Post-retirement Benefits, Provision for Long-term Service and Accumulated
Surplus have been restated to correctly disclose the monies held by the municipality in terms of IAS 19.
The effect of the Change in Accounting Policy is as follows:
Provision Postretirement
Benefits
Provision
Long-term
Service
Current
Provisions
Accumulated
Surplus
R R R
(Ex Note 31.2)
Balances published as at 30 June 2007 - - - 98 505 523
Recognition of Provisions 12 844 865 2 261 167 848 597 (15 954 629)
Restated Balances as at 30 June 2007 12 844 865 2 261 167 848 597 82 550 894
Transactions incurred for the Year
2007/2008:
Contributions Received 2 917 951 640 201 - -
Expenditure Incurred - - (848 597) -
Transfer Short-term Portion to Current
Liabilities
(534 484) (303 597) 838 081 -
Restated Balances as at 30 June 2008 15 228 332 2 597 771 838 081 82 550 894
31.4 Reclassification of Revenue and Expenditure
The prior year figure of Government Grants and Subsidies (Note 20) has been restated to correctly classify the
transactions related to Assets obtained from Government Grants (previously included in the Government Grant Reserve).
The prior year figure of Employee Related Costs (Note 22) has been restated to correctly classify the transactions
related to expenditure incurred in terms of Defined Benefits.
The prior year figure of General expenses (Note 29) has been restated to correctly classify the transactions related to
expenditure incurred in terms of Operating Leases.
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