annual report 2010 - 2011 - Intsika Yethu Municipality

Intsika Yethu Municipality
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for the year ending 30 June 2010
1 BASIS OF ACCOUNTING
1.1 BASIS OF PRESENTATION
The annual financial statements have been prepared on an accrual basis of accounting and are in
accordance with historical cost convention unless specified otherwise.
These annual financial statements have been prepared in accordance with Generally Recognised
Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section
122(3) of the Municipal Finance Management Act, (Act No 56 of 2003).
In accordance with section 122(3) of the Municipal Finance Management Act (Act No.56 of 2003),
the Municipality has adopted Standards of GRAP and the transitional provisions as applicable as
issued by the Accounting Standards Board during the financial year, which are fundamentally different
to the fund accounting policies adopted in previous financial years. Comparative amounts
have been restated retrospectively to the extent possible.
The principal accounting policies adopted in the preparation of these annual financial statements
Those standards of GRAP and interpretations of such standards applicable to the operations of the
GRAP 1
GRAP 2
GRAP 3
GRAP 5
GRAP 6
GRAP 9
Presentation of Financial Statements
Cash flow statements
Accounting Policies, Changes in Accounting Estimates and Errors
Borrowing Costs
Consolidated and Separate Financial Statements
Revenue from Exchange Transactions
GRAP 12 Inventories
GRAP 13 Leases
GRAP 14
GRAP 16
GRAP 17
GRAP 19
GRAP 100
GRAP 102
IPSAS 20
IPSAS 21
Events after the Reporting Date
Investment Property
Property, Plant and Equipment
Provisions, Contingent Liabilities and Contingent Assets
Non-current Assets Held for Sale and Discontinued Operations
Intangible Assets
Related Pary Disclosure
Impairment of Non Cash-Generating Assets
INTSIKA YETHU LOCAL MUNICIPALITY / 48