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CSIR ANNUAL REPORT 2010/11
Notes to the Annual Financial Statements
for the year ended 31 March 2011
1PRINCIPAL ACCOUNTING POLICIES (continued)
De-recognition (continued)
is discharged, cancelled or expires.
On de-recognition, the difference
between the carrying amount of the
fi nancial liability and the amount paid
for it is included in the statement of
comprehensive income.
Fair value methods and assumptions
The fair value of fi nancial instruments
traded in an organised fi nancial
market is measured at the applicable
quoted prices necessary to realise the
asset or settle the liability.
The fair value of fi nancial instruments
not traded in an organised fi nancial
market is determined using a variety
of valuation methods and assumptions
that are based on market conditions
and risk existing at the reporting date,
including independent appraisals and
discounted cash fl ow methods.
Related parties
The Group operates in an economic
environment currently dominated by
entities directly or indirectly owned
by the South African government.
As a result of the constitutional
independence of all three spheres
of government in South Africa, only
parties within the national sphere of
government will be considered to be
related parties.
Key management is defi ned as being
individuals with the authority and
responsibility for planning, directing
and controlling the activities of the
entity. All individuals from the level
of Group Executive up to the Board
of Directors are regarded as key
management.
Close family members of key
management are considered to be
those family members who may
be expected to infl uence, or be
infl uenced by key management
individuals or other parties related to
the entity.
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