Department of Defence Annual Report 2008-2009

| Department of Defence | Vote 19 |
SPECIAL DEFENCE ACCOUNT
ACCOUNTING POLICY
for year ended 31 March 2009
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies in the preparation of the nancial statements are set out below. These
policies have been modied with respect to reporting the year under review, to ensure fair presentation
and completeness of all relevant elements of the nancial statements.
1. Underlying assumption
1.1 Basis of preparation
The Special Defence Account’s (SDA) nancial statements have been prepared in accordance
with the entity-specic basis, wherein a modied accrual basis of accounting is applied.
| Financial Performance |
1.2 Presentation currency
All amounts have been presented in the currency of the South African Rand (R ) which is also
the functional currency of the department. Foreign currency transactions have been translated
into the nancial currency using the exchange rates prevailing at the dates of the transactions.
1.3 Rounding
Unless otherwise stated, all nancial gures have been rounded to the nearest one thousand Rand
(R’000).
1.4 Comparative gures
Prior period comparative information has been presented in the current year’s nancial statements.
Where necessary gures included in the prior period’s nancial statements have been reclassied
to ensure that the format in which the information is presented is consistent with the format of
the current year’s nancial statements.
2. Revenue
2.1 Transfer from General Vote
The Minister of Defence approves an annual budget in accordance with the provisions
of the Special Defence Account Act, 1974 (Act No. 6 of 1974) as amended, whereafter
the budgeted amount is dealt with as a transfer payment from the Department of Defence.
The Voted funds are recognised only when funds are drawn from National Treasury.
The transfer is presented in the Statement of Financial Performance.
Unutilised funds are retained for nancing future operating activities.
Annual Report FY 2008 - 2009 364