Department of Tourism - ANNUAL REPORT 2010/11

Department of Tourism - Vote 34
Accounting Policies
for the year ended 31 March 2011
but an estimate is included in the disclosure
notes to the financial statements amounts.
All other losses are recognisedwhen
authorisation has been granted for the
recognition thereof.
3.4 Transfers and subsidies
Transfers and subsidies are recognised as
an expense when the final authorisation for
payment is effected on the system (by no later
than 31 March of each year).
is recovered from the responsible person or
written off as irrecoverable in the statement of
financial per formance.
3.7 Irregular expenditure
Irregular expenditure is recognised as
expenditure in the statement of financial
per formance. If the expenditure is not
condoned by the relevant authority it is treated
as an asset until it is recovered or written off as
irrecoverable.
3.5 Unauthorised expenditure
When confirmed unauthorised expenditure
is recognised as an asset in the statement
of financial position until such time as the
expenditure is either approved by the relevant
authority, recovered from the responsible
person or written off as irrecoverable in the
statement of financial per formance.
Unauthorised expenditure approved with
funding is derecognised from the statement
of financial position when the unauthorised
expenditure is approved and the related funds
are received.
Where the amount is approved without
funding it is recognised as expenditure in the
statement of financial per formance on the
date of approval.
3.6 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is recognised
as expenditure in the statement of financial
per formance according to the nature of the
payment and not as a separate line item on
the face of the statement. If the expenditure
is recoverable it is treated as an asset until it
4. ASSETS
4.1 Cash and cash equivalents
Cash and cash equivalents are carried in the
statement of financial position at cost.
Bank overdrafts are shown separately on the
face of the statement of financial position.
For the purposes of the cash flow statement,
cash and cash equivalents comprise cash on
hand, deposits held and bank overdrafts.
4.2 Other financial assets
Other financial assets are carried in the
statement of financial position at cost.
4.3 Prepayments and advances
Amounts prepaid or advanced are recognised
in the statement of financial position when the
payments are made and are derecognised as
and when the goods/services are received or
the funds are utilised.
Prepayments and advances outstanding at
the end of the year are carried in the statement
of financial position at cost.
Department of Tourism - ANNUAL REPORT 2010/11
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