Entire Document - Chris Hani District Municipality

8. NON-CURRENT ASSETS HELD-FOR-SALE (continued)1.2Subsequent MeasurementNon-current Assets and Disposal Groups classified as held-for-sale are measured atthe lower of their previous carrying amount and fair value less costs to sell.CHRIS HANI DISTRICT MUNICIPALITY ANNUAL REPORT 2011 / 2012A non-current asset is not depreciated (or amortised) while it is classified as held-forsale,or while it is part of a disposal group classified as held-for-sale.Interest and other expenses attributable to the liabilities of a disposal group classifiedas held-for-sale are recognised in surplus or deficit.The gain or loss on the eventual sale of non-current assets held-for-sale is includedin the Statement of Financial Performance as gain or loss on sale of assets. Thegain or loss on the eventual sale of non-current assets held-for-sale is calculated onthe difference between the net disposal proceeds and the carrying amount of theindividual asset or the disposal group.9.1.1REVENUE RECOGNITIONGeneralRevenue is derived from a variety of sources which include rates levied, grants fromother tiers of government and revenue from trading activities and other servicesprovided.Revenue comprises the fair value of the consideration received or receivable forthe sale of goods and services in the ordinary course of the municipality’s activities.Revenue is shown net of value-added tax, returns, rebates and discounts.The municipality recognises revenue when the amount of revenue can be reliablymeasured, it is probable that future economic benefits or service potential will flow tothe municipality and when specific criteria have been met for each of the municipality’sactivities as described below, except when specifically stated otherwise. The amountof revenue is not considered to be reliably measurable until all contingencies relatingto the sale have been resolved. The municipality bases its estimates on historicalresults, taking into consideration the type of customer, the type of transaction andthe specifics of each arrangement. Furthermore, services rendered are recognisedby reference to the stage of completion of the transaction at the reporting date.Revenue from Exchange Transactions refers to revenue that accrued to themunicipality directly in return for services rendered / goods sold, the value of whichapproximates the consideration received or receivable.262