2005/2006 - SANParks

2005South African National ParksACCOUNTING POLICIESfor the year ended 31 March 20061. ACCOUNTING POLICIES(c) trade and other payables from non-exchange transactions;1.1 Basis of preparationThe annual fi nancial statements have been prepared in accordancewith the South African Statements of Generally Accepted AccountingPractices (GAAP), and in the manner required by the Public FinanceManagement Act, 1999 (Act No. 1 of 1999) (PFMA), including anyinterpretation of such Statements issued by the Accounting PracticesBoard, with the prescribed Standards of Generally Recognised AccountingPractice (GRAP) issued by the Accounting Standards Board replacingthe equivalent GAAP Statement as follows:Standard of GRAPGRAP 1: Presentation offi nancial statementsGRAP 2: Cash fl ow statementsGRAP 3: Accountingpolicies, changes inaccounting estimatesand errorsReplaced Statement of GAAPAC101: Presentation of fi nancialstatementsAC118: Cash fl ow statementsAC103: Accounting policies,changes in accountingestimates and errorsThe recognition and measurement principles in the above GRAP andGAAP Statements do not differ or result in material differences in itemspresented and disclosed in the fi nancial statement. The implementationof GRAP 1, 2 & 3 has resulted in the following signifi cant changes inthe presentation of the fi nancial statements:must be presented separately on the statement of fi nancialposition- The amount and nature of any restriction on cash balances isrequired to be disclosed.Paragraph 11-15 of GRAP1 has not been implemented as the budgetreporting standard is in the process of being developed by the internationaland local standard setters. Although the inclusion of budget informationwould enhance the usefulness of the fi nancial statements, non-disclosurewill not affect fair presentation.The principal accounting policies adopted in the preparation of thesefi nancial statements are set out below and are, in all material respects,consistent with those applied in the previous year, except as otherwiseindicated.The fi nancial statements have been prepared on the historical costbasis, except where indicated to the contrary.1.2 Underlying concepts and comparative figuresThe fi nancial statements are prepared on the going concern basis usingaccrual accounting.- Terminology differences:Standard of GRAPStatement of fi nancialperformanceStatement of fi nancial positionStatement of changes in netassetsNet assetsSurplus/defi cit for the periodAccumulated surplus/defi citReporting dateReplaced Statement of GAAPIncome statementBalance sheetStatement of changes in equityEquityProfi t/loss for the periodRetained earningsBalance sheet dateAssets and liabilities and income and expenses are not offset unlessspecifi cally permitted by an accounting standard.Changes in accounting policies are accounted for in accordance withthe transitional provisions in the standard. If no such guidance is given,they are applied retrospectively, unless it is impracticable to do so, inwhich case they are applied prospectively.Comparative fi gures are restated in the event of a change in accountingpolicy or prior period error.1.3 Revenue recognitionRevenue is measured at the amount received or receivable. Value AddedTax (VAT), cash discounts and rebates are excluded from revenue.- The cash fl ow statement can only be prepared in accordancewith the direct method.- Specifi c information such as:(a) receivables from non-exchange transactions, such as taxesand transfers;(b) taxes and transfers payable;Tourism income• Accommodation income is accrued on a daily basis.• Conservation levies are recognised on a daily basis and othertourist-related activities are recognised upon commencementof the activity.• Wild Card sales are amortised over the validity period of the WildCard.106