SAMSA Annual Report 2015 - 2016
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CHAPTER 06 MARITIME FUND - ANNUAL FINANCIAL STATEMENTS MARITIME FUND - ANNUAL FINANCIAL STATEMENTS CHAPTER 06<br />
CASH FLOW STATEMENT<br />
ACCOUNTING POLICIES<br />
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH <strong>2016</strong><br />
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH <strong>2016</strong><br />
Note(s) <strong>2016</strong><br />
R ‘000<br />
<strong>2015</strong><br />
R ‘000<br />
1. PRESENTATION OF ANNUAL FINANCIAL STATEMENTS<br />
The annual financial statements have been prepared in accordance with South African Statements of Generally Recognised<br />
Accounting Practice (GRAP), the PFMA and the Treasury Regulations.<br />
Cash flow from operating activities<br />
Cash receipts from customers - 1 201 1 619<br />
Cash paid to suppliers and employees - (8 005) (5)<br />
Cash generated from operations - (6 804) 1 614<br />
Interest received - 320 359<br />
Cash flow from investing activities<br />
Net increase in cash and cash equivalents - (6 484) 1 973<br />
1.1 FINANCIAL INSTRUMENTS<br />
Initial recognition and measurement<br />
Financial assets and financial liabilities are recognised in the statement of financial position when the Authority becomes a party<br />
to the contractual provisions of the instrument. All purchases and sales of financial assets are initially recognised using trade date<br />
accounting.<br />
Financial instruments are initially measured at fair value plus, in the case of a financial instrument not at fair value through statement<br />
of financial performance, transaction costs that are directly attributable to the acquisition or issue of the instrument.<br />
The fair values of quoted investments are based on current bid prices. If the market for a financial asset is not active (and for unlisted<br />
securities), the Authority establishes fair value by using valuation techniques. These include the use of recent arm’s length<br />
transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, and option pricing models<br />
making maximum use of market inputs and relying as little as possible on entity-specific inputs.<br />
Cash and cash equivalents at beginning of the period - 8 484 6 511<br />
The Fund’s principal financial assets are cash and cash equivalents.<br />
Cash and cash equivalents at end of the period 3 2 000 8 484<br />
Cash and cash equivalents<br />
Cash and cash equivalents are measured at fair value. Cash and cash equivalents comprise cash balances and call deposits.<br />
1.2 ROUNDING OFF<br />
All figures in the financial statements were rounded off to the nearest thousand and are indicated by R ’000.<br />
1.3 INVESTMENT INCOME<br />
Investment income is recognised on a time-proportion basis using the effective interest method.<br />
1.4 CURRENCY<br />
In The currency used in these financial statements is South African Rand (ZAR) which is the Authority’s functional currency.<br />
1.5 COMPARATIVE FIGURES<br />
Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.<br />
1.6 RECOGNITION OF REVENUE<br />
Revenue is recognised when it is probable that future economic benefits will flow to the fund and these benefits can be measured<br />
reliably.<br />
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in the statement of financial<br />
performance, using the effective interest method.<br />
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