compressed_Annual Report 2016-ilovepdf-compressed

Revenue is measured at the fair value of the consideration
received or receivable.
2.9 LEASES
Leases in which a significant portion of the risks
and rewards of ownership are retained by the
lessor are classified as operating leases. Payments
made under operating leases (net of any incentives
received from the lessor) are charged to the
statement of comprehensive income on a straightline
basis over the period of the lease.
2.9.1 The Fund as lessor
Receipts of operating leases from properties held
as owner-occupied are accounted for as income
on the straight-line basis over the period of the
lease. When an operating lease is terminated,
any payment required by the lessee by way of
penalty is recognised as income in the period in
which termination takes place.
2.9.2 The Fund as lessee
Lease payments arising from operating leases are
recognised in the statement of comprehensive income
on a straight-line basis over the lease term.
2.10 CASH AND CASH EQUIVALENTS
Cash and cash equivalents are carried in the
statement of financial position at cost. For purposes
of the statement of cash flows, cash and cash
equivalents comprise cash on hand, deposits held
at call with Funds, other short-term highly liquid investments
with original maturities of three months
or less, and Fund overdrafts. Fund overdrafts are
included within borrowings in current liabilities on
the statement of financial position.
2.11 EMPLOYEE BENEFITS
(a) Pension obligations
The Fund has a defined benefit plan for some of
its employees. A defined benefit plan defines an
amount of pension benefit that an employee will
receive on retirement, usually dependent on one
or more factors such as age, years of service and
compensation.
The asset recognised in the balance sheet in
respect of defined benefit pension plans is the
present value of the defined benefit obligation
at the end of the reporting period less the fair
value of plan assets, together with adjustments for
unrecognised past-service costs. The defined benefit
asset is calculated triennially by independent
actuaries using the projected unit credit method.
Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions
are charged or credited to equity in other
comprehensive income in the period in which they
arise.
Past-service costs are recognised immediately in
income, unless the changes to the pension plan
are conditional on the employees remaining in
service for a specified period of time (the vesting
period). In this case, the past-service costs are
amortised on a straight-line basis over the vesting
period.
(b) Termination benefits
Termination benefits are payable when employment
is terminated by the Fund before the normal
retirement date, or whenever an employee
accepts voluntary redundancy in exchange for
these benefits. The Fund recognises termination
benefits when it is demonstrably committed to a
termination when there is a detailed formal plan
to terminate the employment of current employees
without possibility of withdrawal. In the case of an
offer made to encourage voluntary redundancy,
the termination benefits are measured based on
the number of employees expected to accept the
offer.
(c) Statutory obligations
Provision is not made for statutory termination
obligations in terms of the Employment Act, 1980.
It is considered that the Fund’s contributions to the
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ANNUAL REPORT 2017