National Consumer Tribunal Annual Report 2011/12 National Consumer Tribunal 2011-12 | Page 104

Annual Financial Statements
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
for the year ended 31 March 2011
25 Contingent Liability
There is a contingent liability that comprises the surplus as at 31 March 2011. A request
for the retention of the previous year’s surplus has been approved by National Treasury.
26 Taxation
No provision for South African normal taxation has been made as the Tribunal is exempted
in terms of Section 10 (1)(CA)(1) of the Income Tax Act.
Restated
31 March
2010
R
31 March
2011
R
27
CHANGE IN ACCOUNTING POLICY
GRAP 23 Revenue from non-exchange transactions becomes
effective for Schedule 3A public entities from 1 April 2012.
Entities are, however, allowed to early adopt the Standards
of GRAP for which the Minister of Finance has determined an
effective date that relates to future financial periods. NCT has
accordingly early adopted GRAP 23. Previously the NCT had
recognised grants related to assets in terms of IAS 20, which
required recognising the grant as a deferred income liability,
with income recognised over the useful life of the asset. The
NCT had previously recognised deferred income of R350 000
relating to the development of a case management system. In
terms of GRAP 23, when the conditions related to the grant
are fulfilled, the liability is reduced and revenue is recognised.
The NCT has fulfilled the conditions of the grant related to the
case management system and consequently recognised the
grant as revenue.
This change in accounting policy has been accounted for
retrospectively and the comparative statements for 2010 have
been restated. The effect of the change is tabulated below.
Opening retained earnings for 2010 have been increased by
R350 000.
28
The effect of the change on the 2010 Annual Financial
Statement is as follows:
Increase in revenue - 350 000
Decrease in net deficit for year - 350 000
Decrease in deferred income - 350 000
Worldcup Expenditure
Cost of tickets acquired (no
tickets were acquired)
Purchases of worldcup apparel - -
7 188 -
Annual Report 2011
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