National Consumer Tribunal Annual Report 2011/12 National Consumer Tribunal 2011-12 | Page 83

ACCOUNTING POLICIES
for the year ended 31 March 2011
1 ACCOUNTING POLICIES
The annual financial statements have been prepared in accordance with Statements
of Generally Recognised Accounting Practice and the Public Finance Management Act
(PFMA), Act 1 of 1999 as amended. The principal accounting policies adopted in the
preparation of these financial statements are set out below and are, in all material respects,
consistent with those of the previous year, except for the change in accounting policy (refer
to Note 27). The financial statements have been prepared on a historic cost basis and
accounting policies are consistent with prior years.
1.1 Basis of preparation
The financial statements have been prepared in accordance with the effective Standards
of Generally Recognised Accounting Practices (GRAP) including any interpretations,
guidelines and directives issued by the Accounting Standards Board.
The standards relevant to the National Consumer Tribunal are listed below:
GRAP 1: Presentation of Financial Statements
GRAP 2: Cash Flow Statements
GRAP 3: Accounting Policies, Changes in Accounting Estimates and Errors
GRAP 4: The Effects of Changes in Foreign Exchange Rates
GRAP 5: Borrowing Costs
GRAP 9: Revenue from Exchange Transactions
GRAP 12: Inventories
GRAP 13: Leases
GRAP 14: Events After the Reporting Date
GRAP 17: Property, Plant and Equipment
GRAP 19: Provisions, Contingent Liabilities and Contingent Assets
GRAP 102: Intangible Assets
IPSAS 20: Related Party Disclosures
IFRS 7:Financial Instruments: Disclosures
IAS 32: Financial Instruments: Presentation
IAS 39: Financial Instruments: Presentation and Disclosures
IAS19:Employee Benefits
The cash flow statement was prepared in accordance with the direct method.
1.2
Significant judgements
In preparing the Annual Financial Statements, management is required to make estimates
and assumptions that affect the amounts represented in the annual financial statements
and related disclosures. Use of available information and the application of judgement
is inherent in the formation of estimates. Actual results in the future could differ from
these estimates which may be material to the Annual Financial Statements. Significant
judgements include:
Annual Report 2011
national consumer tribunal | page 81