South African Local Government Association
Schedule 3A public entity i.t.o. the Public Finance Management Act, 1999 and recognised i.t.o. the
Organised Local Government Act, 1997
Annual Financial Statements for the year ended 31 March 2017
Accounting Policies
1.7
Financial instruments (continued)
Subsequent measurement of financial assets
and financial liabilities
SALGA measures all financial assets and financial
liabilities after initial recognition using the
following categories:
•
possible to reliably estimate the cash flows or the
expected life of a financial instrument (or group
of financial instruments), the entity shall use the
contractual cash flows over the full contractual
term of the financial instrument (or group of
financial instruments).
Impairment and uncollectibility of financial
assets
Financial instruments at amortised cost.
All financial assets measured at amortised cost
are subject to an impairment review.
The amortised cost of a financial asset or
financial liability is the