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
1.12 Employee benefits (continued) 1.13 Provisions and contingencies
Defined benefit plans Provisions are recognised when:
A defined benefit plan is a post-employment
benefit plan where the entity’s obligation is
to provide the agreed benefits to current and
former employees; and the actuarial risks fall, in
substance, on the entity. •
For defined benefit plans, the cost of providin