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
1.19 Translation of foreign currencies
(continued)
•
When a gain or loss on a non-monetary item is
recognised directly in net assets, any exchange
component of that gain or loss is recognised
directly in net assets. When a gain or loss on a
non-monetary item is recognised in surplus or
deficit, any exchange component of that gain or
loss is recognised in surplus or deficit.
•
Cash flows arising from transactions in a foreign
currency are recorded in Rand by applying to
the foreign currency amount the ruling spot
exchange rate.
1.20 Fruitless and wasteful expenditure
Fruitless expenditure means expenditure which
was made in vain and would have been avoided
had reasonable care been exercised.
All expenditure relating to fruitless and wasteful
expenditure is recognised as an expense in
the statement of financial performance in the
year that the expenditure was incurred. The
expenditure is classified in accordance with the
nature of the expense, and where recovered, it
is subsequently accounted for as income in the
statement of financial performance.
1.21 Irregular expenditure
Irregular expenditure as defined in section 1 of
the PFMA is expenditure other than unauthorised
expenditure, incurred in contravention of or that
is not in accordance with a requirement of any
applicable legislation, including:
a) the PFMA; or
b) the State Tender Board Act, 1968 (Act No.
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