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
Notes to the Annual Financial Statements
Figures in Rand
11.
2017 2016
8 290 000 8 253 000
Disposal of a significant asset (continued)
Carrying values
Carrying values of the assets
Facts and circumstances of the disposal
The NEC (Accounting Authority) approved the disposal of the investment property on 5 August 2013
with a proviso that proceeds from the disposal be ring-fenced for the acquisition of administrative
buildings for the respective offices.
Further approvals required
There were no further approvals required in this financial year. Approval of the Executive Authority was
sought in 2015 in terms of the PFMA and the organisation’s materiality and significance framework.
The expected sale or transfer date is 31 March 2018.
12.
Revaluation surplus reserve
The revaluation surplus is non-distributable.
Opening balance
2 259 566
2 259 566
The revaluation reserve results from the revaluation of property, plant and equipment while still owner
occupied. It remains after treating the same assets as investment property since they were vacated by
the entity.
Upon transfer of the owner occupied property to investment property the revaluation surplus is
treated in the following manner:
•
any remaining part of the increase is credited directly to net assets in revaluation surplus. On
subsequent disposal of the investment property, the revaluation surplus included in net assets
may be transferred to accumulated surpluses or deficits. The transfer from revaluation surplus
to accumulated surpluses or deficits is not made through surplus or deficit.
205
SALGA ANNUAL REPORT
2016/17