The external auditors are responsible for reporting on the fair presentation of the annual accounts. If an asset's recoverable service value is less than its carrying amount, the asset's carrying amount is reduced to its recoverable service value. An impairment loss is recognized for cash-generating units if the recoverable service value of the unit is less than the carrying amount of the unit.
If the recoverable amount of an asset is less than its carrying amount, the asset's carrying amount is reduced to its recoverable amount. An impairment loss is recognized for cash-generating units if the recoverable amount of the unit is less than the carrying amount of the unit. If any such indication exists, the municipality estimates the recoverable service value of the asset.
An impairment loss is recognized for non-cash-generating units if the unit's recoverable amount is less than the unit's carrying amount. The gain or loss arising from the settlement of a financial liability is calculated as the difference between the settlement value and the accounting value of the liability.
REVENUE 1,15,1
EMPLOYEE BENEFITS
BUDGET INFORMATION
RELATED PARTIES
RELATED PARTIES (CONTINUED)
SIGNIFICANT JUDGEMENT AND SOURCES OF ESTIMATING UNCERTAINTY
Capital commitments are disclosed in the Annual Financial Statements when the letter of award is accepted by the contractor for capital commitments and when the order for operating commitments is issued. Operating liabilities disclosed in the annual financial statements represent only the contractual balance committed to operating expenses.
EVENTS AFTER REPORTING DATE
CHANGES IN ACCOUNTING POLICY
Mergers
Accounting policy adopted for the merger
Merging Entities
The variance is due to additional EAT purchased/donated compared to the budgeted amount. The budgeted amount did not have the effect of the landfill that was part of the error correction in the previous year. The deviation is the provision for long service award and landfill which was not taken into account in the budget.
ANNUAL ACCOUNTS FOR THE YEAR ENDED 30 JUNE 2016 Statement of comparison of budget and actual amounts.
HLABISA LOCAL MUNICIPALITY
Statement of financial position as at 30 June 2016
Liabilities
Statement of financial performance for the year ended 30 June 2016
Cash flow statement for the year ended 30 June 2016
CASH FLOW FROM OPERATING ACTIVITIES Receipts
Trade and other receivables from non-exchange transactions (continued)
Reconciliation of allowance for impairment of trade receivables
A register with the data required under Article 63 of the Municipal Financial Management Act is available for inspection at the municipality's registered office. Additions to WIP: are listed under the Additions column in the reconciliation above and are included in the financial statements when the invoice is received from the contractor. Transfers from WIP: are listed in the Transfers column in the reconciliation above and represent transfers from WIP to Community assets and infrastructure.
This transfer occurs on the day the contractor has confirmed the completion of the project. The register of fixed assets, which complies with the requirement of GRAP 17, is maintained by the municipality. Leasing assets, recorded in the register of fixed assets, serve as collateral for financial lease obligations.
Payables from exchange transactions
Interest earned - non exchange transaction
- Contingent Assets
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were performed as at 30 June 2016 by Onepangaea, a Fellow of the Actuarial Society of South Africa. The present value of the defined benefit obligation and the related current and past service pension costs have been determined using the Projected Unit Credit Method. The municipality's liquidity risk is a result of the funds available to cover future obligations.
Since the municipality has no significant interest-bearing assets, the municipality's income and operating cash flow are essentially independent of changes in market interest rates. The Local Government Election was held on the 3rd August 2016 and the merger date was determined as the 10th August 2016. Assets and liabilities will be derecognised at their carrying amounts on the date of the merger which is the 9th August 2016.
Any difference between the discontinued assets and liabilities and the consideration received, if any, is recognized in accumulated profit or loss. Assets and liabilities of Hlabisa Local Municipality and The Big Five False Bay Municipality will be recognized at their accounting values on the date of establishment of the new municipality, i.e. on August 10, 2016. Any difference between the assets and liabilities recognized and the consideration received, if any, is recognized in accumulated profit or consolidated loss on the new.
Nashua Zululand Municipality is currently in a lawsuit with the supplier Nashua Zululand regarding the cancellation of the lease agreements regarding photocopiers. The dispute concerns the illegal invasion and occupation of land owned by the local Hlabisa municipality. As revealed by the legal representatives, the reason the potential settlement is "unknown" is that when the application was filed in court, no amount of money was demanded from Nashua.
Increase in the short-term part of the financial lease - Document Manager leasing 347 324 Increase in the long-term part of the financial lease - Document Manager leasing 190 029 Calculated balance as of June 30. Business and other liabilities from non-exchange operations 2015. Increase in accruals due to the management of financial lease documents Unpaid interest 59 903 Calculated balance as of June 30 statement of financial operations. This basis assumes that funds will be available to finance future operations and that the realization of funds and the settlement of liabilities, contingent liabilities and assumed liabilities will occur in the ordinary course of business.
The municipality's ability to continue operations depends on a number of factors. The most important of these is that the state continues to finance ongoing operations for the municipality in order to restore the municipality's solvency.
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 30 JUNE 2016
Previously Reported
