Grain SA Annual Report 2022

116

FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. General information

Grain South Africa is a non-profit organisation incorporated in South Africa.

Grain South Africa is an organisation that functions to promote the interests of grain producers within

South Africa. The registered office is Block C, Alenti Office Park, 457 Witherite Road, The Willows, Pretoria.

2. Basis of preparation and summary of significant

accounting policies

These annual financial statements have been prepared on a going concern basis in accordance

and in compliance with the International Financial Reporting Standards for Small and Medium-sized

Entities issued by the International Accounting Standards Board. The principal accounting policies

applied in the preparation of these financial statements are set out below. These policies have

been consistently applied to all the years presented, unless stated otherwise.

These financial statements have been prepared under the historical cost convention except for other

financial assets measured at fair value and are presented in South African Rands.

2.1 SIGNIFICANT JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY

Critical judgements in applying accounting policies

Management did not make critical judgments in the application of accounting policies, apart from

those involving estimations, which would significantly affect the financial statements.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future and other key sources of estimation

uncertainty at the end of the reporting period that have a significant risk of causing a material

adjustment to the carrying amounts of assets and liabilities within the next financial year.

Undue cost or effort

The Executive believes that due to the fact that there are no significant stakeholders in the organisa-

tion whom the fair value of the investment property will benefit, the obtaining annual valuations for

each property, would result in excessive costs (through valuer's fees) in comparison to the benefits

that the users of these financials would receive from having the information.

The Executive has therefore applied the undue cost or effort exemption in respect of the organisa-

tion’s investment properties. As a result, investment property has been transferred to property, plant

and equipment and is accounted for in terms of the relevant accounting policy set out in note 2.5.

2.2 INVESTMENT IN SUBSIDIARY

An investment in a subsidiary is accounted for at cost less accumulated impairment losses.

The consolidated financial statements incorporate the financial statements of the organisation and its

wholly owned subsidiary. All intragroup transactions, balances, income and expenses are eliminated.

2.3 INCOME

Income is defined as management fees, rental income and members’ contributions.

Other income consists of sponsorships, commercial income, other sundry income and

cost recovery.

Accounting

POLICIES

FINANC

IAL

STATEMEN