138 FINANCIAL STATEMENTS for the year ended 30 September 2025 Accounting policies 1. General information Grain South Africa Group is incorporated in South Africa. Grain South Africa group of entities (the group) consist of: Grain South Africa a non-profit organisation (the organisation), Phahama Grain Phakama NPC a non-profit company, Nampo (Pty) Ltd a private company with limited assets and activities and Commercial Producers Trust is a trust involved in agricultural research. The Grain South Africa group of entities and the organisation function to promote the interest 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 consolidated and separate annual financial statements have been prepared on a going concern basis in accordance and in compliance with the IFRS for SME® Accounting Standard 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 year presented, unless otherwise stated. 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 COMMON CONTROL Common control transactions Transactions that involve entities that are controlled by the same party before and after the transaction are referred to as common control transactions. These transactions are excluded under the scope of IFRS for SME® section 19: Business Combinations and therefore the organisation has developed its own policy. The organisation takes into account the particular facts and circumstances surrounding the transaction. In the prior financial year, assets and liabilities were transferred between holding and subsidiary entities. The organisation has applied predecessor accounting to these transactions. The predecessor method of accounting transfers assets and liabilities at the predecessor carrying values, requiring no fair value measurement. No goodwill is recognised on transfer and any difference between the consideration given and the aggregate carrying value of the assets and liabilities is included in equity. All transfers that occurred within the organisation took place at the carrying values of the assets and liabilities. The organisation has used the prospective presentation method. Any assets and liabilities are incorporated prospectively from the date on which the business combination between entities under common control occurred. The organisation has used this method as it is impractical to retrospectively present the transaction. 2.2 CONSOLIDATION Subsidiaries Subsidiaries are all entities (including special purpose entities) over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases. The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
RkJQdWJsaXNoZXIy NTI0MzQ=