Departments of Finance

climbmoujeanteaSoftware and s/w Development

Dec 13, 2013 (3 years and 6 months ago)

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P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

1

Departments of Finance

Municipalities

May

2008


GRAP 23 READINESS ASSESSMENT


The Board published a Standard of GRAP on
Revenue from Non
-
exchange
Transactions (Taxes and Transfers)
in March 2008. The Standard

deals with the
recognition, measurement and dis
closure of revenue generated from non
-
exchange
transactions.


Non
-
exchange transactions are those transactions where the public sector entity
receives resources from another party, without directly giving approximately equal value
in exchange. Typical exa
mples of non
-
exchange revenue in the municipal environment
include:



Equitable share allocations and conditional grants received from provincial
government.



Assessment rates levied by the municipality.



Fines.



Donations, in cash, or through the receipt o
f goods and/or services.


One of the responsibilities of the Board is to determine transitional provisions for
Standards of GRAP once the Minister of Finance

has determined an implementation
date
. In developing transitional provisions the Board considers t
he
current accounting
framework used by entities to pre
pare their financial statements

as well as the capacity
of entities to implement the Standard.


The Board has drafted a series of questions to enable it to assess how entities currently
account for va
rious non
-
exchange revenue transactions. The responses to those
questions will highlight to the Board what areas are problematic
,

and determine whether
or not transitional provisions could alleviate some of those problem areas.


It would be greatly appreci
ated if you could complete the attached questionnaire and
retur
n it to us

by the 30
th

of June 2008
. Your inputs into this

process

are highly valued.


Yours sincerely


Erna Swart
,
Chief Executive Officer


P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

2


GRAP 23 READINESS ASSESSMENT


Outline and purpose

of the questionnaire

What is the purpose of
questionnaire?

The Board published a Standard of GRAP on
Revenue from Non
-
exchange
Transaction (Taxes and Transfers)

in March 2008. The purpose of this
questionnaire is to assess the readiness of municipalities

to implement the
Standard.

Once the Minister of Finance has determined an effective date for this Standard, it
will replace the current guidance for revenue from non
-
exchange transactions in
GAMAP 9.

By when should the
questionnaire be
completed?

It woul
d be appreciated if the questionnaire could be completed and sent back to

the ASB by no later than the 30
th

of June

2008.

Who should complete
the questionnaire?

Ideally the questionnaire should be completed by the chief financial officer,
director/head
of finance, or a senior person in the finance function who is
responsible for preparing the financial statements, and/or is responsible for
accounting for revenue from non
-
exchange transactions.

How should the
questionnaire be
completed?

The questionnai
re
can be completed as follows:



electronically in Micosoft Word and the completed document mailed to
jeaninep@asb.co.za



in hardcopy and faxed to 011 697 0666


To whom should the
completed
questionnaires be sent?

Jeanine Poggiolini.

Any queries regarding the completion of the templ
at
e should be
made using
the e
-
mail address above, or on 011 697 0660.


P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

3

Basic information

Name of municipality


Name and contact details of person
completing this questionnaire

Name
:

Position:

Telephone:

e
-
mail:

What accounting framework do you
apply (e.g. GRAP/GAAP, IMFO)? Please
provide specific details.





P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

4


Questionnaire

Ref.

Area

Response

1.

What are non
-
exchange transactions?


Non
-
exchange transactions

are transactions t
hat are not exchange transactions. In a non
-
exchange
transaction, an entity either receives value from another entity without directly giving approximately equal
value in exchange, or gives value to another entity without directly receiving approximately e
qual value in
exchange.


Revenue from non
-
exchange transactions arise where an entity receives resources (cash, goods or
services) from another party, and provides no or only nominal consideration, directly to the other party

in
return
.

Typical examples in
clude:



Equitable share allocations and conditional grants received.



Fines.



Assessment rates levied.



Donations received.

1.1

What revenue does your municipality generate
from non
-
exchange revenue transactions?

Please provide specific examples
.


2.

Rec
ognition and measurement of revenue from non
-
exchange transactions


Recognition


When should an asset and revenue or a liability be recognised in the statement of financial
position

The Standard of GRAP on
Revenue from Non
-
exchange Transactions

(Taxes an
d Transfers)

follows an
assets and liabilities approach to recognising revenue (this approach is different from GRAP 9 on
Revenue
from Exchange Transactions
).

This approach means that the following process should be followed:

Debit leg



Has an entity
phys
ically
received an asset (cash, other monetary assets, physical assets, or services)
, or
does it have an enforceable claim to receive an asset
?
For example, an entity has an enforceable claim
over an asset when it signs a contractual agreement with a donor

to receive a certain amount of money
on a certain date or for a period of time.


P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

5



䥦 y敳Ⱐ摯敳⁩琠to湴牯n 瑨tt⁡ss整e



A渠n湴nty⁣o湴牯ls⁡ 慳s整eif:

-

䥴Ic慮 re杵l慴a 慮d 慣c敳s 瑨t 扥n敦i瑳 瑯tt桡琠慳s整e攮e⸠慮 e湴nty c慮 say wh漬 睨敮 慮搠how a渠
慳s整eis

畳敤Ⱐ,n搠dh攠e湴nty b敮敦i瑳⁦r潭⁴ 攠e慳栠hr⁳敲eic攠e潴o湴n慬 来n敲慴ed⁢y⁴桥 慳s整e†



䥦⁡ ⁥ tity⁣潮瑲ols⁡ 慳se琬⁣慮 i琠牥tia扬y敡s畲攠瑨攠e慩r⁶alu攠ef⁴ 攠慳s整e



䥦⁴ 攠e慩r⁶alu攠ef⁴ 攠慳s整⁣慮⁢ ⁲敬i慢ly敡s畲敤Ⱐ
瑨t⁡ s整eis⁲散潧湩se
d⸠

Credit leg



A渠n湴nty畳琠t散id攠wh整桥r⁴ e⁣r敤ite朠gs:

-

A⁣潮瑲i扵tio渠nrom n敲e

-

Ai慢ilityⰠ,r

-

剥Re湵e
.



䥦 瑨t r散敩p琠潦 慮 慳s整em敡湳 瑨慴a瑨攠p慲ay 瑲慮sf敲ei湧 t桥 慳s整e
(t桥 瑲a湳f敲潲)
r散敩v敳 愠r敳i摵al
i湴nr敳t in

t桥 湥t 慳s整e

潦 瑨t 敮瑩ty r散eivi湧 t桥 慳s整e(r散ipi敮琩
, 瑨敮 瑨t cr敤i琠le朠is 摥敭敤 瑯t扥
愠a潮瑲i扵ti潮⁦rom n敲e

(慮搠dr敤i瑥t⁴ ⁴桥⁳瑡瑥t敮琠tf⁣桡n来s⁩渠n整e慳s整s)




E湴i瑩敳 潦瑥t r散敩v攠慳s整e s畢j散琠瑯ts瑩灵l慴io湳⸠S瑩灵l慴a潮s im灯s攠c敲瑡en lim
i瑡tio湳 潮 桯w an
慳s整emay⁢攠ese搮dS瑩p畬a瑩潮s⁣a渠ni瑨tr⁲e煵ir攠eh慴:

-

A渠n湴nty 畳敳⁡ 慳s整ei渠n⁳灥cific⁷ y

(r敳瑲ic瑩o湳)

-

A渠n湴nty 畳敳⁡ 慳s整ei渠n⁳灥cific⁷ y 潲⁲整ern
s

i琠to⁴ 攠era湳f敲潲

(c潮摩ti潮s)




䥦 瑨t r散敩灴p潦 慮 慳s整em敡湳 t
桡琠瑨t r散i灩敮琠h慳 慮 潢lig慴a潮 瑯t慣琯灥rf潲o i渠愠c敲瑡e渠way 潲
杩v攠扡ck 瑨t 慳s整e瑯t瑨t 瑲慮sf敲潲 畮摥r c敲瑡e渠co湤itio湳Ⱐ瑨t cr敤i琠l敧 is a li慢ility (r散潧湩se搠i渠
瑨t⁳瑡t敭敮琠tf⁦i湡湣ial⁰潳i瑩潮).



䍯湤i瑩潮s⁧iv攠物s攠瑯to扬ig慴aon
s


:

-

T桥y 慲攠a湦潲o敡扬攻

-

T桥y 慲攠s畦fici敮tly s灥cific (攮e⸠s灥cific q畡n瑩ty of 杯潤s a湤 s敲vic敳 t漠b攠灲pvi摥dⰠ潲ot桥
湡瑵牥t潦⁡ s整e⁴ ⁢ ⁡ 煵ir敤)⁡湤⁡ 攠e潮i瑯t
敤 潶敲⁴桥e灥ri潤 ⁴ 攠era湴n⁡湤

-

T桥⁴牡湳f敲潲⁨ s⁡ 灡s琠桩s瑯ty ⁲敱uirin朠
瑨攠ess整s⁴ ⁢ ⁲e瑵牮t搠df 琠ts敤 慳⁳灥cifi敤⸠



䥦 慮 潢lig慴a潮 數is瑳Ⱐ慮 敮瑩ty 摥cre慳敳 瑨t 潢lig慴ao渠慳 慮搠w桥渠i琠f畬fills 瑨t c潮摩ti潮s 潦 瑨t
慲a慮来m敮琠tn搠牥d潧湩ses⁲敶敮略 ⁴ 攠e慭攠emo畮琮†




Wh敲攠湯

潢li条ti潮
數is瑳,⁡ ⁥湴nty

r散o杮is敳⁲敶敮略⁩渠nh攠e瑡t敭敮琠tf⁦i湡湣i慬 灥rf潲m慮c攮e


Measurement



At what amount is the asset, liability or revenue recognised

Asset


P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

6



T桥⁡ s整eis敡s畲敤⁡琠t慩r⁶慬略⸠



F慩r val略 is 瑨t
慭潵湴nt桡琠睯wld 扥 灡id 扥tw敥渠a willin朠buyer a湤
愠睩llin朠sell敲e慳 灡r琠潦 慮
arm’s length transaction.



F慩r v慬略 ca渠b攠d整ermi湥搠by: A 灲楣e i渠a渠慣瑩v攠m慲k整e 愠r散敮琠瑲慮s慣瑩潮 灲楣e f潲o愠simil慲a
慳s整e(瑡ti湧 in瑯t慣c潵湴n慮y 散潮潭ic 潲o潴o敲ef慣瑯牳 瑨t琠may 桡v攠ch慮ge搠si湣攠t桡琠瑲a湳
慣瑩o渠
瑯tk⁰ 慣攻e畳i湧

val畡瑩o渠n潤敬
c慳栠hlow⁡湤 灲p扡bility 慮慬ysis)


Liability



䵥慳畲u搠d琠瑨t 扥s琠tstim慴a ⁴ 攠em潵湴nr敱畩re搠瑯ts整el攠e桥扬i条瑩o渮n


The sections that follow deal with application issues that may arise when applying

the Standard to specific

non
-
exchange revenue

transactions.

2.1

Equitable share allocation


Equitable share allocations represent the municipality’s share of revenue raised at a national level. These
慬l潣慴a潮s⁡牥⁳整eo畴ui渠nh攠ec桥摵l敳⁴ ⁴ e⁄ vi
si潮 潦⁒敶e湵攠Ac琮t

䥮f慣c潵n瑩n朠g潲⁥煵i瑡扬攠s桡r攠ell潣a瑩o湳Ⱐ瑨攠e畮ici灡lity⁳桯畬d⁣潮si摥r:

E愩

th敮 i琠 桡s 慮 敮f潲o敡扬攠 claim 瑯t r散敩v攠 瑨t 慬l潣慴a潮 i.攮e 摯敳 瑨攠 慮湯u湣敭敮琠 潦 瑨t
慬l潣慴a潮s in 瑨t 䑏oA giv攠ris攠t漠a渠敮f潲o敡扬攠cl慩m㼠E
q桥 f慣琠瑨t琠t桥se 慬l潣慴io湳 慲a 灡id
潶敲e愠a敲i潤 ⁴ m攠eo


湯琠t敡渠n桡琠tn⁥ 瑩ty is潴o敮瑩tl敤⁴ ⁴桥m⸩

E戩

䍡渠t桥⁥湴nty敡s畲攠瑨e⁡ l潣慴i潮
E慳s整⤠
r敬i慢ly?

Ec)

Ar攠eh敲攠eny
co湤i瑩潮s

慴t慣桥搠d漠oh攠ell潣慴a潮?

E搩

䥦

c潮di瑩潮s⁥ is琬t
r散o
g湩s攠e渠nss整e慴af慩r⁶慬略Ⱐ慮搠愠a潲o敳灯n摩湧⁡ 潵湴n潦⁲敶e湵e⸠

c潲⁥o慭灬攺

A渠e湴nty is 慬l潣慴a搠刵0m i渠慮 a灰r潰ri慴i潮 慣琬 whic栠i琠will r散eiv攠q畡rt敲ey i渠慣c潲o慮c攠睩瑨t 愠
灡ym敮琠sc桥摵l攠慧re敤 睩瑨tt桥 releva湴n瑲敡s畲y⸠b湴i瑩敳 慲攠en
瑩tle搠瑯tt桥ir 慮湵慬 慰灲潰ria瑩潮s 慴
瑨t s瑡牴t潦 瑨t fi湡湣i慬 y敡r⸠.桥r攠慲攠湯 s瑩灵l慴i潮s 慳 瑯t桯w 瑨t 敮tity sh潵l搠畳攠瑨t 慬l潣慴io渠潲o瑨t琠
瑨t m潮ey s桯畬d 扥 r整ern敤 if 湯琠畳敤. q桥 敮瑩ty 灲潣敳s敳 瑨t f潬lo睩n朠e湴物敳 慴at桥 扥杩n湩湧

潦 瑨t
fi湡湣ial y敡r:

䑲⁁ll潣慴i潮⁴ 扥⁲散eiv敤†††† ††† †††††o㔰m

††
E潲⁂慮kⰠ,f⁴ 攠e慳栠hs⁲ec敩v敤)

䍲†††⁒敶敮u攠e† ††† ††††††† ††† †††††† ††††刵0m

㈮ㄮ2

䡯w 摯 y潵 c畲u敮tly 慣c潵湴nf潲o敱畩t慢l攠s桡re

l潣慴a潮s a琠瑨攠m畮icip慬ity? mle慳攠灲潶i摥 a
摥瑡il敤 慣c潵湴in朠灯licy, 摥慬i湧 睩瑨t w桥渠

慳s整e lia扩lity 潲o r敶e湵e
is r散潧湩s敤 慮搠 慴a


P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

7

what amount.

2.1.
2

Would applying the requirements of the Standard,
as described above, result in different

accounting
to what you currently apply? Please provide
specific details.


2.1.3

Would you be able to apply the requirements of
the Standard in accounting for equitable share
allocations? If no, please provide details of why,
and what areas of applicatio
n or interpretation
may be difficult.


2.2

Conditional grants


Conditional grants are specific purpose allocations made to entities. The accounting for conditional grants
and equitable share allocations are similar, except that it is more likely that con
ditions will be attached to
grants rather than equitable share allocations.
Municipalities therefore need to examine the terms of each
allocation carefully to determine whether
conditions
exist
. Where conditions exist, a liability should be
recognised.

In accounting for conditional grants, the municipality should consider:

(a)

When it has an enforceable claim to receive the grant i.e. does the announcement of the grant in the
DORA give rise to an enforceable claim?

(b)

Can the entity measure the grant (asset) r
eliably?

(c)

Are there any
conditions

attached to the allocation? Conditions mean that the grant must be used in a
certain way, or it must returned (i.e. it is probable that an entity will incur an outflow of resources


敩瑨敲⁢y⁵ i湧⁴桥 杲慮琠i渠愠a敲瑡en

wayⰠ潲⁢y⁲整erni湧⁩琠瑯⁴桥⁴ 慮sf敲潲)⸠.

E搩

䥦 y敳Ⱐr散o杮is攠慮 慳s整e慴af慩r val略Ⱐ慮搠愠lia扩lity 慴a瑨t 扥s琠敳瑩m慴a 潦 瑨攠慭潵湴nr敱uir敤 瑯
s整ele 瑨攠lia扩lity E睨wch e煵als 瑨攠f慩r valu攠潦 t桥 慳s整e潮 i湩tial r散o杮i瑩潮)⸠ As a湤 睨w渠t桥

c潮摩tio湳⁡牥⁳慴isfi敤Ⱐ牥d畣攠e桥i慢ility⁡ 搠牥d潧湩s攠牥ee湵攮

E攩

䥦 ⁣潮di瑩潮s⁥ is琬t
r散潧湩s攠e渠nss整e慴af慩r⁶慬略Ⱐ慮搠愠a潲o敳灯n摩湧⁡ 潵湴n潦⁲敶e湵e⸠

c潲⁥o慭灬攺

A渠e湴nty is 慬l潣慴a搠愠o㘰m c潮摩瑩o湡l 杲慮琠i渠t桥 䑏剁⸠
q桥 敮瑩ty b
敬iev敳 i琠桡s 慮 e湦潲o敡扬e
cl慩m⁡ ⁴ 攠e敧i湮i湧 ⁴ 攠ei湡湣i慬 y敡rⰠ扡se搠d渠n敧isl慴a潮.
q桥⁴ rms ⁴ 攠er慮t⁳瑡te⁴ 慴ai琠t畳琠te
畳敤 i渠 愠 sp散ific m慮湥r 潲o r整er湥d 瑯t t桥
瑲a湳f敲潲 E慳sum攠 瑨t琠 瑨ts m敥瑳 瑨t 摥finiti潮 潦 a
c潮摩tio温⸠A
琠敡c栠煵慲瑥a, 瑨t 敮瑩ty 慳s敳s敳 瑨t琠it 桡s 畳敤 瑨t 杲慮琠慳 f潬lows㨠nㄺ1㄰┻%n㈺2ㄵ┻
n㌺3ㄵ┻⁑㐺44〥

q桥⁡ c潵湴n湧⁥湴物敳 睯wl搠d攠es⁦潬lows㨠

A琠瑨攠e敧i湮i湧 ⁴ 攠eina湣i慬 ye慲a


P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

8

Dr Grant to be received R60m

(reduce as and whe
n cash received)

Cr Liability R60m

At the end of each quarter:

Dr Liability

(R60mX%conditions met)

Cr Revenue

(R60mX%conditions met)

At year end, R16m remai
ns as a liability.

2.2.1

How does the municipality currently account for
conditional grants? Please provide a detailed
accounting policy, dealing with when
an asset,
liability or revenue
is recognised and at what
amount.


2.2.2

Would applying the requir
ements of the Standard,
as described above, result in different accounting
to what you currently apply? Please provide
specific details.


2.2.3

Would you be able to apply the requirements of
the Standard in accounting for conditional grants?
If no, please

provide details of why, and what
areas of application or interpretation may be
difficult.


2.3

Assessment rates

(taxes)


Municipalities levy assessment rates on the value of ratepayers


灲p灥rty.
Mu湩cip慬i瑩敳 畳攠t桥 s慭e
cri瑥物愠i渠慣c潵湴i湧

f潲o 慳
s敳sm敮琠r慴as 慳 f潲o 敱ui瑡tl攠s桡r攠all潣慴a潮s 慮搠杲慮瑳Ⱐ數c数琠瑨t琠
慳s敳sm敮琠 r慴as Ewhich 慲攠 敳s敮tially 瑡t敳 levi敤 o渠 i湤ivi摵慬s 潲o 敮瑩瑩敳
)
Ⱐ 慲攠 u湵s畡lly 湯t
c潮摩tio湡l 瑨t 敮tity⁰敲e潲mi湧
慮y⁳敲eic攠eir散瑬y⁩渠牥n畲u
⸠.


䥮f慣c潵nt
in朠g潲⁡os敳sme湴nr慴asⰠ,桥畮icip慬ity⁳h潵l搠d潮si摥r:

E愩

th敮 i琠桡s 慮 e湦潲o敡扬攠cl慩m 瑯tr散敩v攠瑨t
ra瑥t⸠q桩s may 扥 灲敳cri扥搠in l敧isl慴io渮n
E
q桥 f慣t
瑨慴t
瑨ts攠r慴as may b攠c潬l散瑥t ov敲e愠灥ri潤 潦 瑩m攠mi杨琠湯琠m敡渠
瑨t琠慮 敮瑩ty is 湯t

敮ti瑬敤 瑯
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P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

9

the Act, entities should levy and is entitled to these taxes at the start of each financial year. The entity
determines that it should levy R750m in prope
rty taxes at the start of the financial year.

The accounting entries are as follows:

Dr Property taxes

to be received R750m

(split between individual ratepayers accounts)

Cr Revenue


R750m

2.3.1

How does the municipality currently account for
assessment rates? Please provide a detailed
accounting policy, dealing with when
an
asset
,
liability or
revenue is recognised and at what
amount.


2.3.2

Wo
uld applying the requirements of the Standard,
as described above, result in different accounting
to what you currently apply? Please provide
specific details.


2.3.3

Would you be able to apply the requirements of
the Standard in accounting for assessment

rates?
If no, please provide details of why, and what
areas of application or interpretation may be
difficult.


2.4

Fines


Fines are levied by municipalities because sp
ecific laws have been breached.
It is unlikely that conditions
exist for a fine, as g
overnment is not required to provide anything in return for receiving the fine.
Municipalities should not recognise as revenue those fines that it collects on behalf of another party.

In accounting for fines, municipalities should consider the following:

(a)

When it has an enforceable claim to receive the fine? This may depend on the type of fine, and
whether or not it is subject to further legal processes, such as trial/appeal in court.

(b)

Can the entity measure the fine reliably?
An entity may need to make an
estimate of the amount of
revenue to be collected based on past experience.

(c)

Are there any
conditions

attached to the allocation?

(d)

If no, recognise an asset at fair value, and a corresponding amount of revenue.


P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

10

2.4.1

How does the municipality currently
account for
fines? Please provide a detailed accountin
g policy,
dealing with when an
asset
, liability or
revenue is
recognised and at what amount.


2.4.2

Would applying the requirements of the Standard,
as described above, result in different accounting
t
o what you currently apply? Please provide
specific details.


2.4.3

Would you be able to apply the requirements of
the Standard in accounting for fines? If no, please
provide details of why, and what areas of
application or interpretation may be difficult
.


2.5

Donations


Donations of assets may include physical assets such as inventories, items of property, plant and
equipment being donated to a municipality, or it may include free services that are provided to the
municipality e.g. technical assistance
.

For goods received by the municipality, it must consider the following:

(a)

When it has an enforceable claim to receive the asset? This may be prescribed in an agreement
between the municipality and the donor.

(b)

Can the entity measure the asset reliably?

(c)

Are there any
conditions

attached to the receipt of the asset?

(d)

If yes, recognise an asset at fair value, and a liability at the best estimate of the amount required to
settle the liability (which equals the fair value of the asset on initial recognition)
. As and when the
conditions are satisfied, reduce the liability and recognise revenue.

(e)

If no, recognise an asset at fair value, and a corresponding amount of revenue.

Municipalities
are not
required to recognise the value of services received

in the st
atements of financial
position and performance
. It must however disclose the fair value of the services received in the notes to
the financial statements.

2.5.1

How does the municipality currently account for
donations

(separate between goods and service
s
received)
? Please provide a detailed accounti
ng
policy, dealing with when an

asset
, liability or
revenue

is recognised and at what amount.



P O Box 74129

Lynnwood Ridge

0040

Tel. 011 697 0660

Fax. 011 697 0666

11

2.5.2

Would applying the requirements of the Standard,
as described above, result in different accounting
to wha
t you currently apply? Please provide
specific details.


2.5.3

Would you be able to apply the requirements of
the Standard in accounting for donations? If no,
please provide details of why, and what areas of
application or interpretation may be difficult.


2.6

General


2.6.1

Does your municipality have any other types of
non
-
exchange revenue not specifically dealt with
in this document?

If yes, please provide details of the transactions,
as well as how you currently account for them.


2.6.2

Would you b
e able to comply with the
requirements of the Standard immediately, or
would a period of time be required to make any
necessary changes to systems etc.? If yes, what
period of time?



Disclaimer: The examples and discussions in this document are used for
illustration purposes
only and may not reflect actual circumstances and events.
In determining the appropriate
accounting treatment for revenue from non
-
exchange transactions, entities should examine each
transaction on its merits using the using the princ
iples in the Standard of GRAP on Non
-
exchange
Revenue (Taxes and Transfers).