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1.13.3. Cash and cash equivalents
Cash and cash equivalents in the Statement of Financial Position comprise cash at banks and on hand, including investments
and short-term deposits with an original maturity of three months or less. For the purpose of the Cash Flow Statement,
cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.
1.14. Related parties
The HSRC operates in an economic sector currently dominated by entities directly or indirectly owned by the South
African Government. As a consequence of the constitutional independence of the three spheres of government in
South Africa, only entities within the influence of the Department of Science and Technology (DST) are considered to
be related parties.
Key management is defined as being individuals with the authority and responsibility for planning, directing and
controlling the activities of the entity. We regard all individuals from the level of executive management and council
members as key management per the definition of the financial reporting standard.
Close family members of key management personnel are considered to be those family members who may be expected
to influence, or be influenced by key management individuals, in their dealings with the entity.
1.15. Comparative figures
When necessary, comparative figures have been adjusted to conform to changes in presentation in the current period.
The nature and reason for such reclassifications and restatements are also disclosed. Refer to Note 26 for a detailed
disclosure of prior year errors recorded.
1.16. Prepayments and advances
Payments made in advance to suppliers are in respect of goods and services in line with the business of the entity. An
itemwill be recognised as a prepayment if the payment was made in advance and at the reporting period these goods
and services had not been delivered or rendered to the entity. There is no contractual right to receive a refund in cash
or another financial instrument from the suppliers.
1.17. Irregular and fruitless and wasteful expenditure
Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any
applicable legislation, including:
•
The PFMA (Act No. 1 of 1999); or
•
The State Tender Board Act, (Act No. 86 of 1968).
Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable
care been exercised. All irregular, fruitless and wasteful expenditure is recognised against the specific class of expense
to which it relates and is disclosed in a note to the Financial Statements when it has been identified.
1.18. Standards issued and not yet effective
At the date of authorisation of these Financial Statements, the following Standards of GRAP were in issue, but not yet
effective:
•
GRAP 20 – Related Parties;
•
GRAP 32 – Service Concession Arrangements: Grantor;
•
GRAP 34 – Separate Financial Statements;
•
GRAP 35 – Consolidated Financial Statements;
•
GRAP 36 – Investments in Associated and Joint Ventures;
•
GRAP 37 – Joint Arrangements;
•
GRAP 38 – Disclosure of Interest in Other Entities;