Maranguka Annual Report 2024 - Flipbook - Page 17
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. All revenue is stated
net of the amount of goods and services tax (GST). Revenue is recognised for the major business
activities as follows:
Grants
Grants are received from the government and other non‐government bodies. Grants received on the
condition that speci昀椀ed services are delivered, or conditions are ful昀椀lled, are considered reciprocal.
These grants are initially recognised as a liability and revenue is recognised as services are performed
or conditions ful昀椀lled. Revenue from non‐reciprocal grants is recognised when the company obtains
control of the funds.
Other revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Expenditure
All expenditure is accounted for on an accruals basis and has been classi昀椀ed under headings that
aggregate all costs related to the category.
Cash and cash equivalents
Cash and cash equivalents include cash on hand, and deposits held at call with 昀椀nancial institutions.
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost,
less a provision for impairment. Collectability of trade receivables is reviewed on an ongoing basis.
Debts which are known to be uncollectible are written off. A provision for impairment is established
when there is objective evidence that the company will not be able to collect all amounts due
according to the original terms of receivables.
Property, plant and equipment
Recognition and measurement
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment losses. Cost includes expenditure that is directly attributable to the
acquisition of the asset. Gains and losses on disposals are determined by comparing proceeds with
carrying amount. These are included in the statement of comprehensive income.
Subsequent costs
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic bene昀椀ts associated with the item will 昀氀ow
to the company and the cost of the item can be measured reliably. All other repairs and maintenance
are charged to the statement of comprehensive income during the 昀椀nancial period in which they
are incurred.
Carrying Amount
The carrying amount of property, plant and equipment is reviewed annually by the company to
ensure that it is not in excess of the recoverable amount from those assets. The recoverable amount
is assessed on the basis of the expected net cash 昀氀ows that will be received from the assets’
employment and subsequent disposal. The expected net cash 昀氀ows are discounted to their present
values in determining recoverable amounts.
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