CTFA Annual Report 2019

ACCOUNTING POLICIES 1. General information Cosmetic Toiletry and Fragrance Association of South Africa is a non - profit organisation incorporated in South Africa. 2. Basis of preparation The financial statements of Cosmetic Toiletry and Fragrance Association of South Africa have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and the Companies Act of South Africa. The financial statements have been prepared under the historical cost convention. They are presented in South African Rand. The preparation of financial statements in conformity with the International Financial Reporting Standard for Small and Medium- sized Entities requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the association's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3. 3. Critical accounting estimates and judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 3. Critical accounting estimates and assumptions The association makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. COSMETIC TOILETRY AND FRAGRANCE ASSOCIATION OF SOUTH AFRICA 34