Interfront 2023 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2023 127 FINANCIAL INFORMATION PART Notes to the Financial Statements Figures in Rand 2023 2022  Going concern The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. A major portion of revenue is currently attributable to a single customer, the Shareholder. This is expected to continue in the near future.  Reconciliation between budget and statement of financial performance SARS as principal of its wholly owned subsidiary, incorporates Interfront in its parliamentary and ultimate statutory accountability processes. Interfront is included inter alia in the SARS strategic plan, budget, and monthly and annual reporting, as well as the consolidated annual financial statements. Interfront functions primarily as a service provider supporting customs modernisation. Within these overall objectives, Interfront is governed by its Board under the close scrutiny of SARS. Interfront is thus excluded from the detailed reporting requirements based on paragraph 3 GRAP 24. Net deficit per the statement of financial performance (9 793 627) (6 383 966)  Change in estimate Property, plant and equipment Management assesses the useful life of property, plant and equipment and intangible assets annually. The estimated useful lives of the asset classes below were revised with the following impact on depreciation charges: 2023 Prior estimate Current estimate Change in estimate Depreciation Change in net book value Leasehold improvements 12 years 13 years (336 705) 498 554 86 376 Furniture & fittings 5 to 15 years 5 to 16 years (17 606) 182 717 19 242 Security equipment 12 years 13 years (1 545) 1 627 1 896 IT equipment 3 to 12 years 3 to 13 years (1 199 916) 3 140 303 978 280 (1 555 772) 3 823 201 1 085 794 2022 Prior estimate Current estimate Change in estimate Depreciation Change in net book value Leashold improvements 10 years 12 years (472 203) 525 531 94 787 Furniture & fittings 5 to 10 years 5 to 15 years (149 111) 180 363 123 170 Security equipment 10 years 12 years (2 752) 1 780 1 978 IT equipment 3 to 10 years 3 to 12 years (1 735 870) 2 540 275 1 088 324 IT software 3 to 5 years 3 to 12 years (690) 893 483 555 (2 360 626) 4 141 432 1 308 814