Notes to the Company annual financial statements | Note 8

8. Cash and cash equivalents
 

Accounting policy

Cash and cash equivalents are classified to be measured at amortised cost.

Cash and cash equivalents are measured at initial recognition at fair value, and are subsequently measured at amortised cost using the effective interest rate method.

For the purposes of the statement of cash flows, cash and cash equivalents comprise cash at bank and in hand.

Cash and cash equivalents consist of: 2022
R'000 		2021
R'000
Bank balances 2 865 1 414

For details of cross surety securities provided, refer to note 13.

Credit quality of cash at bank, excluding cash on hand

The credit quality of cash at bank can be assessed by reference to external credit ratings.

Credit rating (Moody’s)1 2022
R'000 		2021
R'000
Ba2 FNB (2021: Ba2) 1 432 101
Ba2 Investec (2021: Ba2) 1 433 1 313
2 865 1 414
1 Credit ratings disclosed are the most recent published credit ratings.

The fair value of cash and cash equivalents approximates their carrying amounts.

Exposure to currency risk

The carrying amounts of cash and cash equivalents are denominated in South African rand.