Greenpeace Environmental Organisation NPC (Registration

Greenpeace Environmental Organisation NPC

(Registration Number 2008/004583/08)

Financial Statements

for the year ended 31 December 2019

1



Financial Statements for the year ended 31 December 2019

General Information

Country of incorporation and domicile South Africa

Nature of business and principal activities The company is engaged in the promotion and

advocacy for fundamental human rights with respect

to the environment.

Directors Ketty Olive Lubandi (Board Chair)

Charles Paul Iheanacho Abani

Joanna Kerr

Registered Office Ground Floor

293 Kent Avenue

Randburg

Johannesburg 2194

Postal Address Postnet Suite 125

Private Bag X09

Melville

Johannesburg 2109

Bankers Standard Bank of South Africa

ECO Bank

Mercantile Bank

Auditors Bonani Chartered Accountants

Secretary

Company Registration number 2008/004583/08

Level of assurance These financial statements have been audited in

compliance with the applicable requirements of the

Companies Act of South Africa.

Preparer Gert Cornelius I. Combrink CA(SA)

Wilfred Andile Present

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Index

Page

Directors' Responsibilities and Approval 4 - 5

Directors' Report 6 - 7

Independent Auditors' Report 8- 9

Statement of Financial Position 10

Statement of Comprehensive Income 11

Statement of Changes in Accumulated Funds and Reserves 12

Statement of Cash Flows 13

Accounting Policies 14 - 22

Notes to the Financial Statements 23 - 30

Detailed Statement of Comprehensive Income 31

The reports and statements set out below compromise the financial statements presented to the head

office:

3




Directors' Responsibilities and Approval

The directors are required in terms of the Companies Act of South Africa to maintain adequate accounting

records and are responsible for the content and integrity of the financial statements and related financial

information included in this report. It is their responsibility to ensure that the financial statements fairly

present the state of affairs of the company as at the end of the financial year and the results of its

operations and cash flows for the period then ended, in conformity with International Financial Reporting

Standards. The external auditors are engaged to express an independent opinion on the financial

statements.

The financial statements are prepared in accordance with International Financial Reporting Standards and

are based upon appropriate accounting policies consistently applied and supported by reasonable and

prudent judgements and estimated.

The directors acknowledge that they are ultimately responsible for the system of internal financial control

established by the company and place considerable importance on maintaining a strong control

environment. To enable the directors to meet these responsibilities, the directors set standards for internal

control aimed at reducing the risk of errors or loss in a cost effective manner. The standards include the

proper delegation of responsibilities within a clearly defined framework, effective accounting procedures

and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored

throughout the company and all employees are required to maintain the highest ethical standards in

ensuring the company's business is conducted in a manner that in all reasonable circumstances is above

reproach. The focus on risk management in the company is on identifying, assessing, managing and

monitoring all known forms of risk across the company. While operating risk cannot be fully eliminated, the

company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and

ethical behaviour are applied and managed within predetermined procedures and constraints.

The code of corporate practices and conduct has been integrated into company strategies and operations.

The directors are of the opinion, based on the information and explanations given by management, that the

system of internal control provides reasonable assurance that the financial records may be relied on for the

preparation of the financial systems. However, any system of internal financial control can provide only

reasonable, and not absolute, assurance against material misstatement or loss.

The external auditors are responsible for independently auditing and reporting on the company's financial

statements. The financial statements have been examined by the company's external auditors and their

report is presented on page 9 and 10.

4




Directors' Report

The directors submit their report for the year ended 31 December 2019.

1 Review of Activities

Main business and operations

Registered Office Ground Floor

293 Kent Avenue

Randburg

Johannesburg 2194

Postal Address Postnet Suite 125

Private Bag X09

Melville

Johannesburg 2109

2 Going Concern

3 Events of the reporting period

The company is engaged in the promotion and advocacy for fundamental human rights with respect to

the environment, with particular concern for conservation, rehabilitation and protection of the natural

environment and the rights to secure an environment that is not harmful to people's health and well-

being and to undertake such actions and activities as may serve these purposes, primarily within the

republic of South Africa, the Democratic Republic of the Congo, Senegal, and Cameroon, but also in other

parts of Africa and the world.

The operating results and state of affairs of the company are fully set out in the attached financial

statements and apart from the following event do not in our opinion require any further comment.

Net deficit of the company was R968,429 (2018: R2,507,730 surplus) . Greenpeace Environmental

Organisation NPC has been approved as a public benefit organisation in terms of section 30 of the income

tax act and the receipts and accruals are exempts from income tax in terms of section 10(1)(cN) of the

act.

The financial statements have been prepared on the basis of accounting policies applicable to a going

concern. The 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.

The directors are not aware of any matter or circumstances arising since the end of the financial year.

6




Directors' Report

4 Directors' interests in contracts

5 Authorised and issued share capital

6 Directors

Name

Ketty Olive Lubandi (Board Chair)


Joanna Kerr

7 Auditors

8 Secretary

9 Prescribed Officer

No material contracts in which the directors have interest were entered into during the year.

The prescribed officer of the company is Lagi Toribau.

The company has no share capital as it is a non-profit company of the Companies Act of South Africa.

The directors of the company during the year and to the date of this report are as follows:

Bonani Chartered Accountants (South Africa) were appointed auditors of Greenpeace Environmental

Organisation NPC with effect from the financial year ended 31 December 2014.

The secretary of the company is Wilfred Andile Present.

7

8

Independent Auditors Report

Bonani Chartered Accountants Inc.

Building 3, Clearwater Office Park, Cnr

Millenium and Christiaan de Wet Roads

Strubensvalley, 1724

(tel) 010 541 0591 (fax) 086 545 6404

(email) [email protected]

Reg No. 2009/024810/21

To the members of Greenpeace Environmental Organisation NPC.

We have audited the annual financial statements of Greenpeace Environmental Organisation NPC, which comprise the statement of financial position as at 31 December 2019, the statement of comprehensive income, statement of changes in equity and the statement of cash flows for the year then ended, the notes, a summary of significant accounting policies and other explanatory information, as set out on pages 10 to 30. Directors Responsibility for the Annual Financial Statements

The company’s directors are responsible for the preparation and fair presentation of these annual financial statements in accordance with the International Financial Reporting Standards, and requirements of the Companies Act of South Africa. This responsibility includes designing, implementing and maintaining and internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors' Responsibility

Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance as to whether the annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion

In our opinion, the annual financial statements present fairly, in all material respects, the financial position of Greenpeace Environmental Organisation NPC as at 31 December 2019, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards, and the requirements of the Companies Act of South Africa. Other reports required by the Companies Act

As part of our audit of the financial statements for the year ended 31 December 2019, we have read the Directors’ Report for the purpose of identifying whether there are material inconsistencies between these reports and the audited financial statements. The directors’ report is the responsibility of the directors. Based on reading the directors’ Report, we have not identified material inconsistencies between this report and the audited financial

9

statements. However, we have not audited the Directors’ report and accordingly do not express an opinion on the report. Supplementary information

The supplementary information as set out on page 31 does not form part of the financial statements and is presented as additional information. We have not audited this information and accordingly do not express an opinion thereon.

______________________________

Per: M. N. Radebe

Chartered Accountant (South Africa)

Registered Auditor

12 May 2020




Statement of Financial Position as at 31 December 2019

2019 2018

Notes ZAR ZAR

ASSETS

Non-Current Assets

Property, plant and equipment 6 3,306,338 4,186,820

Current Assets

Due from Greenpeace International and regional offices 15 1,634,471 -

Other receivables 7 3,458,522 6,799,394

Cash and cash equivalents 8 20,120,723 20,778,996

25,213,716 27,578,390

Total Assets 28,520,054 31,765,210

FUNDS BALANCE AND LIABILITIES

Long-term Liabilities

Loan from related parties 9 - -

Current Liabilities

Loan from related parties - short-term portion of loan 9 - 1,202,753

Due to Greenpeace International and regional offices 15 7,661,473 9,422,957

Trade and other payables 8,730,707 8,043,196

10 16,392,180 18,668,906

Fund Balance

Accumulated funds 12,127,874 13,096,304

Total fund balance and liabilities 28,520,054 31,765,210

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Statement of Comprehensive Income for the year ended 31 December 2019

2019 2018

Notes ZAR ZAR

INCOME

Contributions from Greenpeace International and regional

offices 15 89,662,490 80,150,784

Other Contributions and Donations 25,142,416 18,863,970

Interest income 298,769 335,706

Profit on exchange differences 2,248,563 2,471,375

Profit on disposal of assets - 10,295

Total income 117,352,238 101,832,130

Less: Fundraising expenditure 27,214,882 23,126,272

Total income less fundraising expenditure 90,137,356 78,705,858

EXPENDITURE

Campaigns 34,491,513 29,709,790

Oceans 5,857,716 4,486,138

Forests 15,652,318 12,693,820

Sustainable Agriculture and Genetic Engineering 4,312,886 3,771,692

Climate and Energy 5,415,479 5,373,454

Campaign Coordination 3,253,114 3,384,686

Campaign support 19,180,162 13,918,148

Media and Communications 12,147,288 9,496,868

Public information and outreach 542,248 421,706

Action support 6,490,626 3,999,574

Organisational support and Indirect Costs 35,375,745 32,133,580

Interest Cost 2,047 3,340

Foreign exchange loss 2,056,189 430,597

Loss from disposal of assets 130 2,673

Total non-fundraising expenditure 17 91,105,786 76,198,128

Net surplus/(deficit) -968,430 2,507,730

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Statement of Accumulated Reserves for the year ended 31 December 2019

Total

Fund Balance Fund Balance

Notes ZAR ZAR

Accumulated Fund Balance at 1 January 2018 10,588,574 10,588,574

Surplus for the year 2,507,730 2,507,730

Accumulated Fund Balance at 31 December 2018 13,096,304 13,096,304

Surplus for the year (968,430) (968,430)

Accumulated Fund Balance at 31 December 2019 12,127,874 12,127,874

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Statement of Cash Flows for the year ended 31 December 2019

2019 2018

Notes ZAR ZAR

CASH FLOWS FROM OPERATING ACTIVITIES

Surplus/(deficit) before interest and profit/loss on disposal of assets (1,265,022) 2,167,742

Add back depreciation 2,194,346 1,833,668

(Increase)/decrease in receivables 1,706,400 (3,900,214)

Increase/(decrease) in payables (1,073,973) 4,915,460

Net profit/(loss) on disposal of assets (129) 7,622

Net interest received 296,722 332,366

Cash flows from operating activities 1,858,344 5,356,644

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (1,353,703) (2,515,940)

Disposal of property, plant and equipment 39,839 335

Cash flows used in investing activities (1,313,864) (2,515,605)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash raised from new loans - -

Loans paid (1,202,753) (252,290)

Cash flows from financing activities (1,202,753) (252,290)

Net increase/(decrease) in cash (658,272) 2,588,749

Cash and cash equivalents at 1 January 20,778,996 18,190,247

Cash and cash equivalents at 31 December 8 20,120,724 20,778,996

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Accounting policies

1 Basis for preparation

1.1 Significant judgements and sources of estimation uncertainty

Residual value and useful lives of property and equipment

1.2 Property and equipment

(i)

(ii)

(iii)

Property and equipment is initially measured at cost.

The financial statements have been prepared in accordance with International Financial Reporting

Standards, and the Companies Act of South Africa. The financial statements have been prepared on the

historical cost basis and incorporate the principal accounting policies set out below. They are

presented in South African Rands.

In preparing the financial statements, management is required to make estimates and assumptions

that affect the amounts presented in the financial statements and related disclosures. Use of available

information and the application of judgement is inherent in the formation of estimates. Actual results

in the future could differ from these estimates which may be material to the financial statements.

Significant judgements include:

The company calculates depreciation on property and equipment on a straight-line basis so as to write

off the cost of assets over their expected useful lives. The economic life of an asset is determined

based on existing wear and tear, economic and technical ageing, legal and other limits on the use of

the asset to generate future cash flows, the company may accelerate depreciation charges to reflect

the remaining useful life of the asset or record an impairment loss.

The company determines residual values on an annual basis. Because residual values are the expected

value at the end of an asset's useful life, the following process of estimation was required to estimate

the useful life as at year end. Management determines the residual values and useful lives of the assets

with reference to the company's policy for depreciation for that specific class of asset as well as the

performance of the asset. Management reviews the remaining useful lives of all assets in the last year

of their useful lives.

The cost of an item of property and equipment is recognised as an asset when:

it is probable that future economic benefits association with the item will flow to the company,

the cost of the item can be measured reliably, and

the cost of the item is in excess of R5,000

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Accounting policies

1.2 Property and equipment (continued)

Item Average useful life

Furniture and fittings 6 years

Motor vehicles 5 years

Office equipment 3 years

Computer equipment 3 years

Campaign equipment 5 years

Lease hold improvements Remaining period of current lease

The gain or loss arising from the derecognition of an item of property or equipment is included in profit

or loss when the item is derecognised. The gain or loss arising from the derecognition of an item of

property or equipment is determined as the difference between the net disposal proceeds, if any, and

the carrying amount of the item. An asset's carrying amount is written down immediately to its

recoverable amount if the asset's carrying amount is greater than the asset's recoverable amount.

The useful lives of items of property and equipment have been assessed as follows:

The depreciation charge for each period is recognised in profit or loss unless it is included in the

carrying amount of another asset.

Costs include costs incurred initially to acquire or construct an item of property and equipment and

costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised

in the carrying amount of an item of property or equipment, the carrying amount of the replaced part

is derecognised. All other repairs and maintenance are charged to profit and loss during the financial

period in which they are incurred.

Costs include costs directly attributed to bringing the asset to working condition for use as intended by

management.

The residual value, useful life and depreciation method of each asset is reviewed, and adjusted if

appropriate, at the end of each reporting period. If the expectations differ from previous estimates,

the change is accounted for as a change in accounting estimate.

Property and equipment is depreciated on the straight line basis over it's expected useful lives to the

estimated residual value.

Property and equipment is carried at cost less accumulated depreciation and any impairment losses.

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Accounting policies

1.3 Financial instruments

Classification

(i) Loans and receivables

(ii) Financial liabilities measured at amortised cost

Initial recognition and measurement

Subsequent measurement

Loans and receivables are subsequently measured at amortised cost, using the effective interest

method, less accumulated impairment losses.

Financial liabilities at amortised cost are subsequently measured at amortised cost, using the effective

interest method.

Classification depends on the purpose for which the financial instruments were obtained / incurred

and takes place at initial recognition. Classification is re-assessed on an annual basis, except for

derivatives and financial assets designated as at fair value through profit and loss, which shall not be

classified out of the fair value through profit and loss category.

The company classifies financial assets and financial liabilities into the following categories:

Financial instruments are recognised initially when the company becomes a party to the contractual

provisions of the instruments.

The company classifies financial instruments, or their component parts, on initial recognition as a

financial asset, a financial liability or an equity instrument in accordance with the substance of the

contractual arrangement.

Financial instruments are measured initially at fair value, except for equity investments for which a fair

value is not determinable, which are measured at cost and are classified as available-for-sale financial

assets.

For financial instruments which are not at fair value through profit and loss, transaction costs are

included in the initial measurement of the instrument.

Transaction costs on financial instruments at fair value through profit and loss are recognised in profit

or loss.

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Accounting policies

1.3 Financial instruments (continued)

Impairment of financial assets

Receivables and payables from / to related parties

At each reporting date the company assesses all financial assets, other than those at fair value through

profit or loss, to determine whether there is no objective evidence that a financial asset or group of

financial assets has been impaired.

For amount due to the company, significant financial difficulties of the debtor, probability that the

debtor will enter bankruptcy and default on payments are all considered indicators of impairment.

Impairment losses are recognised in profit or loss.

Impairment losses are reversed when an increase in the financial asset's recoverable amount can be

related objectively to an event occurring after the impairment was recognised, subject to the

restriction that the carrying amount of the financial asset at the date that the impairment was reversed

shall not exceed what the carrying amount would have been had the impairment not been recognised.

Reversals of impairment losses are recognised in profit and loss except for equity investments

classified as available for sale.

Where financial assets are impaired through use of an allowance account, the amount of the loss is

recognised in profit and loss within operating expenses. When such assets are written off, the write off

is made against the relevant allowance account. Subsequent recoveries of amounts previously written

off are credited against operating expenses.

These include loans to and from related companies and are recognised initially at fair value plus direct

transaction costs.

Loans to group companies are classified as loans and receivables.

Loans from group companies are classified as financial liabilities and are measured at amortised cost.

17




Accounting policies


Trade and other receivables

Trade and other payables

Cash and cash equivalents

Bank overdraft and borrowings

Bank overdrafts and borrowings are initially measured at fair value net of transaction costs incurred,

and are subsequently measured at amortised cost, using the effective interest rate method. Any

difference between the proceeds (net of transaction costs) and the settlement or redemption of

borrowings is recognised over the term of the borrowings in accordance with the company's

accounting policy for borrowing costs.

Trade and other receivables are classified as loans and receivables.

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost,

using the effective interest rate method.

Cash and cash equivalents comprise cash on hand and demand deposits, and other short-term highly

liquid investments with original maturities of 3 months or less and bank overdrafts that are readily

convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

These are initially and subsequently recorded at fair value.

Trade receivables are measured at initial recognition at fair value, and are subsequently measured at

amortised cost using the effective interest rate method. Appropriate allowances for estimated

irrecoverable amounts are recognised in profit or loss when there is objective evidence that the asset

is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter

bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days

overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is

measured as the difference between the asset's carrying amount and the present value of estimated

future cash flows discounted at the effective interest rate computed at initial recognition.

The carrying amount of the asset is reduced through the use of an allowance account, and the amount

of the loss is recognised in profit or loss within operating expenses. When a trade receivable is

uncollectable, it is written off against the allowance account or trade receivables. Subsequent

recoveries of amounts previously written off are credited against operating expenses in profit or loss.

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Accounting policies


1.4 Income tax

1.5 Leases

Operating leases - lessee

1.6 Impairment of assets

If the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset

is reduced to its recoverable amount. That reduction is an impairment loss.

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is

recognised immediately in profit or loss. Any impairment loss of a revalued asset is treated as a

revaluation decrease.

Bank overdrafts and borrowings are classified as current liabilities unless the company has an

unconditional right to defer settlement of liability for at least 12 months after the statement of

financial position date.

Taxation was not provided for, as the company is a non-profit company incorporated in terms of the

Companies Act and has been granted a tax exemption certificate in terms of section 10(1)(cN) of the

Income Tax Act.

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to

ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and

rewards incidental to ownership.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

The difference between the amounts recognised as an expense and the contractual payments are

recognised as an operating lease liability. This liability is not discounted.

Any contingent rents are expensed in the period they are incurred.

The company assesses at each end of the reporting period whether there is any indication that an asset

may be impaired. If any such indication exists, the company estimates the recoverable amount of the

asset.

The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to

sell and its value in use.

19




Accounting policies

1.6 Impairment of assets (continued)

1.7 Employee benefits

Short-term employee benefits

1.8 Revenue

(a) Grant income

Direct payments made by Greenpeace International in respect of expenditure relating to the South

African operations are recognised as income in the period in which such payments are made, and the

corresponding amounts included in the expenditure so as to reflect more comprehensively the

operating costs of the South African operations.

An entity assesses at each reporting date whether there is any indication that an impairment loss

recognised in prior periods for assets other than goodwill may no longer exist or may have decreased.

If any such indication exists, the recoverable amounts of those assets are estimated.

The increased carrying amount of an asset other than goodwill attributable to a reversal of an

impairment loss does not exceed the carrying amount that would have been determined had no

impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss of assets carried at a cost less accumulated depreciation or

amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an

impairment loss of a revalued asset is treated as a revaluation increase.

The cost of short-term employee benefits, (those payable within 12 months after the service is

rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as

medical care), are recognised in the period in which the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render

services that increase their entitlement or, in the case of non-accumulating absences, when the

absence occurs.

The expected cost of profit sharing and bonus payments is recognised as an expense when there is a

legal or constructive obligation to make such payments as a result of past performance.

All other income is generally brought to account in the period in which it was received.

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Accounting policies

1.8 Revenue (continued)

(b) Interest income

(c) Donations income

(d) Montly donation income collected via debit orders

Repayment of grant related income is applied first against any unamortised deferred credit set up in

respect of the grant. To the extent that the payment exceeds any deferred credit, or where no

deferred credit exists, the repayment is recognised immediately as an expense.

Repayment of a grant related to an asset is recorded by increasing the carrying amount of the asset or

reducing the deferred income balance by the amount payable. The cumulative additional depreciation

that would have been recognised to date as an expense in the absence of the grant is recognised

immediately as an expense.

Interest is recognised in surplus or deficit, using the effective interest rate method.

Donations income is recognised as revenue when it is paid into the bank account.

Donation income collected via monthly debit orders are held in a Mercantile bank clearing account for

the duration of the cooling-off period stipulated by the Consumer Protection Act 68 of 2008. During

the cooling-off period the donor retains ownership of the funds and can recall their donation at any

time and for any reason in terms of the Act.

Greenpeace Environmental Organisation has no legally enforceable claim to donation income and only

gains ownership of donations when donations collected via debit orders are transferred from the

clearing account to the organisation's current account once the cooling-off period has passed.

Income is recognised when ownership is deemed to have transferred.

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Accounting policies

1.9 Translation of foreign currencies

Foreign currency transaction

(i) foreign currency monetary items are translated using the closing rate;

(ii)

(iii)

Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic

environment in which the entity operates (functional currency)

The financial statements are presented in South African Rands (ZAR), which is the company's functional

and presentation currency.

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign

currency amount the spot exchange rate between the functional currency and the foreign currency at

the date of the transaction.

At the end of the reporting period:

non-monetary items that are measured in terms of historical cost in a foreign currency are

translated using the exchange rate at the date of the transaction; and

non-monetary items that are measured at fair value in a foreign currency are translated using the

exchange rates at the date when the fair value was determined.

When a gain or loss on a non-monetary item is recognised to other comprehensive income and

accumulated in equity, any exchange component of that gain or loss is recognised to other

comprehensive income and accumulated in equity. When a gain to loss on a non-monetary item is

recognised in profit or loss, any exchange component of that gain or loss is recognised in profit or loss.

Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the

foreign currency amount the exchange rate between the Rand and the foreign currency at the date of

the cash flow.

Exchange differences arising on the settlement of monetary items or on translating monetary items at

rates different from those at which they were translated on initial recognition during the period or in

previous financial statements are recognised in profit or loss in the period in which they arise.

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Notes to the Financial Statements

2 New Standards and Interpretations

2.1 Standards and Interpretations Issued but not yet effective as at 31 December 2019

Standard Effective Date

IAS 1 Amendments on classification of liabilities as current or non-current 1 January 2022

1 January 2020

IFRS 17 Insurance contracts 1 January 2021

3 Risk Management

Capital risk management

The company has decided not to early adopt the following standards and interpretations, which have

been published and are mandatory for the company's accounting records for the future periods.

The company's objectives when managing capital are to safeguard the company's ability to continue as a

going concern in order to provide benefits for stakeholders and to maintain an optimal capital structure to

reduce the cost of capital.

The capital structure of the company consists of debt, which includes the borrowings disclosed in note 9

cash and cash equivalents, and equity as disclosed in the statement of financial position.

There are no externally imposed capital requirements.

IAS 8 Amendments to references on the conceptual framework in IFRS standards

There has been no changes to what the entity manages as capital, the strategy for capital maintenance or

externally imposed capital requirements from the previous year.

23





3 Risk Management (Continued)

Financial risk management

Price risk

Liquidity risk

2019 2018

Trade and other payables - less than 1 year 16,392,180 18,668,906

Cash flow and fair value interest rate risk

Credit risk

The company's activities expose it to a variety of financial risks: market risk (including currency risk, fair

value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

Surplus cash held by the company over and above the balance required for working capital management

is invested in interest-bearing current accounts.

The table below analyses the company's financial liabilities into relevant maturity groupings based on the

remaining period at the end of the reporting period to the contractual maturity date. The amounts

disclosed in the table are the contractual undiscounted cash flows:

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding

through an adequate amount of committed credit facilities. Due to the nature of the underlying business,

the company maintains flexibility in funding by keeping cash on hand.

The company does not hold any investment in listed securities, nor does it hold any commodities. The

company is therefore not exposed to price risk.

As the company has no significant interest bearing assets, the company's income and operating cash flows

are substantially independent of changes in market interest rates.

Potential concentration of credit risk consists principally of cash investments and deposits. The company's

main income stream is derived from grants received. Therefore, no trade receivables exist. The company

deposits cash surpluses with major banks of high quality credit standing.

24





3 Risk Management (Continued)

Foreign exchange risk

The company does not hedge its foreign currency fluctuations.

As the company receives funds that are denominated in foreign currency, there is an element of risk due

to fluctuations in the rate of exchange. The company is further exposed to currency risk to the extent that

some funds are held in foreign currency bank accounts.

The company conducts transactions with its head office in the Netherlands and other branches of the

head office. Transactions with these companies might result in receivables and payables denominated in

currency that is not in South African Rands.

25





4 Financial assets by category

Loans and Total Loans and Total

Receivables Receivables

Receivables (exclusive of repayments) 5,092,993 5,092,993 6,799,394 6,799,394

Cash and cash equivalents 20,120,723 20,120,723 20,778,996 20,778,996

25,213,716 25,213,716 27,578,390 27,578,390

5 Financial liabilities by category

Financial Total Financial Total

liabilities at liabilities at

amortised amortised

cost cost

Payables 16,392,180 16,392,180 18,668,906 18,668,906

16,392,180 16,392,180 18,668,906 18,668,906

6 Property and equipment

2019 2018

Cost Accumulated Carrying Cost Accumulated Carrying

Depreciation value Depreciation value

Software 609,582 (206,470) 403,112 214,664 (61,090) 153,574

Motor vehicles 475,739 (461,573) 14,166 501,092 (434,620) 66,472

Office equipment 1,901,773 (882,677) 1,019,096 2,157,890 (821,917) 1,335,973

Computer equipment 2,767,071 (1,588,579) 1,178,492 3,703,866 (2,080,945) 1,622,921

Campaign equipment 422,067 (157,020) 265,047 539,464 (419,333) 120,131

Leasehold Improvements 1,383,977 (957,552) 426,425 1,383,976 (496,227) 887,749

7,560,209 (4,253,871) 3,306,338 8,500,952 (4,314,132) 4,186,820

Reconciliation of property and equipment - 2019

Opening Additions Disposals Depreciation Closing

Balance Balance

Software 153,574 425,288 - (175,750) 403,112

Motor vehicles 66,472 - - (52,306) 14,166

Office equipment 1,335,973 158,131 - (475,008) 1,019,096

Computer equipment 1,622,921 577,840 (39,839) (982,430) 1,178,492

Campaign equipment 120,131 192,444 - (47,528) 265,047

Leasehold improvements 887,749 - - (461,324) 426,425

4,186,820 1,353,703 (39,839) (2,194,346) 3,306,338

The accounting policies for financial instruments have been applied to the line items below:

The accounting policies for financial instruments have been applied to the line items below:

2019 2018

2019 2018

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6 Property and equipment (continued)

Reconciliation of property and equipment - 2018

Opening Additions Disposals Depreciation Closing

Balance Balance

Software 30,922 157,639 - (34,987) 153,574

Motor vehicles 161,620 - - (95,148) 66,472

Office equipment 1,150,252 545,710 - (359,989) 1,335,973

Computer equipment 1,416,374 1,116,319 (335) (909,437) 1,622,921

Campaign equipment 170,804 - - (50,673) 120,131

Leasehold improvements 574,911 696,272 - (383,434) 887,749

3,504,883 2,515,940 (335) (1,833,668) 4,186,820

7 Receivables

2019 2018

Staff salary and expense advances 252,472 769,036

Prepayments 444,197 604,780

Lease deposits 1,427,825 1,381,942

South African Revenue Services - Value added tax 1,334,028 4,043,636

3,458,522 6,799,394

Amounts due from related parties 1,634,471 -

5,092,993 6,799,394

8 Cash and cash equivalents

Cash on hand 44,427 19,379

Bank balances 20,076,296 20,759,617

20,120,723 20,778,996

A register containing the information required by Regulation 25(3) of the companies regulations, 2011, is available for

inspection at the registered office of the company.

The depreciation charged to the statement of comprehensive income during the year amounted to R2,194,347 (2018:

R1,833,667)

Lease rentals amounting to R4,045,736 (2018: R3,719,552) relating to property and equipment are included in the

statement of comprehensive income as part of operating expenses.

For the purpose of the statement of cash flows, cash, cash equivalents and bank overdrafts include total cash assets less

bank overdrafts:

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9 Long-term liability

Notes 2019 2018

Loans from Greenpeace International - 1,202,753

Short-term portion of loans - 1,202,753

Minimum repayments due including interest

- within one year - 1,202,753

- in second to fifth year inclusive - -

- 1,202,753

These loans are with a related party, are unsecured, and bears interest at 0.3% per year

10 Trade and other payables

Short-term portion of loan - 1,202,753

Amounts due to related parties 7,661,473 9,422,957

Lease accrual 367,319 430,678

Deferred income 4,464,730 3,930,320

Accrued leave pay 1,309,053 999,846

Accrued expenses 1,269,562 1,455,737

Staff advances 98,631 4,615

Provision for bad debts - 427,550

Other payables 1,221,412 794,450

Trade and other payables at fair value 16,392,180 18,668,906

11 Income tax expense

12 Employee benefit expense

Salaries and Wages 64,992,151 50,086,346

Number of employees 90 88

13 Auditors remuneration

Fees 166,073 158,475

14 Commitments

Operating leases - as lessee (expense)

Minimum lease payments due

- within one year 2,088,971 1,934,232

- in second to final year inclusive 1,084,658 3,173,629

3,173,629 5,107,861

No provision has been made for 2018 or 2017 tax as the company has been granted a tax exemption certificate in terms of

section 10(1)(cN) of the Income Tax Act. This is due to the fact that the company is incorporated as a non-profit company in

terms of the Companies Act.

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15 Related parties

Head office Greenpeace International

Branch of head office Greenpeace Australia

Greenpeace USA

Greenpeace Germany

Greenpeace Belgium

Greenpeace United Kingdom

Greenpeace Canada

Greenpeace Asia

Greenpeace

Directors Ketty Olive Lubandi (Board Chair)


Joanna Kerr

Related party balances 2019 2018

Payables to related parties

Greenpeace International 7,661,473 9,422,957

Greenpeace National offices - -

7,661,473 9,422,957

Receivables from related parties

Greenpeace Germany 1,634,471 -

1,634,471 -

Related party transactions

Contributions/Grants received

Greenpeace International 84,995,065 78,781,047

Greenpeace National Offices 4,667,425 1,369,737

89,662,490 80,150,784

16 Compensation of board members and remuneration of Board appointees

The receivables and payables to and from related parties arise from the annual budget allocation and transfer from

Greenpeace International. It also includes expenditure paid on behalf of the entity by Head Office and branches of the Head

Office and expenditure paid on behalf of the Head Office and branches of the Head Office by the entity.

The Chair and Members of the entity do not receive a salary, but their essential expenses incurred while serving the entity

are refunded in line with the entity's policies.

The entity's Board appointed Prescribed Officer is delegated duties associated with an organisation's prescribed officers in

terms of the company Act and is compensated as follows:

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16 Compensation of board members and remuneration of Board appointees (continued)

Prescribed officer - for services as prescribed officer

2019 2018

Salaries 2,048,780 1,540,702

Other payments 484,697 134,821

Total 2,533,477 1,675,523

17 Annual aggregated non-fundraising expenditure by region

2019 2018

Congo Basin (Cameroon and the Democratic republic of the Congo) 15,652,318 12,693,820

Senegal 5,857,716 4,486,138

Kenya 4,312,886 3,771,692

South Africa 65,282,865 55,246,478

Total 91,105,785 76,198,128

18 Going concern

19 Events after the reporting period

20 Rounding

Small casting inconsistancies within the financial statements are due to rounding.

The directors are not aware of any matter or circumstance arising since the end of the financial year.

The 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.

30




Detailed Statement in support of Comprehensive income

for the year ended 31 December 2019

2019 2018

Notes ZAR ZAR

Operating expenses

Employee costs 12 64,992,151 50,086,346

Other employee related costs 5,904,472 3,058,246

Advertising costs 610,178 505,806

Auditors remuneration 13 166,073 158,475

Bad Debts - 8,110

Bank charges 491,984 398,719

Cleaning 567,087 573,800

Consulting and professional fees 8,852,050 11,520,599

Consumables 615,471 1,082,460

Depreciation 6 2,194,346 1,833,668

Health and safety 63,919 6,213

Hire 167,394 167,100

Interest paid 2,047 3,340

Lease rentals on operating lease 4,045,736 3,719,552

Legal expenses 491,176 321,206

Loss from disposal of assets 130 2,673

Loss on exchange differences 2,056,189 430,597

Motor vehicle expenses and insurance 739,873 589,481

Permits and fees 843,188 578,002

Postage 236,303 207,721

Printing and publishing 2,179,161 2,347,122

Repairs and maintenance 80,079 399,644

Security 447,663 528,840

Small parts 286,594 59,501

Subscriptions 2,399,271 2,050,610

Telephone and internet 4,870,778 4,961,895

Travel and accommodation 14,308,628 13,444,446

Utilities 245,285 178,903

Video and film production 449,457 101,326

118,306,682 99,324,401

31

Documents

Greenpeace Environmental Organisation NPC (Registration