Expenditure And Losses (Case Law)

Question 1

Labat Case
(cash principle)

Answer 1

Expenditure is the action of spending funds, disbursements or compensation. Hence the amount of money spent.

Question 2

Labat Case
(Non cash principle)

Answer 2

Expenditure refers to disbursements of other assets of monetary value (that is a non cash item with a monetary value).

Question 3

Labat Case
(Creation of a liability principle)

Answer 3

Expenditure accordingly requires a diminution or at the very least a movement of assets of the person who expends.

Question 4

Joffe & Co (Pty) Ltd case

Answer 4

A loss is an involuntary deprivation suffered, whereas expenditure is a voluntary payment of money.