2017

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Determining of other information for audit reporting ISA 720 (revised)

A variety of reporting requirements and voluntary reporting practices exist in South Africa, which may give rise to the inconsistent application of ISA 720 (Revised). The auditor has certain responsibilities under ISA 720 (Revised) when other information has been identified in an entity’s annual report. View PDF
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New accounting developments and proposed amendments

The IASB has recently issued a number of papers with proposed amendments to reporting standards. Although these amendments are not yet finalised it is important to take note of these proposed changes. View PDF
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Public sector: Treatment of fully depreciated assets still in use

The treatment of fully depreciated assets is a contentious issue in the public sector space. Many public sector entities utilise assets beyond their accounting useful lives because of issues such as budget constraints. This article highlights the main issues surrounding fully depreciated assets and how the Accounting Standards Board (ASB) has set out to address these issues. View PDF
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Responding to Non-compliance with Laws and Regulations

Responding to Non-compliance with Laws and Regulations is an international ethics standard for auditors and other professional accountants. It sets out a first-of-its-kind framework to guide professional accountants in what actions to take in the public interest when they become aware of a potential illegal act, known as non-compliance with laws and regulations, or NOCLAR, committed by a client or employer. View PDF

2016

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Amendments becoming effective 1 January 2017

Amendments becoming effective 1 January 2017. View PDF
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Interest-free loans to Trust

The 2016 draft Taxation Laws Amendment Bill introduced a new section - Section 7C - to the Income Tax Act which provides detail and measures to prevent Estate Duty and Donations Tax avoidance through the transfer of assets to a Trust on interest-free loan accounts. View PDF
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King IV Report

The fourth revision (King IV) was already published for public comment during March 2016 and is expected to be released soon. View PDF

Reporting on Going Concern

In 2015 the IAASB issued revisions to ISA 570, Going Concern. The revised Standard will become applicable for all audits of financial statements ending on or after 15 December 2016 View PDF

Reporting of key audit matters in the audit report

In 2015 the IAASB issued the new ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report. This Standard will become applicable for all audits of financial statements ending on or after 15 December 2016 View PDF

Amendments to IFRS 15 Revenue from Contracts with Customers

This newsletter is to give an insight to the new published guidance adding clarification to certain areas of the Standard as well as guidance on practical expedients. View PDF

Amendments to IFRS 2 - Classification and Measurement of Share-based Payment Transactions

This newsletter is to give an insight to the new published guidance on the treatment of cash settled share-based payments per IFRS 2. View PDF

IFRS 16 Leases

IFRS 16 replaces IAS 17 and all related interpretations, and completes the IASB’s project to improve the financial reporting of leases. View PDF

2015

Frequently asked questions

The technical department receives many requests for technical assistance during the year. This month’s Tip summarises some of the frequently asked questions. View PDF

IFRS 9 Financial Instruments: Hedge accounting

Phase 3 of the IFRS 9 project provides requirements for hedge accounting which aligns hedge accounting more closely with risk management, establishes a more principles-based approach to hedge accounting and addresses inconsistencies and weaknesses in IAS 39’s hedge accounting model. View PDF

IFRS 9 Financial Instruments: Impairment

Phase 2 of the IFRS 9 project lays out the impairment requirements related to the accounting for expected credit losses on the entity’s financial assets and commitments to extend credit. View PDF

IFRS 9 Financial Instruments: Classification and measurement

The IASB’s IFRS 9 Financial Instrument project aimed to replace IAS 39 was done in 3 phases: Classification and Measurement, Impairment, and Hedge Accounting. This month we focus on the first phase, classification and measurement. View PDF

Statement of Cash Flows

The objective of a Statement of Cash Flows is to provide useful information on how an entity generates and utilizes cash in respect of historical changes in the cash and cash equivalents. View PDF

IFRS for SME's

Limited amendments to IFRS for SME’s have been made after consideration of feedback received during the initial comprehensive review performed by the IASB. View PDF

Promotion of Access to Information

The PAIA came into effect in 2000 to give effect to the constitutional right of access to any information held by the state, as well as information held by another person that is required for the exercise or protection of any right. View PDF

Tax Matters

Reportable arrangements are arrangements perceived to have characteristics that may lead to undue tax benefits. A number of new transactions to be regarded as reportable arrangements were published during March 2015. View PDF

IFRS 15

IFRS 15 is a hot topic as we move closer to the effective date* for implementation. This month’s Tip is a reminder of the principles and implications of the new standard. View PDF

Disclosure Initiatives

The final Standard Disclosure Initiative (Amendments to IAS 1) was published in December 2014. The amendments aim to improve the presentation and disclosure in IFRS. View PDF

2015 / 2016 Budget Highlights

This month’s newsletter focuses on the budget 2015/2016 and the impact on you. View PDF

New Auditor's Report

Investors and other stakeholders have been requesting that for the purpose of public interest auditors need to provide greater transparency about the audit.View PDF