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IFRS 9: ECL on intercompany loans repayable on demand

IFRS 9 Financial Instruments became effective for periods beginning on or after 1 January 2018. IFRS 9 introduced the application of the “expected credit loss” model which differs from the incurred loss model applied in terms of the predecessor standard IAS 39 Financial Instruments. The expected credit loss model is applicable to all financial assets which are subsequently measured at amortised cost or fair value through other comprehensive income. This includes inter-company loans.View PDF

3-Stage Impairment Model – Intercompany Loans

IFRS 9 Financial Instruments became effective for periods beginning on or after 1 January 2018. IFRS 9 introduced the application of the “expected credit loss” model which differs from the incurred loss model applied in terms of the previous standard, IAS 39 Financial Instruments. The expected credit loss model is applicable to all financial assets subsequently measured at amortised cost or fair value through other comprehensive income. This applies to intercompany loans included in the separate financial statements.View PDF

IFRS Specialist: Centurion – Pretoria

To uphold technical and quality standards and ensure effective risk management. To provide technical support services to directors and staff as well as external clients. Ensuring that support is provided in time and within expected time limits, through effective and efficient people and other resources management.

Budget Highlights for 2021/22

The Minister of Finance delivered his budget speech on 24 February 2021. Due to Covid pandemic, tax relief were provided mainly for individual tax to assist in the recovery of the economy. The individual tax brackets were increased with the lowest tax rate of 18% applicable to income of R216 200 and the maximum marginal rate at 45% applicable to income above R1 656 601.View PDF

Auditor’s responsibility on JSE Listing Requirement 3.84(k) – CEO / CFO sign-off on internal financial control

The JSE Listing Requirement 3.84(k) requires the Chief Executive Officer (CEO) and the financial director (FD) to sign a responsibility statement that they have implemented the necessary internal financial controls to ensure the financial statements are fairly presented and no facts have been omitted or untrue statements made. The auditor has a responsibility to conclude whether this statement is inconsistent with the financial statements or with the auditor’s knowledge obtained during the audit.View PDF

SHARE CATEGORIES – Equity or Liability?

When buying equity shares in a company, one can purchase different category shares, namely ‘ordinary shares’ (also referred to as ‘common stock’) and ‘preference shares’ (also referred to as ‘preferred stock’). Shares represent equity in a company. However, in certain circumstances shares may have to be recognised as a liability in stead of equity. This tip will look at when shares are equity and when it represents a liability.View PDF