Retention of Records

Entities are required to retain and protect important documents (hardcopies, online or other media) for a certain number of years before it being eligible for destruction. As of 1 July 2020, the effects of the Protection of Personal Information Act (POPIA) should also have been taken into consideration. SAICA issued an updated Guide on the retention of records during May 2021 View PDF

IAS 8 AMENDMENT New definition for Accounting Estimates

The IASB recently amended IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to include a definition for accounting estimates. The amendments are effective for annual periods beginning on or after 1 January 2023.
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New Amendments effective 1 January 2022

New Amendments with regards to Annual Improvements to IFRS 2018 – 2020 Cycle, IAS 16 Property, plant and equipment (Proceeds before intended use), and IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Onerous Contracts – Costs of fulfilling a contract) will come into effect 1 January 2022.View PDF

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

Public Sector: Treatment of fully depreciated asset still in use (GRAP 17)

The Accounting Standards Board has during their March 2021 FAQ raised the issue surrounding fully depreciated assets still in use beyond their accounting useful life. The disclosure requirements of GRAP 3 must be applied irrespective whether the adjustment should be treated as a change in accounting estimate or an error.View PDF

The Protection of Personal Information Act (Popia) – Compliance

The South African Constitution gives every person the right to privacy, and the right to safeguarding of personal information. The Protection of Personal Information Act (POPIA) gives effect to this right. Here is what you need to know!View PDF

IFRS 3 Business Combinations – New definition of Business

The South African Constitution gives every person the right to privacy, and the right to safeguarding of personal information. The Protection of Personal Information Act (POPIA) gives effect to this right. Here is what you need to know!View PDF

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