Basic Conditions of Employment Act, 1997
R 385
Companies Act, 1973 (Act No. 61 of 1973)Schedule 4: Requirements for financial statements |
Preliminary
| 1) | [Deleted by the Corporate Laws Amendment Act No. 24 of 2006]. |
| 2) | This Schedule has effect in addition to the requirements of the Act in respect of financial statements. |
| 3) | A company may, in addition to matters expressly permitted by this Schedule give any information required by this Schedule to be stated in a balance sheet or income statement, in the form of a note or annexure thereto if such presentation would be more effective or convenient. |
Interpretation
| 4) | For the purposes of this Schedule, unless the context otherwise indicates- |
| a) | "accounting date" means, in the case of annual financial statements, the date on which the financial year of a company terminates and in the case of interim reports, the date on which the accounting period concerned terminates; |
| b) | "accounting period" means, in the case of annual financial statements, the financial year of the company and in the case of interim reports, the period concerned for which a report is required by the Act; |
| c) | an "associated company" is an investee that is neither a subsidiary nor a joint venture of the investor, is held as a long term investment and provides the investor with the ability to exercise significant influence; |
| d) | "contingent right to the allotment of shares" means any option to subscribe for shares and any other rights to the allotment of shares to any person whether arising on the conversion into shares of securities of any other description or otherwise; |
| e) | "convertible instruments" are instruments which may be voluntarily exchanged for shares or debentures during a designated conversion period at a specified exchange ratio; |
| f) | "current taxation" is the amount of income tax payable or recoverable in respect of taxable income or tax loss for the period; |
| g) | "deferred taxation" is the tax payable or recoverable in future periods due to temporary differences; |
| h) | "defined benefit plans" are retirement benefit plans under which amounts to be paid as retirement benefits are determinable, usually by reference to employee's pensionable remuneration or years of service or both; |
| i) | "defined contribution plans" are retirement benefit plans under which amounts to be paid as retirement benefits are determined by contributions to a fund together with investment earnings thereon; |
| j) | "distributable reserve" means any amount which has been transferred to reserves and which may be distributed by way of dividend; and "non-distributable reserve" shall be construed accordingly. |
| k) | "earnings per share" means the earnings attributable to each equity share, based on the consolidated net income for the period, after tax, and after deducting outside shareholders' interest and preference dividends, divided by the weighted average number of that class of share in issue; |
| l) | "effective tax rate" is the taxation charge in the income statement expressed as a percentage of reported income; |
| m) | [deleted by the Corporate Laws Amendment Act No. 24 of 2006] ; |
| n) | "fellow subsidiary" means, in relation to another company, a company which is a subsidiary of the same holding company of which that other company is a subsidiary; |
| o) | "financing activities" are those activities which result in changes in the size and composition of the contributed equity and borrowings of the reporting entity; |
| p) | "group annual financial statements" means the annual financial statements in respect of groups of companies as prescribed by section 289 of the Act; |
| q) | "group of companies or group" means a holding company, not itself being a wholly owned subsidiary, together with all the companies being its subsidiaries; |
| r) | "intangible assets" are identifiable non-monetary assets without physical substance; |
| rA) | "inventories" are assets held for sale in the ordinary course of business, in the process of production for sale or in the form of materials or supplies to be consumed in the production process or in the rendering of services; |
| s) | "investing activities" are those activities relating to the acquisition and disposal of long-term assets and other investments not falling within the definition of cash and cash equivalents; |
| t) | "listed investment" means an investment in regard to which permission has been granted to deal therein on a recognised stock exchange or on any stock exchange of repute outside the Republic; and "unlisted investment" shall be construed accordingly; |
| u) | "market value" is the amount for which an asset could be bought or sold between a knowledgeable, willing buyer and a knowledgeable, willing seller in an arm's length transaction; |
| v) | "material" means anything that is significant in relation to the circumstances applicable to each company; and "materially" shall have a corresponding meaning. |
| vA) | "material item" means any information relating to a company that either by itself or in conjunction with other information, is of such an extent or nature that it could influence the economic decisions of users of the company's financial statements. |
| w) | "provision" means a liability of uncertain timing or amount; |
| x) | "retained equity income or deficit of an associated company" is the investor's effective interest in the retained income or loss (net of dividends received) of the investee for the accounting period before prior year adjustments; |
| y) | "sale and leaseback transaction" involves a company selling its assets to a lessor who, in turn, leases the same assets back to the company, which then becomes a lessee; |
| z) | "standard tax rates" are the rates of tax as determined from time to time by tax legislation, at which companies pay tax on taxable income; |
| (aa) | [deleted by the Corporate Laws Amendment Act No. 24 of 2006]; |
| (bb) | "the Act" means the Companies Act, 1973 (Act No. 61 of 1973); |
| (cc) | "timing differences" are the differences between taxable income and reported income that arise because certain items of income and expense are included in taxable income in periods different from those in which they are included in reported income. |
Application
4A)
| a) | Limited interest companies must comply with the whole of this Schedule. |
| b) | To the extent that there is no conflicting requirement in financial reporting standards, public interest companies must comply with Part III and with paragraphs 8-10, 14, 17, 23, 25-28, 30-33, 36-37, 40-42, 45, 56-60 and 73 of this Schedule. |
