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Companies Act, 2008 (Act No. 71 of 2008)

Companies Regulations, 2011

Chapter 2 : Formation, Administration and Dissolution of Companies

Part C : Transparency, accountability and integrity of companies

27. Financial Reporting Standards

 

 

See section 29(4)

 

(1) A company’s financial statements may be compiled internally or independently.

 

(2) For all purposes of this regulation and regulations 28 and 29, a company’s financial statements must be regarded as having been compiled internally, unless they have been "independently compiled and reported", as defined in regulation 26 (1)(e).

 

(3) Nothing in this regulation precludes a company—
(a) that is required to prepare its financial statements to the standards of IFRS for SMEs, from preparing its financial statements to the standards of IFRS instead; or
(b) that is not subject to any prescribed standards, from preparing its financial statements to the standards of either IFRS or IFRS for SMEs or SA GAAP.

 

(4) For any particular company, any financial statements contemplated in section 28 or 29 must comply with the applicable standards for that category of company as follows:

 

State owned and Profit companies

 

Category of Companies

Financial Reporting Standard

State owned companies.

IFRS, but in the case of any conflict with any requirements in terms of the Public Finance Management Act, the latter prevails.

Public companies listed on an exchange.

IFRS

Public companies not listed on an exchange.

One of—

(a)    IFRS; or

(b)    IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME’s.

Profit companies, other than state-owned or public companies, whose public interest score for the particular financial year is at least 350.

One of—

(a)    IFRS; or

(b)   IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME’s

Profit companies, other than state-owned or public companies—

(a)   whose public interest score for the particular financial year is at least 100 but less than 350; or

(b) whose public interest score for the particular financial year is less than 100, and whose statements are independently compiled.

One of—

(a)    IFRS; or

(b)   IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME’s; or

(c)    SA GAAP.

Profit companies, other than state-owned or public companies, whose public interest score for the particular financial year is less than 100, and whose statements are internally compiled.

The Financial Reporting Standard as determined by the company for as long as no Financial Reporting Standard is prescribed.

 

Non-Profit Companies

 

Category of Companies

Financial Reporting Standard

Non profit companies that are required in terms of regulation 28 (2)(b) to have their annual financial statements audited.

IFRS, but in the case of any conflict with any requirements in terms of the Public Finance Management Act, the latter prevails.

Non profit companies, other than those contemplated in the first row above, whose public interest score for the particular financial year is at least 350.

One of—

(a)    IFRS; or

(b)    IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME’s.

Non-profit companies, other than those contemplated in the first row above-

(a)   whose public interest score for the particular financial year is at least 100, but less than 350; or

(b)   whose public interest score for the particular financial year is less than 100, and whose financial statements are independently compiled.

One of—

(a)    IFRS; or

(b)    IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME’s; or

(c)    SA GAAP.

Non-profit companies, other than those contemplated in the first row above, whose public interest score for the particular financial year is less than 100, and whose financial statements are internally compiled.

The Financial Reporting Standard as determined by the company for as long as no Financial Reporting Standard is prescribed.

 

(5) The Financial Reporting Standards prescribed by this regulation apply to every company with a financial year end starting on or after the effective date of the Act.