We compile annual financial statements based on IFRS for SME's. We issue the compilation report in our capacity as Chartered Accountants (SA), CA(SA), SAICA member.
Your company or close corporation may choose the cheaper IFRS for SME's instead of the full IFRS annual financial statements if it meets all the following requirements:
1. Entities not listed on an exchange.
2. Entities that do not have public accountability. An entity has public accountability if:
2.1 its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or
2.2 it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. This is typically the case for banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks.
Your company or close corporation does not need an audit or independent review if it meets all the following requirements:
1. Owner managed entities where every person who is a holder of, or has a beneficial interest in, any securities issued by that entity is also a director of the company or member of the corporation.
2. Entities not listed on an exchange.
3. Entities that do not have public accountability.
4. Entities that in the ordinary course of its primary activities (not incidental thereto) do not hold assets (the aggregate value of such assets held at any time during the financial year exceeds R 5 million) in a fiduciary capacity for third parties who are not related to the entities. Fiduciary capacity implies decision-making capability over the application of the assets and that the third parties have the right to reclaim the assets.
5. Entities that have a public interest score (PIS) less than 350 for the particular financial year.
The PIS is calculated as the sum of the following:
(a) a number of points equal to the average number of employees of the entity during the financial year;
(b) one point for every R 1 million (or portion thereof) in third-party liabilities of the entity at the financial year end;
(c) one point for every R 1 million (or portion thereof) in turnover of the entity during the financial year; and
(d) one point for every individual who, at the end of the financial year, is known by the entity to directly or indirectly have a beneficial interest in the entity.
Your company or close corporation may prepare annual financial statements on any basis determined by the directors or members and acceptable to SARS if the PIS is less than 100. It is then not necessary to comply with IFRS for SME's but we suggest you only follow this route if either the company is owner managed and thus exempted from the review requirement (You could encounter problems in obtaining a clean independent review report unless fair presentation are achieved) or the entity is a close corporation (Close corporations are never reviewed).
We prepare basic historical cost based annual financial statements for these mentioned small entities and you are welcome to contact us in this regard.
Your company or close corporation may choose the cheaper IFRS for SME's instead of the full IFRS annual financial statements if it meets all the following requirements:
1. Entities not listed on an exchange.
2. Entities that do not have public accountability. An entity has public accountability if:
2.1 its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or
2.2 it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. This is typically the case for banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks.
Your company or close corporation does not need an audit or independent review if it meets all the following requirements:
1. Owner managed entities where every person who is a holder of, or has a beneficial interest in, any securities issued by that entity is also a director of the company or member of the corporation.
2. Entities not listed on an exchange.
3. Entities that do not have public accountability.
4. Entities that in the ordinary course of its primary activities (not incidental thereto) do not hold assets (the aggregate value of such assets held at any time during the financial year exceeds R 5 million) in a fiduciary capacity for third parties who are not related to the entities. Fiduciary capacity implies decision-making capability over the application of the assets and that the third parties have the right to reclaim the assets.
5. Entities that have a public interest score (PIS) less than 350 for the particular financial year.
The PIS is calculated as the sum of the following:
(a) a number of points equal to the average number of employees of the entity during the financial year;
(b) one point for every R 1 million (or portion thereof) in third-party liabilities of the entity at the financial year end;
(c) one point for every R 1 million (or portion thereof) in turnover of the entity during the financial year; and
(d) one point for every individual who, at the end of the financial year, is known by the entity to directly or indirectly have a beneficial interest in the entity.
Your company or close corporation may prepare annual financial statements on any basis determined by the directors or members and acceptable to SARS if the PIS is less than 100. It is then not necessary to comply with IFRS for SME's but we suggest you only follow this route if either the company is owner managed and thus exempted from the review requirement (You could encounter problems in obtaining a clean independent review report unless fair presentation are achieved) or the entity is a close corporation (Close corporations are never reviewed).
We prepare basic historical cost based annual financial statements for these mentioned small entities and you are welcome to contact us in this regard.