Issue of SA GAAP for SMEs
The South African Statement of Generally Accepted Accounting Practice (GAAP) for Small and Medium-sized Entities (SMEs) [the Statement], was issued today. To view the statement please click here.
The Accounting Practices Board (APB) approved the issue of the Statement in response to market needs and differential reporting allowed by the Corporate Laws Amendment Act, 2006 (CLAA).
The Statement may be used by companies defined as 'limited interest' in the CLAA and other entities with no public accountability. These companies and entities will now have a choice of reporting in terms of the Statement of GAAP for SMEs or in terms of full Statements of GAAP or IFRS.
A company that will qualify as a 'limited interest company' in terms of the CLAA may apply the Statement even though the CLAA has not been given an effective date, (assuming the scope requirements in Section 1 of the Statement are met) and still be in compliance with the Companies Act, 1973. The reason being that the Statement forms part of 'Statements of GAAP as approved by the APB', as referred to in paragraph 5 of Schedule 4 of the Companies Act, 1973.
The Statement is effective and can be used immediately (see the effective date section of the front cover of the statement for detailed guidance.) To view the effective date section please click here
Circular 9/2007 - Statement of GAAP for SMEs, was also issued to provide more detail in terms of the application of the Statement. To view the circular please click here. The circular addresses the following areas:
- Current and future classifications of companies in the context of the corporate law reform process;
- The scope and effective date of the Statement;
- Financial reporting frameworks for 'limited interest companies';
- Development of the Statement;
- Some areas to be aware of in applying the Statement; and
- Audit reporting considerations.
A document outlining frequently asked questions (FAQs) has been prepared to provide answers to questions that are expected to arise with the application of the Statement. The list of questions was compiled from the comments received at 10 discussion forums held around the country. To view the FAQs document please click here. In the event that this document does not provide an answer to any of your questions, please e-mail your query to standards@saica.co.za, where a prompt response will be provided.
Full day implementation seminars will be available from 19 November 2007. Click here for details.
To view a complete section outlining all the available information on the Statement of GAAP for SMEs, please visit www.saica.co.za and click on the prominent Statement of GAAP for SMEs icon on the main page.