South Africa

Financial Reporting Framework in South Africa

The Financial Reporting Standards Council (FRSC) was formed in late 2011 and is the legally constituted standard-setter for South Africa.  Previously, the Accounting Practices Board, a private sector body consisting of a number of accounting and industry bodies, was empowered to issue accounting standards for use by South African companies.

The APB approved IFRS, without change, and approved the use of IFRS for SMEs where companies fall within the scope of that standard. It also issued interpretations that contain issues that are specific to the South African market generally only after discussion with the IASB confirming that it will not be addressing the issue as it is a country specific issue.

During its existence, the Accounting Practices Board issued a preface and four Interpretations being:

  • 501 Accounting for "Secondary Tax on Companies (STC)"
  • 502 Substantively Enacted Tax Rates and Tax Laws
  • 503 Accounting for Black Economic Empowerment (BEE) Transactions
  • 504 IAS 19(AC 116) The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction in The South African Pension Fund Environment.

Under regulations made under South African law promulgated in 2011, entities in South Africa are permitted to use either International Financial Reporting Standards (IFRS), the IFRS for SMEs, or South African Statements of Generally Accepted Accounting Practice (SA GAAP), depending on an entity's 'public interest score'.  The APB adopted IFRS standards as SA GAAP without amendment up until May 2011.

In March 2012 a number of decisions were made:

  • SA GAAP will be withdrawn and cease to apply in respect of financial years commencing on or after 1 December 2012
  • The FRSC will seek to obtain power to issue financial reporting pronouncements (FRPs) to take account of local South African circumstances or issues not specifically covered by IFRS or IFRS for SMEs, provided FRPs are not in conflict with IFRS or IFRS for SMEs
  • The APB will commence the process of its voluntary winding up.

 

Related news

  • South Africa standard-setting arrangements change, 'SA GAAP' to be discontinued

  • Mar 21, 2012

  • Standard setting arrangements in South Africa are undergoing change, with the South African Accounting Practices Board (APB) to be wound up and its functions effectively transferred to the recently created Financial Reporting Standards Council (FRSC). As part of the changes, the use of South African Statements of Generally Accepted Accounting Practice (SA GAAP) is to be discontinued.

  • Private sector task force final report to G20

  • Oct 07, 2011

  • The Private Sector Task Force of Regulated Professions and Industries has published a final report, Regulatory Convergence in Financial Professions and Industries, to the deputies of the G20. The report focuses on the private sector's point of view in regards to global regulatory convergence.

  • The Bruce Column – Going for long-term value

  • Sep 20, 2011

  • In a season when every headline seems to be talking about financial disaster there is an inevitable relief inherent in anything which focuses on and enthuses about how to achieve the long-term sustainability of business.

  • Emerging Economies Group established

  • Aug 02, 2011

  • On 26 July 2011, the Emerging Economies Group (EEG) of the International Accounting Standards Board (IASB) was established in Beijing. EEG founding members are all emerging economies from the G20 and Malaysia.

  • Private sector task force interim report to G-20

  • Jul 19, 2011

  • The Private Sector Task Force of Regulated Professions and Industries has published an interim report, Regulatory Convergence in Financial Professions and Industries, to the deputies of the G-20. The report focuses on the private sector's point of view in regards to global regulatory convergence.

  • More than 70 jurisdictions apply ISAs

  • Jul 11, 2011

  • On June 30 2011, Prof. Arnold Schilder, the Chairman of the IAASB, delivered a speech on global progress in the use of the Clarified International Standards on Auditing (ISAs) at the 2011 annual conference on Accounting and Accountability for Regional Economic Growth in Latin America and the Caribbean (referred to as CReCER after its Spanish/Portuguese acronym).

  • G20 finance ministers will watch convergence efforts

  • Apr 16, 2011

  • The G20 Finance Ministers and Central Bank Governors met in Washington DC on 14-15 April 2011. They agreed, among other things, to closely watch the progress of the IASB and FASB's convergence efforts.

  • South Africa adopts IASB's SME proposal as GAAP for SMEs

  • Oct 04, 2007

  • The Accounting Practices Board (APB) of the South African Institute of Chartered Accountants (SAICA) has adopted the IASB's proposed International Financial Reporting Standard for SMEs as a final Statement of Generally Accepted Accounting Practice (GAAP) for Small and Medium-sized Entities (SMEs).

  • Update on use of IFRSs in South Africa

  • Jan 15, 2007

  • During 2003, the local standard setting body made a decision to issue the text of IFRSs in South Africa as South African Statements of Generally Accepted Accounting Practice (SA GAAP).

  • South African Institute gives members IFRS on-line

  • Jul 25, 2003

  • The South African Institute of Chartered Accountants (SAICA) has given its members access to the International Financial Reporting Standards, Interpretations of International Financial Reporting Standards, and other IASB pronouncements.

  • All listed companies in South Africa must follow IFRSs

  • May 20, 2003

  • The JSE Securities Exchange South Africa (JSE) has approved substantial amendments to its listing rules that will require all companies listed on the exchange to comply with International Financial Reporting Standards (IFRS) for years commencing on or after 1 January 2005.

  • South African Institute of Chartered Accountnts' Submission to the Ministerial Review Panel

  • Apr 04, 2003

  • On 5 December 2002 the Minister of Finance established a panel to review the Draft Accountancy Profession Bill. The general objective of the Panel is to promote the continued integrity of financial markets through the effective regulation of auditors and accountants and the Panel is to make recommendations to the Minister by the end of July 2003.

  • SAICA and JSE Work Together to Ensure Accounting Compliance

  • Jan 10, 2003

  • The South African Institute of Chartered Accountants (SAICA) and the JSE Securities Exchange South Africa (JSE) have established a panel of specialists to ensure that listed companies comply with South African Statements of Generally Accepted Accounting Practice (GAAP). GAAP accords with International Financial Reporting Standards (IFRS).

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