This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.

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:

  • Withdraw SA GAAP, which would 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

  • Deloitte IAAER Scholarship Programme – One year on

  • Apr 04, 2014

  • In February 2013, Deloitte (DTTL) and the International Association for Accounting Education and Research (IAAER) launched the Deloitte IAAER Scholarship Programme aiming at supporting better accounting education and improving the quality of financial reporting and auditing. One year into the programme, the scholars have had the chance to present their work at international conferences, have published papers in high quality journals and have become links between academe, standard-setting and industry.

  • South Africa endorses International <IR> Framework

  • Mar 19, 2014

  • The Integrated Reporting Committee (IRC) of South Africa has endorsed the International Integrated Reporting (<IR>) Framework, issued by International Integrated Reporting Council (IIRC), as guidance on good practice on how to prepare an integrated report.

  • Video of a panel discussion on the future of IFRS in Africa

  • Jul 19, 2013

  • The IASB has posted to its website a video of a panel discussion on the future of financial reporting in Africa which was part of a stakeholder event hosted jointly by the Trustees of the IFRS Foundation and the South African Institute of Chartered Accountants (SAICA).

  • ASAF membership announced

  • Mar 19, 2013

  • The IFRS Foundation has announced the membership of the newly founded Accounting Standards Advisory Forum (ASAF) that is designed to formalise and streamline the relationships between the IFRS Foundation and IASB with the global standard-setting community, in order to bring important regional perspectives to the IASB’s technical work and to offer feedback on the most important issues of the day.

  • Deloitte IAAER Scholarship Programme launched

  • Feb 13, 2013

  • Deloitte (DTTL) and the International Association for Accounting Education and Research (IAAER) today announced the Deloitte IAAER Scholarship Programme, naming five associate professors from Brazil, Indonesia, Poland, Romania and South Africa as the programme’s inaugural scholars.

  • Report from recent IFASS meeting released

  • Jan 17, 2013

  • A report has been issued summarising the discussions at a meeting of the International Forum of Accounting Standard Setters (IFASS, formerly the NSS) held in Zurich on 22-23 October 2012. The meeting covered a broad range of topics, including the future relationships between the IASB and regional and national standard setters, topical issues in financial reporting, reports from regional groups and administrative matters.

  • GRI launches new 'Focal Point' in South Africa

  • Jan 10, 2013

  • The Global Reporting Initiative (GRI) has opened a new 'Focal Point' in South Africa, which is designed to act as a regional hub with the main aim of facilitating and promoting the active engagement of African organisations in the development of sustainability reporting regionally and globally.

  • Emerging Economies Group meeting focuses on common control transactions

  • Dec 17, 2012

  • The IASB has publicly released a communiqué from a meeting of the Emerging Economies Group (EEG) held in Sao Paulo, Brazil on 4-5 December 2012. The main topic discussed at the meeting was transactions under common control, and the meeting also included brief discussions on hybrid financial instruments and impairment of financial assets.

  • ACCA research report discusses effects of integrated reporting

  • Aug 08, 2012

  • A report from the Association of Chartered Certified Accountants (ACCA) provides insights into the impact of integrated reporting on companies' corporate reporting, based on an academic study of recent experience in South Africa. The ACCA report contains a number of specific recommendations that could be taken into account by those developing the international integrated reporting framework, under the auspices of the International Integrated Reporting Council (IIRC), or otherwise.

  • Rio+20 'encourages' sustainability reporting

  • Jun 24, 2012

  • The outcome document from the United Nations Conference on Sustainable Development (Rio+20) held on 20-22 June 2012 has acknowledged the importance of sustainability reporting. Paragraph 47 of the document 'encourages' companies to integrate sustainability information into their reporting cycle. The development has been championed by the governments of Brazil, Denmark, France and South Africa, which are forming a group of ‘friends of paragraph 47’ to advance corporate sustainability reporting.

  • Report from recent IFASS meeting released

  • Jun 04, 2012

  • The International Forum of Accounting Standards Setters (IFASS) met in Kuala Lumpur on 29-30 March 2012. A detailed report of proceedings at the meeting has now been released, outlining discussions on numerous topics such as the relationship between standard setters and the IASB, the IASB's work programme and processes, and a report on the possible adoption of IFRS in the United States noting a possible "step back".

  • 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.