Accounting and Financial statements fun facts

2020-04-01 - Blockchain, AI, and Accounting - A game-changer in accounting?
Blockchain technology, although most well-known for cryptocurrencies such as Bitcoin, is forecasted to have wide-ranging implications for how data is secured, transmitted, and protected. In addition, the rise of artificial intelligence (AI), and the commercialization of its potential, is already reshaping the work accountants do, the role we play, and what the future holds. Check more here

2020-03-10 - Mark Graham explains what Integrating reporting is all about
Check it here

2020-03-31 - Integrated reporting - South Africa leading the way
"South Africa is the undisputed world leader in IR and we're likely to retain our leadership in the years ahead. " Check more here

2020-02-17 - Tired of financial statements that do not make any sense? Struggling to see whether a company is doing good or bad?
The South African Institute of Chartered Accountants (SAICA) together with a few other NGO's started the Integrated Reporting Committee of South Africa (ICR).

Integrated Reporting enhances the way organizations think, plan and report the story of their business. Organizations use Integrated Reporting to communicate a clear, concise, integrated story that explains how all of their resources create value. Integrated Reporting helps businesses to think holistically about their strategy and plans, make informed decisions and manage key risks to build investor and stakeholder confidence and improve future performance. In simple terms, it explains the financial information in a simple way with the objective that anyone can understand it.

2020-01-06 - Why global accounting standards?
Modern economies rely on cross-border transactions and the free flow of international capital. More than a third of all financial transactions occur across borders, and that number is expected to grow. Investors seek diversification and investment opportunities across the world, while companies raise capital, undertake transactions or have international operations and subsidiaries in multiple countries. In the past, such cross-border activities were complicated by different countries maintaining their own sets of national accounting standards. This patchwork of accounting requirements often added cost, complexity and ultimately risk both to companies preparing financial statements and investors and others using those financial statements to make economic decisions. Read more here

2020-12-16 - IFRS - the global accounting framework
Did you know that South Africa is one of 149 countries around the world that adopted these financial reporting standards. IFRS (International Financial Reporting Standards) have to be applied by listed companies in South Africa, as this is a requirement by the JSE and the Companies Act. Unlisted companies can apply IFRS or IFRS for SME's depending on unique requirements.

2020-01-06 - Benefits of IFRS Standards
IFRS Standards address challenges by providing a high quality, internationally recognized set of accounting standards that bring transparency, accountability, and efficiency to financial markets around the world. Read more here

2020-11-25 - Accounting standards - What does that even mean?
An accounting standard is a guideline for financial accounting, such as how an entity prepares and presents its income, expenses, assets, and liabilities. In South Africa, we are guided by IFRS (International Financial Reporting Standards). It consists of 58 books giving accountants guidance. A typical example of when you will need some of these books for guidance is if your company bought Bitcoins. You will need guidance on whether the Bitcoins should be disclosed as "Cash and Cash equivalents", "Investment Property", "Intangible assets" or any of the other categories.

Audit fun facts

2020-07-28 - What are the different audit opinions which my company can get

2020-08-18 - Will External Audits Vanish in the Blockchain World?
No! At least not in the immediate future. But like many of the disruptive transformations taking shape around us with everything going digital, external audits cannot stand insulated. Read more here

2020-07-07 - What is the difference between an independent review and a regulatory audit
Time taken to finish with an independent review is much less than that of an audit. A review does not require the registered auditor to seek supporting independent evidence or to evaluate the internal controls of a company and therefore it might be cheaper for small businesses. Suppliers may not be happy extending credit to companies without audits, and your credit rating may be affected.

2020-06-16 - How to calculate the Public Interest Score (PIS) of a company or close corporation
Points are calculated as follows:

2020-05-26 - Who can carry out an independent review
In the case of a company whose public interest score for the particular financial year was at least 100, by a registered auditor, or a member in good standing of a professional body that has been accredited in terms of section 33 of the Auditing Professions Act (SAICA is the only body so accredited at the moment). The effect of this Regulation is that only registered auditors and CA's may perform an independent review of companies with a public interest score of more than 100.

2020-05-05 - Which companies should be independently reviewed?
All companies that are not required to have audited financial statements must have their financial statements independently reviewed (with the exception of companies where all the shareholders are also directors and therefore are not required to obtain an audit or a review).

2020-04-14 - Should my private company be audited (Update 3)
Any private or personal liability company that has its financial statements compiled by an independent party (such as an external accountant) and that has a Public Interest Score (PIS) of 350 or more should be audited.

2020-03-03 - Should my private company be audited (Update 1)
Any private or personal liability company if, in the ordinary course of its primary activities, it holds assets in a fiduciary capacity for persons who are not related to the company, and the aggregate value of such assets held at any time during the financial year exceeds R5 million should be audited.

2020-03-25 - Should my private company be audited (Update 2)
Any private or personal liability company that compiles its financial statements internally (for example, by its financial director or one of the owners) and that has a Public Interest Score (PIS) of 100 or more should be audited.

2020-01-05 - Do other countries also use ISA's
There are over 93 countries worldwide that adopted and use the international standards on auditing to guide them on the audit quality of financial statements.

2020-02-10 - Why did South Africa adopt ISA's
The International Auditing and Assurance Standards Board is an independent standard-setting body that serves the public interest by setting high-quality international standards for auditing, assurance, and other related areas, and by facilitating their adoption and implementation. In doing so, the IAASB enhances the quality and consistency of practice throughout the world and strengthens public confidence in the global auditing and assurance profession.

2020-12-07 - Mandatory Audit Firm Rotation
To enhance audit quality and independence between audit firms and companies, starting from 1 April 2023, companies have to appoint a new audit firm once every 10 years at least. Thereafter, the audit firm will only be eligible for reappointment as the auditor after the expiry of at least five financial years.

2020-12-09 - Audit in Accordance with International Standards on Auditing
Did you know in South Africa chartered accountants/auditors have to conduct an audit in accordance with International Standards on Auditing referred to as the ISA's. There are over 37 of these ISA books which auditors have to comply with. These ISA's are set by the International Auditing and Assurance Standards Board (IAASB).

2020-01-01 - How can there be so many ISA's
The ISA's (International Standards on Auditing), all 37 books, give chartered accountants / registered auditors guidance ranging from the objectives of an independent auditor, quality control for the audit of financial statements, audit documentation, consideration of laws and regulations in the audit of financial statements, audit evidence, audit sampling, going concern tests and much more.

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