Second Comprehensive Review of the IFRS for SMEs Accounting Standard The International Accounting Standards Board (IASB) maintains the IFRS for SMEs Accounting Standard through periodic reviews. In September 2022, the IASB published the Exposure Draft Third Edition of the IFRS for SMEs Accounting Standard as part of its second comprehensive review of the standard. The outcome of this second review will improve information provided to users of SME financial statements, while maintaining the simplicity of the standard for SMEs. The IASB met on 22 July 2024 to deliberate the proposals in the Exposure Draft Third Edition of the IFRS for SMEs Accounting Standard [...]

Companies Act Amendments Signed into Law The President has signed into law amendments to the Companies Act of 2008 that facilitate doing business, and impose greater corporate transparency on the earnings gap between the highest and lowest paid employees in a company. Amendments include the preparation and presentation of a remuneration report by all public and state-owned companies, the inclusion of a social and ethics committee report, and a decrease in auditor rotation. The Companies Amendment Act streamlines company law to be clear, user-friendly and less burdensome on conducting business. This reform is important for the efficient and effective [...]

Finalised Disciplinary and Investigation Matters In the latest issue of IRBA News, Issue 66, two finalised disciplinary matters and 23 finalised investigation matters were reported. In one disciplinary matter, no audit procedures were performed on the group financial statements’ consolidation process and related risks; considerations relating to the presentation of the financial statements and compliance with the financial reporting framework were not documented; documented evidence of the engagement quality reviewer’s involvement in matters requiring significant audit attention was not present; the existence of underlying assets used for testing were not verified; and the audit file was not archived on [...]

IASB Issues Annual Improvements to IFRS Accounting Standards The International Accounting Standards Board (IASB) has issued narrow amendments to IFRS Accounting Standards and accompanying guidance as part of its regular maintenance of the standards. These amendments, published in a single document, Annual Improvements to IFRS Accounting Standards—Volume 11, include clarifications, simplifications, corrections and changes aimed at improving the consistency of several IFRS Accounting Standards. The amended standards are: IFRS 1 First-time Adoption of International Financial Reporting Standards IFRS 7 Financial Instruments: Disclosures and its Accompanying Guidance on Implementing IFRS 7 IFRS 9 Financial Instruments IFRS 10 Consolidated Financial Statements [...]

IRBA Inspections tip-offs hotline One of the new initiatives the IRBA has implemented in the 9th inspections cycle is a Tip-Offs hotline. The information below, taken from the IRBA’s 9th Inspections Cycle Information Handbook, explains the process, and is available on: https://www.irba.co.za/guidance-for-ras/inspections/tip-offs This new initiative is already operational, with a dedicated email address for the submission of tip-offs via the IRBA website. Tip-offs may be provided either anonymously, or with one’s personal or contact details. The primary benefit of this process – presently existing in certain international jurisdictions – will be the enhanced proactive benefits of the risk-based inspections [...]

IFAC Resources & Support for SMPs There are numerous resources available for small and medium-sized practices (SMPs), many of which are available in multiple languages. Practice transformation Resources on practice transformation include articles, research and publications, press releases and links to external content, for example, the Small Business Sustainability Checklist, Small Business Continuity Checklist, and Guide to Practice Management for SMPs. These resources are available on: https://www.ifac.org/knowledge-gateway/small-and-medium-sized-practices-smps International standards implementation support Ethics (International Ethics Standards Board for Accountants [IESBA]) International standards implementation support resources on ethics, include various publications such as Exploring the IESBA Code, on: [...]

CA2025 Updated to CA of the Future SAICA's CA2025 project (which commenced in 2017) has transformed into the CA of the Future initiative, aiming to equip Chartered Accountants with the skills to thrive as future leaders. This project entailed a major revamp of the CA(SA) entry-level Competency Framework, a blueprint outlining the essential competencies expected of entry-level and prospective CAs(SA). This revised competency framework is being implemented across various aspects of the qualification process, with changes in the academic programmes having started in 2021, and the adoption of this framework in 2022. A key change is the renaming of [...]

Now Available from the IAASB: New ISA for LCE Guidance on Auditor Reporting The International Auditing and Assurance Standards Board (IAASB) has released new supplemental guidance on auditor reporting as it relates to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE. Meant to be read with the ISA for LCE, the new guidance provides assistance to auditors about modifications to the auditor’s report when using the standard. The guidance also includes information on using emphasis of matter and other matter paragraphs, reporting on other information, and reporting [...]

New Report from IFAC, ICAEW, and Basel Institute on Governance The International Federation of Accountants (IFAC), the Institute of Chartered Accountants in England and Wales (ICAEW), and the Basel Institute on Governance have published a new, joint report, Integrated Mindset in Practice: Professional Accountants in Business and Anti-Corruption Compliance, available at: Click here It urges accountants in business to continue to lead anti-corruption actions, and offers practical guidance and actionable strategies to approach anti-corruption initiatives with an integrated mindset, and apply them, resulting in long-term value creation. The approach of an ‘integrated mindset’ encourages company leadership to view financial [...]

IFAC Convenes and Leads Global Discussion on Sustainability Assurance As part of its ongoing initiative to convene, inform and mobilise sustainability reporting and assurance stakeholders, IFAC has released Sustainability Assurance: What to Expect, which may be downloaded for free at: https://www.ifac.org/knowledge-gateway/discussion/what-expect-sustainability-assurance?utm_source=Main+List+New&utm_campaign=43d84903b4-IFAC-release-sustainability-assurance-6.25.24&utm_medium=email&utm_term=0_-43d84903b4-%5BLIST_EMAIL_ID%5D Policymakers and regulators around the world are moving rapidly to introduce essential requirements for sustainability reporting and assurance. IFAC encourages accountants to embrace their pivotal role in this transformation, keeping in mind that the application of reporting and assurance requirements will take time to mature. IFAC has been an early advocate for a harmonised, global system for the [...]