Chapter 2: Formation, Administration and Dissolution of Companies
Part C: Transparency, accountability and integrity of companies
R27: Financial Reporting Standards
- (1) A company's financial statements may be compiled internally or independently.
- (2) For all purposes of this regulation and regulations 28 and 29, a company's financial statements must be regarded as having been compiled internally, unless they have been "independently compiled and reported", as defined in regulation 26(1)(e).
- (3) Nothing in this regulation precludes a company-
- (a) That is required to prepare its financial statements to the standards of IFRS for SMEs, from preparing its financial statements to the standards of IFRS instead; or
- (b) That is not subject to any prescribed standards, from preparing its financial statements to the standards of either IFRS or IFRS for SMEs or SA GAAP.
- (4) For any particular company, any financial statements contemplated in section 28 or 29 must comply with the applicable standards for that category of company as follows:
- (a) State owned companies:
- (i) IFRS, but in the case of any conflict with any requirements in terms of the Public Finance Management Act, the latter prevails.
- (b) Public companies listed on an exchange:
- (i) IFRS.
- (c) Public companies not listed on an exchange:
- (i) One of-
- (aa) IFRS; or
- (bb) IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME's.
- (d) Profit companies, other than state-owned or public companies, whose public interest score for the particular financial year is at least 350.
- (i) One of-
- (aa) IFRS; or
- (bb) IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME's
- (e) Profit companies, other than state-owned or public companies whose public interest score for the particular financial year is at least 100 but less than 350; or whose public interest score for the particular financial year is less than 100, and whose statements are independently compiled:
- (i) One of-
- (aa) IFRS; or
- (bb) FRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME's; or
- (cc) SA GAAP.
- (f) Profit companies, other than state-owned or public companies, whose public interest score for the particular financial year is less than 100, and whose statements are internally compiled:
- (i) The Financial Reporting Standard as determined by the company for as long as no Financial Reporting Standard is prescribed.
- (g) Non profit companies that are required in terms of regulation 28 (2)(b) to have their annual financial statements audited:
- (i) IFRS, but in the case of any conflict with any requirements in terms of the Public Finance Management Act, the latter prevails.
- (h) Non profit companies, other than those contemplated in subregulation (4)(g) whose public interest score for the particular financial year is at least 350:
- (i) One of-
- (aa) IFRS; or
- (bb) IFRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME's.
- (i) Non-profit companies, other than those contemplated in subregulation (4)(g) whose public interest score for the particular financial year is at least 100, but less than 350; or whose public interest score for the particular financial year is less than 100, and whose financial statements are independently compiled:
- (i) One of-
- (aa) IFRS; or
- (bb) FRS for SMEs, provided that the company meets the scoping requirements outlined in the IFRS for SME's; or
- (cc) SA GAAP.
- (j) Non-profit companies, other than those contemplated in subregulation (4)(g) whose public interest score for the particular financial year is less than 100, and whose financial statements are internally compiled:
- (i) The Financial Reporting Standard as determined by the company for as long as no Financial Reporting Standard is prescribed.
- (5) The Financial Reporting Standards prescribed by this regulation apply to every company with a financial year end starting on or after the effective date of the Act.
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Related Regulations
R26: Interpretation of regulations affecting transparency and accountability
R28: Categories of companies required to be audited
R29: Independent review of annual financial statements
Related Sections
Related Notes
No related note.
Related Forms
No related forms.