A Public Interest (PI) Score applies to every company and close corporation, and has to be calculated at the end of each financial year in terms of Regulation 26.
What’s the Score?
R26 goes on to say that:
For the purposes of regulations 27 to 30, 43, 127 and 128, every company must calculate its “public interest score” at the end of each financial year, calculated as the sum of the following:
(a) A number of points equal to the average number of employees of the company during the financial year;
(b) One point for every R1 million (or portion thereof) in third party liability of the company, at the financial year end;
(c) One point for every R1 million (or portion thereof) in turnover during the financial year; and
(d) One point for every individual who, at the end of the financial year, is known by the company:
(i) In the case of a profit company, to directly or indirectly have a beneficial interest in any of the company’s issued securities; or
(ii) In the case of a non-profit company, to be a member of the company, or a member of an association that is a member of the company.
“Practitioners often overlook that the PI Score applies only to a company’s core, or primary activity,” says Dr John Hendrikse, co-founder of Online MOI. “Including ancillary activities in the calculation may result in an incorrect score, which in turn may lead to unnecessary costs for your client.
“A PI Score may be used to determine whether a company needs an audit or independent review, and which financial reporting standards apply. Why not give our PI Score Calculator a try?”