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

                                              s29: Financial statements

                                              Related Notes

                                              No related note.

                                              Related Forms

                                              No related forms.