News
December – 2011
Posted by: admin | Posted on: December 13th, 2011 | 0 Comments
Every year we say the same thing – “the year has just flown by” – this year is no exception.
At this time last year we communicated on the global economic crisis and felt that any recovery progress would be slow and erratic – how true this has turned out to be.
As we speak the Euro Zone woes have worsened – it appears that nobody has a clear vision as to the way forward. Add to this mix that America and the UK are still in severe difficulty plus all the political turmoil in Egypt, Syria et al and you get a very uncertain and volatile scenario.
To try and predict the direction of economies, share markets and currencies is all but impossible, so let’s all have an enjoyable, peaceful and restful festive season and hope and pray that 2012 will deliver a far better outcome in all areas discussed above.
As the implications of the new companies act which became effective from 1 May 2011 are not fully understood by many people, we felt it appropriate to comment thereon in this issue and also to discuss the reporting standards that will now apply in the preparation of annual financial statements.
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THE NEW COMPANIES ACT
Posted by: admin | Posted on: December 13th, 2011 | 0 Comments
The New Companies Act became effective on 1 May 2011. Although this act does not repeal the Close Corporations Act it does make changes to the way in which Close Corporations are required to prepare their financial statements and have them reported on. These changes enforce the same reporting requirements as those for companies.
Before we can discuss the reporting requirements under this new act we need to understand the concept of the Public Interest Score. Every company and Close Corporation must calculate a public interest score each year and this score will determine, along with the ownership of the entity, its financial reporting framework and whether it requires an audit, a review, an accounting officer’s report or no report at all. Read More