Understanding how to account for plants, animals, and farm produce is important for businesses in agriculture. IFRS for SMEs Section 34 explains how to record and report biological assets like crops and livestock and harvested products like milk or fruit. This article breaks down the key rules in simple terms, helping businesses stay compliant and manage their finances better.

The statement of financial position shows what a business owns, what it owes, and what is left for the owners. It helps businesses understand their financial health at a specific point in time. Section 4 of the IFRS for SMEs explains how to present this information clearly. By following these guidelines, businesses can organise their assets, liabilities, and equity in a way that makes sense. This ensures financial reports are accurate and useful for decision-making

Financial statements must be clear, accurate, and follow IFRS for SMEs. They should reflect the true financial position of a business and include key reports like the balance sheet, income statement, and cash flow statement. Consistency, transparency, and proper labeling help ensure reliability for investors and stakeholders.

The Companies Act of South Africa outlines specific requirements for financial reporting, determining when a company must be audited, undergo an independent review, or simply compile financial statements. These requirements are primarily based on a company’s Public Interest Score, its classification, and whether its financials are prepared internally or independently. Public companies, state-owned entities, and large private companies typically require audits, while mid-sized companies may only need an independent review. Small, owner-managed businesses often qualify for a basic financial compilation. Understanding these thresholds helps companies comply with regulatory requirements while ensuring appropriate levels of financial oversight.

The rules around Public Interest Entities (PIEs) are changing, and it’s time for accountants and businesses to take notice. The International Ethics Standards Board for Accountants (IESBA) is updating the definition of PIE and at the same time accounting standards are also aligned, with final changes expected by June 2025. These updates include a broader PIE definition, new firm-level assessments, and a shift from "Listed Entity" to "Publicly Traded Entity (PTE)." The impact could be big, especially for African regulators still developing their accounting frameworks. Now is the time to get involved and ensure these changes work in practice before they become official!

Investment property under IFRS for SMEs refers to land or buildings held for rental income or capital appreciation. The standard outlines how to recognise, measure, and disclose investment property in financial statements. Properties can be measured at fair value if reliably measurable or at cost if not. Mixed-use properties require classification based on usage. Leased properties can be treated as investment property under specific conditions. Proper accounting ensures transparency and accurate financial reporting for SMEs.

Intangible assets are non-monetary assets without physical substance that are identifiable and controlled by an entity. Under IFRS for SMEs, such assets are recognised when they are identifiable, controlled by the entity, and expected to generate future economic benefits. The standard mandates initial measurement at cost and subsequent measurement using the cost model, with amortisation applied to assets with finite useful lives. Impairment testing is required when indicators of impairment exist, ensuring assets are not carried at more than their recoverable amount. Practical examples in R currency illustrate how SMEs can apply these principles in real-world financial reporting.

Annual financial statements help businesses understand their financial health. They show what a company owns, what it owes, how much profit it makes, and where its cash goes. IFRS for SMEs makes these reports simpler for small businesses. Knowing how to read them can help with better decision-making and financial planning. Read the full article to learn more about each statement and why they matter.

Starting a new role as a bookkeeper requires a solid understanding of financial operations, compliance, and efficient bookkeeping practices. This guide provides essential insights into key responsibilities, from understanding the business model and reviewing bookkeeping systems to managing compliance and cash flow. Effective communication with external accountants, mastering reconciliations, and setting clear job responsibilities help ensure accuracy and efficiency. Additionally, staying updated with industry changes and adopting modern accounting tools can enhance performance. By implementing these strategies, bookkeepers can establish themselves as indispensable financial professionals, contributing to the overall success of their organisation.

IFRS for SMEs is a financial reporting framework designed for small and medium-sized businesses. It simplifies accounting rules, reduces paperwork, and lowers compliance costs while still following international standards. Unlike full IFRS, it has fewer disclosures, simpler financial instruments, and an easier approach to leases and goodwill. This makes it a practical choice for private companies that do not need complex financial reporting. Businesses using IFRS for SMEs can benefit from clearer financial statements, lower costs, and easier compliance while maintaining credibility with investors and lenders.

Accounting for leave pay means knowing whether it is a short-term or long-term benefit and whether to use IAS 19 or IAS 37. This article explains, in simple terms, how to classify leave, calculate costs for unused leave days, and record the amounts correctly in financial statements. It also provides examples to help business accountants handle both straightforward leave situations and those with uncertain timing or amounts.

Bookkeeping is the foundation of financial success, transforming raw transactions into actionable insights. By maintaining accurate records, bookkeepers ensure compliance, clarity, and a solid base for accountants to strategize and drive business growth. Master the art of bookkeeping to unlock financial stability and long-term success.

Ever wondered how a single event after the reporting period could reshape the story your financial statements tell? Imagine a fire exposing hidden inventory damage or a last-minute acquisition transforming your company’s future. These moments aren’t just dramatic—they’re crucial to how your financial health is portrayed. Our article looks at the critical difference between adjusting and non-adjusting events, guided by IAS 10 and Section 32 of IFRS for SMEs. With real-world examples and practical insights, we’ll help you navigate these complexities and ensure your financial disclosures are accurate, transparent, and trustworthy.

The going concern principle is a cornerstone of financial reporting, shaping how businesses assess their ability to operate over the next 12 months. This article explores the critical guidance from IFRS and the Companies Act 71 of 2008, practical tools like cash flow analysis and stress testing to measure going concern, and actionable steps when a business faces financial uncertainty. Whether it's transitioning to liquidation accounting or engaging stakeholders, understanding these principles ensures transparency, compliance, and proactive decision-making for long-term viability.

Leases play a pivotal role in SME operations, offering asset access with flexible terms. IFRS for SMEs simplifies lease classification and reporting for lessees and lessors. This article provides a clear framework, practical examples, and disclosure requirements to ensure compliance with ease. Stay ahead in financial reporting by familiarising yourself with IFRS for SMEs.

IFRS 16 revolutionises lease accounting, bringing leases onto the balance sheet and transforming financial transparency. Dive into this article to uncover how businesses now recognise Right-of-Use assets and lease liabilities, the steps to compliance, and the practical implications for financial reporting. Whether you're navigating complexities or streamlining operations, this article equips you with the tools to master IFRS 16 and stay ahead in the world of accounting.

Revenue recognition can often feel complicated, but understanding IFRS 15 is essential for getting it right. This guide breaks down the 5-step model in simple terms, using practical examples to help you support your clients with clarity and confidence. From retail sales to telecom contracts, discover how to ensure accurate, transparent financial reporting.

Workers injured at work or who develop workplace-related illnesses have rights under South African law. This article explains how workers’ compensation works, the steps employees should take after an incident, and what employers need to do to comply. A practical example highlights how these processes apply in real life, making it a valuable resource for CIBA members. Read the full article to stay informed.

Management accounts are a powerful tool for guiding businesses toward better decisions and stronger financial health. This article explores how these reports reveal trends, track performance, and highlight opportunities for growth. Learn how to prepare clear, actionable accounts that help your clients manage cash flow, control costs, and plan strategically for the future

The IT industry is reshaping business at a fast pace, and accountants play a vital role in guiding it. From POPIA compliance to managing tricky VAT on digital services, this article looks at the key challenges IT companies face—and how you can help them thrive. Read for practical tips to add value in one of South Africa’s fastest-growing sectors!