Financial Statement Preparation
With finance team’s resources stretched increasingly thin, our Financial Statement Preparation team can reduce the workload of your finance department. We produce quality financial statements using both the International Financial Reporting Standard (IFRS) as well as the International Financial Reporting Standard for Small and Medium-Sized Entities (IFRS for SMEs).
We possess the technical skills and depth of knowledge required to assist in the preparation of timely and high-quality financial statements that are audit ready. Our financial statement templates take seamless input from your system and track adjustments, ensuring timely completion.
By allowing us to prepare your financial statements it allows you time to interpret and analyse the financial information so that you can make important decisions regarding investing, budgeting and the future of your business.
Companies are now required to upload their financial statements to CIPC in an iXBRL format. Don’t get caught by not complying, allow us to provide you with this service.
- Annual statutory accounts
- Half-year review statements
- Consolidated group accounts
- Consolidation spreadsheet preparation
- iXBRL Statutory Accounts
Save time and contact us to prepare your financial statements.
Frequently Asked Questions
When should financial statements be audited, reviewed or compiled?
The Companies Act of South Africa (the Act) requires all companies prepare financial statements within 6 months after the end of its financial year. A very popular question among business owners with regards to financial statements is whether the statements should be independently audited, reviewed or compiled. In determining the engagement type, the Act prescribes the following criteria to be applied:
Audited financial statements
- Any profit or non-profit company that, in the ordinary course of its primary activities, holds assets in a fiduciary capacity for persons who are not related to the company, and the aggregate value of such assets held at any time during the financial year exceeds R5 million;
- Any non-profit company, if it was incorporated:
- directly or indirectly by the state, a state-owned company, an international entity or a company; or
- primarily to perform a statutory or regulatory function in terms of any legislation, a state-owned company, an international entity, or a foreign state entity, or for a purpose ancillary to any such function;
- Any other company whose public interest score in that financial year is:
- 350 or more; or
- at least 100, but less than 350, if its annual financial statements for that year were internally compiled.
How to calculate your public interest score, to determine if you exceed 350 points or not:
- a number of points equal to the average number of employees of the company during the financial year;
- one point for every R1 million (or portion thereof) in third-party liabilities of the company, at the financial year end;
- one point for every R1 million (or portion thereof) in turnover during the financial year; and
- one point for every individual who, at the end of the financial year, is a member of the company, or a member of an association that is a member of the company.
Independent review of financial statements
The Act prescribes that an independent review of a company’s annual financial statements must be performed if the following apply and the company does not select to be voluntarily audited:
If, with respect to a company, every person who is a holder of, or has a beneficial interest in, any securities issued by that company is not a director of the company, that financial statements should be independently reviewed.
A company and its directors may choose to be voluntarily audited or reviewed if they wish to engage in an assurance engagement, although it has not been prescribed by the Act.
Compiled financial statements:
If none of the above-mentioned requirements has been met, the financial statements may be compiled.
With compilations, or compiled financial statements, the outside accountant converts the data provided by the client into financial statements without providing any assurances or auditing services.
What is iXBRl and how does it affect my business?
From July 2018 the Companies and Intellectual Property Commission are going to require that all entities in conjunction with the submission of their annual returns submit their financial statements in a format known as iXBRL. iXBRL is a computer readable format that allows CIPC to obtain certain crucial information from the financial statements.
What are financial statements?
Financial statements are a structured representation of historical financial information, including related notes, intended to communicate an entity’s economic resources or obligations at a point in time in accordance with a financial reporting framework. The related notes ordinarily comprise a summary of significant accounting policies and other explanatory information.
Why does a company need financial statements?
Financial statements are a very important document for any business. They are not only required so that management and owners understand the operational results of the business they are needed by law by the South African Receiver of Revenue. In terms of the new CIPC requirements you will be required to submit your financial statements to them on an annual basis as well.
Why do I need a third party for preparing financial statements?
In terms of Section 90 of the Companies Act audit firms are not allowed to provide certain other services to their clients, one of these such services is preparing financial statements.
A company however can internally prepare their own financial statements; however, it often works out to be more cost effective for an entity to outsource this function as the preparation of financial statements in excel or word is time consuming, or if a programme is used a specific skill set must be had in order to be able to use the software.