The dire state of the financial health of South African municipalities is a well-documented and frequently discussed fact. Over the past number of years, the impact of this on service delivery and municipal infrastructure has become evident. Many municipalities are (arguably) on the verge of collapse. Ultimately, local government is the sphere of government which…
Employee share ownership plans (ESOPs) have become popular in South Africa as a mechanism to drive companies’ Broad-based Black Economic Empowerment (BEE) strategies and to align stakeholder and employee values. Amongst the numerous success factors of this complex area is the accounting for these complex arrangements. Several interacting aspects of International Financial Reporting Standards (IFRS)…
In the arena of private equity there is a strong requirement for reporting and accountability within the companies that have implemented private equity (PE). This is not just due to the fact that PE firms, mostly staffed by CAs, are looking to ensure rigour in the financial aspects of the business – they also monitor…
Accounting ethics has long demanded that accountants not be influenced by bias. But bias isn’t just about racism, sexism, and all those other -isms. Recent revisions to section 120 of the SAICA Code of Professional Conduct make it clear that we need to avoid cognitive biases too – a much bigger challenge, because we are…
The introduction of rules will lead to more ethical and responsible behaviour. Correct? Maybe we should think again about what rules can do, what they cannot do, and if rules are always good. There was a recent incident at Stellenbosch University where the rector was charged with nepotistic behaviour for using his discretionary placement power…
If you want to get the most out of your insurance rewards programme, speak to a chartered accountant. While I, a philosophy graduate, was patting myself on the back in February, proudly slurping my hard-earned Kauai peanut butter bomb, my accounting colleagues had already rocketed to Diamond status, were flying overseas for pennies, and basically…
The majority of organisations in the modern era understand the importance of risk management and hence make some effort to manage it. The obvious dimensions of organisational risk are financial, legal, operational, information technology, human resources, and marketing risks. These are usually acknowledged and frequently managed in a structured manner. Often overlooked, however, is the…
We need to find pragmatic ways of working through our social ills and creating a more desirable society. But how do we do this? Lulama Qabaka of The Ethics Institute has a few suggestions. A man promised his children he would buy them new toys at the end of the month because he knew he…
Despite the robust Code of Professional Conduct within the accountancy profession locally and internationally, the reputation of the accountancy profession has received backlash over the years with a number of corporate failures and accounting scandals. Some more well-known corporate failures locally include Steinhoff where accounting irregularities were identified by the auditors that resulted in the…
Brainstorming is a simple and effective tool in problem-solving. It brings together diverse thinking on a chosen topic with the sole purpose of generating a list of possibilities. No idea is rejected and speed of generating ideas is welcomed without the need to consider its merit or practicality. You can learn the skill to facilitate…