Sustainability website It is indeed true that with time comes maturity. For instance, take a look at financial reporting by companies. It started out as simple book-keeping and has progressed to financial accounting using globally accepted standards that enable users to comfortably compare one company to another. Sustainability reporting was the next big move, with…
The emerging economies are set to grow much faster than the G7 countries (France, Germany, Italy, Japan, the UK, the US and Canada) over the next four decades, according to a report released by PwC. Figures for average growth in GDP in terms of purchasing power parity (PPP) show Nigeria leading the way over the…
The world’s fastest growing companies Although the world is going through some tough economic times, there are still companies that post astonishing growth. Fortune magazine has published its list of the fastest growing companies in the world. We take a look at the top 20 companies’ profit growth.
I find the logic in some of the valuations I get to see in practice staggering. The value of an entity or business is what you can get out of it. You cannot take revenue of a business and leave the costs of generating the revenue in the business. You cannot take earnings out of…
Business rationalisation, realignment, recovery, rescues… the intention is the same, but the degree of intensity and urgency may change. This article discusses the situation where a company has been given a lifeline of an approved Business Rescue Plan but has to balance the need for speed by having to engage in negotiation for reducing employment.…
Africa Fraud Barometer KPMG has released the findings of the second Africa Fraud Barometer. This initiative was launched in 2012 and is an early stage effort to measure fraud on the African continent and expose the risk of fraud to companies in their day-to-day operations. According to the tool, reported cases of fraud decreased from…
Sustainability CFOs are coming to the table A recent study by Deloitte on sustainability shows that corporate Chief Financial Officers (CFOs) are engaging with sustainability1 in increasing numbers. This study surveyed CFOs from companies each generating at least US$1 billion in revenue, drawn from across 14 countries on five continents. It paints a clear picture…
Inconsistent shareholder spread – Disclosures The JSE’s current Listing Requirements contain ambiguities that lead to inconsistent disclosures on public and non-public shareholders. Listed companies need to disclose a shareholder spread in their annual report in terms of section 8.63(d) of the JSE’s Listings Requirements. The shareholder spread deals with the number and percentage shareholding by…
Charles Hattingh The Reality Behind Price Earnings Ratios (PERs) Financial commentators are often hopelessly misinformed when discussing PERs, particularly in the light of Gordon’s Growth Model. Commentators on local radio and television stations seem to believe that shares of companies are only fairly valued if their PERs are in the vicinity of 10. The sort…
If you were to ask me what I view as SAICA’s prime priority, I’d identify it as the maintenance of the highest standards. Virtually all our activities are directed towards this end; it is, indeed, our “raison d’être”. During the course of striving to meet this mandate, we regularly conduct reality checks; something akin to…