The notion of ‘reasonable informed third party’ is a central part of the Code of Conduct for the Audit and Accounting profession. This article will deal in two parts with RITP to create more awareness and a better understanding of this concept What does the term ‘reasonable and informed third party’ (RITP) mean and what…
It is crucial that those given stewardship over fiscal resources be accountable on effective execution of their mandates for government programmes to have a positive impact. Performance auditing is one weapon that can achieve this Finance Minister Pravin Gordhan announced the three-year budget (2016/17 to 2018/19) on 24 February 2016 of which approximately R485 billion…
The biggest issue on the minds of South African directors is that of sustainability, according to a new report on global corporate governance released by Grant Thornton. In the report entitled Boards of the future: steering organisations to thrive, 76% of South African business executives highlighted sustainability as a key area of focus, compared to…
There is no doubt that tax authority activity has been rising steadily in recent times as financially strained governments press for higher revenue collections and media and public attitudes harden against perceived corporate tax avoidance. The audit activity has increased across the board with international tax and transfer pricing in particular leading the way. This…
South Africa’s high-profile banking industry is highly regarded – not only here but throughout the world. A cogent reason for their impressive international standing is the quality of their management. Here’s what lies behind the nature of that quality This question may well be extended into the broader reaches of the economy. Thus: ‘Why are…
After 20 years of debates around insurance accounting, phase II of IFRS 4 will be issued imminently as ‘IFRS 17’. With a likely effective date of 2021, what can we expect? We all know just how much hype there had been around the introduction of IFRS 9, and its far-reaching impact. IFRS 17 is likely…
An alternative for remuneration not subject to employees’ tax The signing of the Tax Administration Laws Amendment Bill 2016 into law on 11 January 2017 extends the ambit of the provisional tax legislation to include remuneration from an employer who is not registered for employees’ tax. In the global mobility space, it is common practice…
It is common practice for a trust to acquire assets on a low or interest-free loan account from a natural person. The reason for capitalising the trust by means of a loan account is due to the fact that a newly set up trust will not have capital funding to acquire assets. The value of…
Donald Trump was Time magazine’s Person of the Year 2016 and Google’s most-searched individual. I definitely don’t want to talk about him but I do want to learn from his victory and how it can impact your and my life, career and business in 2017. Mr Trump’s victory turned the tables for politics worldwide (for…
International Financial Reporting Standard (IFRS) 9, Financial Instruments, becomes effective for periods beginning on or after 1 January 2018. The impairment methodology changes it contains will affect accountants and auditors. After the global financial crisis in 2008, questions were raised on whether the use of the incurred credit loss model for impairment provisioning had contributed…