Technical Updates

Accounting. Assurance. Law. Ethics. Taxation. Technology

Table of Contents

Accounting and Assurance

The International Sustainability Standards Board’s (ISSB) First two exposure drafts of Sustainability and related Financial and Climate disclosure requirements are available for public consultation and comments until 29 July 2022. 

Notice

Exposure Draft ED/2022/S1 General Requirements for Disclosure of Sustainability-related Financial Information is published by the ISSB for comment only.
Exposure Draft ED/2022/S2 Climate-related Disclosures is published by the ISSB for comment only.

Information and Implications

Professional accountants and finance executives are ideally positioned to play a key advisory role in addressing the reporting requirements, challenges and opportunities relating to sustainability and climate change. These matters affect each business differently, either directly or indirectly. Interested parties are encouraged to review the exposure drafts based on their unique application and express their opinions to minimise any unintended consequences before final pronouncements are made.

Context for the beginner

The ISSB recently unveiled two proposed standards for general sustainability – and specific climate related disclosure requirements.  The new Board tries to set unified rules for entities around the world. Read more here.

Need assistance

Submit your comments by 12 July 2022 to saiba@saiba.org.za. SAIBA will leverage the benefit of the pooling of our members’ resources to submit comments on your behalf to the ISSB.

Unique SAIBA offering

SAIBA prides itself in being at the forefront of new developments and equipping our members with the resources to ensure their success. If you are interested in joining SAIBA’s Accountant’s Climate and Sustainability Summit, please register by using the following link or view the event brochure here.

IFAC Release: New Implementation Tool for auditing accounting estimates.

Notice

The International Federation of Accountants (IFAC) issued a Tool to work in conjunction with the International Auditing and Assurance Standards
Board’s (IAASB) previously published ISA 540 (Revised) Auditing Accounting Estimates and Related Disclosures, and other relevant ISAs.

Information and Implications

Management of all entities, irrespective of type or size, has to make accounting estimates from time to time. These accounting estimates have a certain degree of estimation uncertainty and may also be complex to calculate.

The Implementation Tool assists auditors in the implementation of ISA 540 (Revised) and provides an overview of steps and related matters that auditors should consider when auditing accounting estimates and related disclosure. 

Context for the beginner

Read more here

Need assistance

Email enquiries and questions to technical@saiba.org.za for further assistance.

IFAC issued 8th instalment in the “Anti-Money Laundering, The Basics”- series

Notice

IFAC issued 8th instalment in the” Anti-Money Laundering, The Basics”-series on 28 Mar 2022.

Information and Implications

The series provides professional accountants with a better understanding of how money laundering works, the risks they face and what they can do to mitigate these risks and make a positive contribution to the public interest. The 8th instalment to the series focuses on crime trends.

Context for the beginner

Read more here

Need assistance

Email enquiries and questions to technical@saiba.org.za for further assistance.

Read more regarding recent CIPC Notices published and compliance due

Compliance due 1 Apr 2022 regarding XBRL Mandate extended to Co-operatives as per CIPC Notice 52 of 2021

Co-operatives will be required to file audited financial statements or independent reviewed reports depending on the category from 1 April 2022. Read notice here 

CIPC Practice Note 2 of 2022: Certification requirements for documents filed with the CIPC, applicable from 1 Apr 2022
CIPC has noted an increase in the submission of suspicious and possible fraudulent certified documents to the CIPC and thus, further to Notices 54 and 63 of 2016, hereby advises customers that the CIPC will apply strict verification of such supporting documentation (ID / passport copies) as part of its business processes from 1 April 2022.

Failure to adhere to the certification requirements may result in the CIPC rejecting the application for incompleteness. Read the notice here

CIPC Notice 4 of 2022: Name reservation and approval

CIPC confirms that a for-profit company may be registered without a name (read more here):    

Ethics

International Ethics Standards Board for Accountants (IESBA): Exposure draft published for comment until 20 Jun 2022 with proposed Technology-related enhancements to Global Ethics

Notice
IESBA published an Exposure Draft – “Proposed Technology-related Revisions to the Code” in February 2022 that is open for comment until 20 Jun 2022. Find the exposure draft hereThe IESBA is set to approve the final technology-related revisions to the Code by March 2023.

Information and Implications
Independent reviewers need to consider and assess the impact that bias and mis- and disinformation have on trust as well as objective decision making. The Exposure Draft seeks to enhance the Code’s robustness and expand its relevance in an environment being reshaped by rapid technological advancements. The proposed amendments will guide the ethical mindset and behaviour of professional accountants in business and in public practice as they deal with changes brought by technology and freedom of distribution of unverified information in their work processes and the content of the services they provide

Context for the beginner

Accountants are called to act ethically on all matters, including technology related matters. For further information regarding discussions on ethical leadership in an era of complexity and digital change, read here

Need assistance

Submit your comments by 6 June 2022 to saiba@saiba.org.za. SAIBA will leverage the benefit of the pooling of our members’ resources to submit comments on your behalf to the IESBA.

E-mail enquiries and questions to technical@saiba.org.za for further assistance.

Taxation

Reminder of Employer Reconciliation Declarations due 31 May 2021

Notice

Employers are required to submit their Employer Reconciliation (EMP501) by 31 May 2022

Information and Implications
It is advised to file the EMP501 well in advance, to allow time to resolve queries, should the South African Revenue Service (SARS) reject the EMP501 after the submission date.  The effect of this is that the EMP501 will be deemed to not have been submitted and will be subject to administrative penalties for PAYE (as provided in paragraph 14(6) of the Fourth Schedule to the Income Tax Act).

Context for the beginner

The EMP 501 reconciles:

There are 2 ways of submitting the EMP501 reconciliation:

Need assistance

Should you require assistance with your EMP501 you can find an accountant here 

SARS issued anti-fraud leaflet to raise awareness on how to protect taxpayers eFiling profiles

Notice
On 19 April 2022 SARS issued an anti-fraud leaflet. Find it here.

Information and Implications

Guidance is provided on how to protect taxpayers’ eFiling profiles, for instance:

This is important for the accountant and taxpayer to avoid:

Context for beginners

Fraudulent activities are carried out by individuals who gain access to eFiling profiles through phishing or other nefarious scams to:

An example of a scam email can be found here.

Need assistance

Email enquiries and questions to technical@saiba.org.za for further assistance.

Customs Registration Licensing Document was updated on 19 April 2022

Notice
The Customs External Policy Document regarding registration, licensing and designation effective from 1 October 2021 was updated. Find the guide here.

Information and Implications

The facility codes used in Box 30 on the Customs Clearance Declaration (CCD) have been updated to include the licensing of a new container depot in Cape Town.

Implications if the applicable facility codes listed in SC-CF-19-A02 is not inserted in Box 30 on the CCD :

Context for beginners

Before submitting a Customs Clearance Declaration (CCD), the person applying (importers and exporters and their clearing or registered agents) must be registered or licensed as prescribed in Registration, Licensing and Designation external policy (SC-CF-19).

Need assistance

Should you require assistance with your Customs Clearance Declaration (CCD), submit a query here and SAIBA’s Tax Operational Support will contact you or send an email to taxtech@saiba.org.za.

SARS published the new Preferential Procurement Policy on 23 March 2022

NoticeOn 23 March 2022 a new document, SARS Preferential Procurement Policy, has been published. Find it here

Information and Implications

The policy has been Developed to enable SARS to comply with section 217 (2) and (3) of the Constitution that makes it incumbent on organs of state to apply a system of preferential procurement and to do so in terms of national legislation (BBBE Act).

Context for beginners

The Preferential Procurement Policy Framework Act 5 of 2000 (PPPFA) regulates the procurement policy and framework of organs of state. Its purpose is to enhance the participation of Historically Disadvantaged Individuals (HDIs) and small, medium and micro enterprises (SMMEs) in the public-sector procurement system.

The draft Preferential Procurement Regulations, 2022 supports the PPFA and were published for public comment on 10 March 2022. The purpose of the Draft Regulations is to prescribe the threshold amounts in which the 80/20 and 90/10 preference point systems must be used, together with the formula to be applied.

Read more regarding the rationale for the Draft Preferential Procurement Regulations, 2022 here.

SARS published their Preferential Procurement Policy to:

Need assistance

Should you have any technical queries regarding the SARS Preferential Procurement Policy send an email to taxtech@saiba.org.za.

Law

New Basic Conditions of Employment Act (BCEA) earnings threshold to R 224,080.48 per annum with effect from 1 March 2022

Notice

The Minister of Employment and Labour raised the annual BCEA earnings threshold to R 224,080.48 per annum with effect from 1 March 2022

Information and Implications

In a gazette published on 9 February, Employment and Labour Minister, Thulas Nxesi announced that the new earnings threshold will increase to R224,080.48 per year (approximately R18,673 per month) from 1 March 2022. Previously, the earnings threshold was R211,596.30 per year (approximately R17,633 per month). Accountants should consider the impact of the increase and that certain employees might now fall under thew legal requirements from 1 March 2022, where they might have been excluded previously. Find the gazette here.

Context for the beginner

The earnings threshold is the ‘dividing line’ where certain provisions of the Labour Relations Act (LRA) and the Employment Equity Act (EEA) apply. In terms of the Basic Conditions of Employment Act (BCEA), all employees earning in excess of the earnings threshold, are excluded from the ambit of certain sections of the BCEA, which primarily deal with:

There are 2 ways of submitting the EMP501 reconciliation:

Need assistance

Should you require assistance with your EMP501 you can find an accountant here 

Department of Labour Update on Covid-19-TERS and UIF provides important principles

Notice

The Department of Employment and Labour: Limpopo Province’s Unemployment Insurance Fund (UIF) hosted a media briefing on 23 Feb 2022 to provide an update on the COVID-19 Temporary Employer-Employee Relief Scheme (Covid-19-TERS) and normal benefits paid in Limpopo during the 2021/2022 financial year. The briefing provides important principles.

Read more here.

Information and Implications

Context for the beginner

26 March 2022 marked the two-year anniversary since the Covid-19 Temporary Employer-Employee Relief Scheme (Covid-19 TERS) was established. Read more here.

Need assistance

Email enquiries and questions to technical@saiba.org.za for further assistance

Reminder: Commencement of the Property Practitioners Act 22 of 2019

Notice

Following a proclamation notice on 14 January 2022, President Cyril Ramaphosa has declared 1 February 2022 as the date that the Property Practitioners Act 22 of 2019 (PPA) will come into operation. Find the proclamation notice here:

Information and Implications
Accountants should consider a change in accounting policy for the recognition of revenue by property practitioners. Although not always enforced, it was common practice among estate agents to include a clause in the sale contract stating that, should the sale be cancelled for whatever reason, the commission is still payable to the agency. In terms of the PPA, this is no longer allowed. Commission is only allowed to be collected upon registration of the property.

The PPA allows for property practitioners with an annual turnover of less than R2,5 million to select an independent review of their business financial statements instead of an audit. Where the property practitioner trades as a company, the Companies Act 71 of 2008 should, however, also be considered. In terms of the Companies Act, a company holding fiduciary assets that exceeded R5 million at any point in time during the financial year will have to be audited. The decision to have the financial statements independently reviewed instead of audited should thus be carefully considered in terms of all laws and regulations affecting the entity.

More specific requirements have been added to the PPA in prescribing the requirements of accounting records to be maintained by practitioners, for example client mandates and advertising material.

Compliance with the PPA will be monitored by inspectors. Practitioners found to have breached the PPA can be liable for a fine of up to R200 000 or a maximum sentence of 10 years’ imprisonment.

Context for the beginner

Before the Property Practitioners Act (“PPA“), the real estate industry was regulated by the Estate Agencies Affairs Act (“EAAA“). The EAAA regulated all things to do with property and estate agency. However, following the changes in time and practice, the EAAA became inadequate to regulate the real estate industry. The EAAA also did not regulate or cater to transformation within the industry. The PPA therefore repeals the EAAA in its entirety. The PPA was signed into law in 2019 but did not come into effect immediately. The date has however been set by the President and the PPA will commence on 01 February 2022. Along with the commencement of the PPA are accompanying regulations (the “PPA Regulations“).
The intention of the PPA is to provide for the regulation of property practitioners and repeal the Estate Agency Affairs Act 112 of 1976 in its totality and does not intend for the continuation of the Estate Agency Affairs Board but will henceforth be known as the Property Practitioners Regulatory Authority (PPRA) whose functions will include specific Consumer Protection, Consumer Education and the transformation and regulation of the industry, and furthermore provides for the governance of the Regulating Authority to promote a framework for property practitioners.

To download the PPA click here.

Need assistance

Email enquiries and questions to technical@saiba.org.za for further assistance

Technology

New Excel Text and Array functions improvement on Text to Column function

Notice

Anyone who uses the Text to Column function in Microsoft Excel should take note of the new “Text Extract” functions.

Information and Implications

Accountants should be aware of the new text manipulation functions improve efficiency when working in excel worksheets.

These functions include:
TEXTSPLIT
TEXTBEFORE
TEXTAFTER
VSTACK
HSTACK
TOROW
TOCOL
WRAROWS
WRAPCOLS
TAKE
DROP
CHOOSEROWS
CHOOSECOLS
EXPAND

Context for the beginner

When working with text, a common task to complete is to edit text strings using a delimiter. Fourteen new Excel functions have been developed to assist Excel users with the manipulation of text in worksheets.

Read more here.

Financial Modellers and Data Analysers should take note of Microsoft Excel’s new Dynamic Array functions

Notice

Accountants should be aware of Excel’s new Dynamic Array functions that enable you to work with multiple values at the same time in a formula. Dynamic Arrays and the new functions are only available Excel 365 and Excel 2021

Information and Implications

The Dynamic Array functions will improve the ability to sort and find information in large datasets. Even dynamic timelines can now be inserted in data and financial models.
The Dynamic Array functions solve some complex problems in Excel, and fundamentally change the way worksheets are designed and constructed.

Context for the beginner

Read more here.

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