The impact of IFRS is far reaching.
With the arrival of IFRS, the global business community now faces a challenging time to ensure it is adequately prepared for the requirements of the standards. The introduction of international standards means that most organisations will need to change their financial policies, processes and systems.
How up to date are you?
How does this affect you?
The transition to IFRS is more than just a financial reporting exercise.
The impact of these fundamental changes and the increased comparability that will result, if not appropriately managed, could directly affect your organisation's reputation within the marketplace and ultimately its market value.
With these consequences in mind, can your organisation afford not to prioritise IFRS?

Who does this effect?
It is significant that South African Statements of Generally Accepted Accounting Practice (SA GAAP) have been fully aligned with IFRS. This means that all companies (both Ltd and (Pty) Ltd) are required to adhere to SA GAAP, and therefore by default IFRS.

The JSE Securities Exchange's revised listing requirements require listed companies to comply with International Financial Reporting Standards (IFRS) for financial periods beginning on or after 1 January 2005. This is in line with similar decisions in the European Union, Australia and Asia.

A circular released by the South African Institute of Chartered Accountants (SAICA) points out that as a result of the harmonisation, "there are very few differences between Statements of GAAP and IFRS".

Minor differences relate to editorial differences, implementation dates and additional disclosure requirements. The only noteworthy difference lies in AC 133, Financial Instruments: Recognition and Measurement, as South Africa early adopted an international proposal to allow any financial asset to be designated as held for trading, and thus fair valued
SAICA says that in future the Accounting Practices Board will issue the text of IFRS in South Africa without any amendments. "Future Statements of GAAP will therefore be the exact replica of the relevant IFRS."

Common questions:
What is SA GAAP?
• The South African statements of Generally Accepted Accounting Practice are the standards issued by the South African Institute of Chartered Accountants.
• Since the 1990's South Africa has harmonised and aligned its standards with those of the IASB, i.e. IFRS!
• In terms of a resolution taken by SAICA in 2004, all new South African standards will be exactly in line with the IFRS standards issued by the International Accounting Standards Board.
Is SA GAAP the same as IFRS?
No! SA Statements of GAAP is a different framework to IFRS.
• To be IFRS compliant, companies must adopt IFRS 1. This is compulsory for South African listed companies and voluntary for all other companies. Without adopting this standard, a South African company cannot call itself IFRS compliant.
• For those companies that stay on SA Statements of GAAP, their financial statements will be very similar to IFRS financial statements.
• From all years starting on or after 1 January 2005, the differences will be limited to the 12 “aligned” statements that have different effective dates to their international equivalents.
Will the IFRS changes affect SA GAAP?
Yes.
• In line with SAICA's policy, all the new, improved and revised statements issued by the IASB have been adopted into SA GAAP
• These standards have effective dates for years commencing on or after 1 January 2005, apart from 3 standards which are effective for all years commencing on or after 31 March 2004.

Venue

Date: 19 May 2008 to 20 May 2008
Location: Hotel Apollo, Randburg

Contact: Hennie Oosthuizen
Company name: African Information Institute
Telephone number: +27 11 7811155
Email address hennie@aii.co.za

Share this page (Tell me more)

Click on one of the links below to share this page on a social bookmarking website. To read more on social bookmarking click here