South African listed companies are to change accounting standards next July, after the Department of Trade and Industry in December released the long-awaited regulations to the new Companies Act of 2008. The changes are good for businesses but will mean extensive changes. They offer reporting flexibility to suit different business types but align standards between companies and the often smaller close corporations.
Companies that require auditing, including public, state-owned and private companies, will need to meet highest reporting standards. Accounting for smaller companies is expected to be aligned in a way that makes them more useful for shareholders, lenders and the SA Revenue Services tax authorities.
The new regulations are expected soon on the Department’s website. The Act was promulgated last April and is set to come into effect in July 2010.