IFRS for SMEs / Public Interest Score: which framework and what assurance

Public Interest Score: which framework and what assurance

Calculating the score

The Companies Regulations (regulation 26(2)) give one point for each of the following:

• each employee, on average, during the financial year;
• every R1 million, or part of it, of third-party liabilities at year end;
• every R1 million, or part of it, of turnover during the year;
• every individual with a direct or indirect beneficial interest in the company's securities at year end.

Which framework

• A score of 350 or more requires full IFRS.
• Below 350 the company may use IFRS or IFRS for SMEs, unless it has public accountability.
• Below 100, with statements compiled internally, the company chooses its framework.

Which assurance

• An audit is required from 350 points, or from 100 points when the statements are compiled internally.
• Otherwise the statements need an independent review, performed by a registered auditor from 100 points.
• A company whose shareholders are all directors is exempt from audit and independent review unless its Memorandum of Incorporation requires one.

Confirm against the Regulations

This is a summary, not legal advice. Confirm the result against the Companies Act and Regulations and the company's Memorandum of Incorporation.