STANDARDS REPORT BACK STRATEGY The focus for Standards in by SonnyWoodcock

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									STANDARDS REPORT BACK
________________________________________________________________

STRATEGY
The focus for Standards in 2009 will be on better understanding and serving our
members’ individual professional and technical needs.
The overall priorities for Standards Division for 2009 are as follows:
    • Build lobbying capacity (by cooperation with other business bodies, as
        appropriate)
    • Deliver effective query system
    • Optimising customised and targeted communication
    • Website management – relevance, correctness, “freshness”
Details underlying the contents of this report are available under “Technical Information”
on the SAICA website.


STAFFING
It is with pleasure that we announce the re-appointment of Muneer Hassan as Project
Director: Taxation. We will be exploring the business model in the tax area and are
likely to supplement our resources here to expand our offering, notably to small and
medium practices.

We are also currently assessing having two additional Project Managers to assist in
Governance, Sustainability & Public Sector and Reporting – Public & Private Sector.

We continue to evaluate additional areas in which members require assistance, e.g.
Enterprise Risk Management and Management & Cost Accounting.


GOVERNANCE
Companies Act
The new Companies Act is potentially set for enactment on 1 June/July 2010 after being
assented to by the President on 8 April 2009, without an effective date being
promulgated. Numerous regulations and transitional provisions are in the process of
being drafted to be issued as a single “book”. This process is not intended to address
deficiencies in the Act itself, but some Interpretation Notes may emanate to provide
clarity in certain areas. The envisaged timetable for the regulations is as follows:
         21 August 2009        Completion of initial consultations
         30 September 2009 Distribution of preliminary draft to stakeholders
         15 October 2009       Final date for stakeholder responses
         1 November 2009       Completion of Draft for Public Comment
         15 November 2009 Publication in Gazette
         15 February 2010      Final Date for Public Comment
         31 March 2010         Submission of Final Regulations for Promulgation
On 21 August SAICA made a submission to dti regarding the regulations required in the
following areas:
     • Section 28 – Company to keep accurate and complete accounting records
     • Section 29 – Financial Reporting Standards
     • Section 30 – Qualitative and quantitative thresholds for audit requirement
     • Section 30 – Manner, form and procedures for the conduct of independent
        reviews
     • Section 30 – Professional standards for persons to conduct such independent
        reviews
     • Section 72 – A company or a category of companies required to establish a
        social and ethics committee
     • Section 94 – Minimum qualifications to be prescribed for audit committee
        members

Interim communication highlighting the numerous high impact or problem areas will be a
regular feature in Communiqué – keep your eyes peeled! These thus far include:
        27 August 2009 - SAICA Submission to the dti regarding the Companies Act
        Regulations
        13 August 2009 - Definition of a group
        30 July 2009 - Protection for whistle-blowers
        16 July 2009 - Retention of documents
        2 July 2009 - New Companies Act requirements for the company secretary
        18 June 2009 - New Companies Act identifies audit committee as statutory
        committee
        22 May 2009 - Different types of companies to be formed
        7 May 2009 - New company law showers employees with extra privileges
        30 April 2009 - More information on the regulations

Please visit our dedicated web page for comment on core issues pertaining to the new
Act: Technical Information > Legal and Governance > Companies Act 71, of 2008.

The Ad-hoc Committee on Corporate Law is drafting guidance and developing training
initiatives for members in respect of the Companies Act, which will be finalised once the
Regulations have been published for comment. Training should be available from
January 2010.

The final Companies Act, no. 71 of 2008, is available on the SAICA website in English
and Afrikaans, as is the Memorandum on the objects of the Companies Act No 71 of
2008. Please note that editorial corrections submitted by SAICA to the State Law
Advisers were not incorporated before the Bill was signed by the President. We are still
awaiting a meeting with the Minister of Trade & Industry where we will raise our
concerns regarding the Regulations and issues pertaining to the Act. We will also raise
concerns regarding the effective functioning of CIPRO.
Legal & Compliance Committee (LCC)
Consumer Protection Act
The LCC will be publishing guidance for members on the implications of the Consumer
Protection Act.

Remuneration governance and reporting
SAICA’s LCC, in conjunction with the South African Rewards Association (SARA), is
seeking to develop guidance for governance processes and oversight for remuneration
across entities. This will not duplicate the practice note to be issued by the IOD for King
III.

The King III practice note will address the annual remuneration report and remuneration
philosophy, principles, practices and processes. This will be split between general
principles and processes and directors remuneration specifically.
While assurance is recommended in King III, SAICA will specifically address this aspect
as well as disclosure issues.

King III
The King III Code and Report were published on 1 September 2009.
SAICA supports the principles embodied in the Code and has been an active participant
on the King Committee. Numerous CAs(SA) were also closely involved in the process in
various capacities.
SAICA is particularly pleased with the enhanced focus on Sustainability and the overall
risk-centric approach embraced by King III.
The revision was necessitated by the Companies Act, 2008, which has incorporated
many of the principles contained in King II. Both of these developments will continue to
position South Africa at the forefront of good governance on the international stage.
While King III has no legal backing, except as adopted by the JSE Listings
Requirements, SAICA encourages ALL entities to apply the principles insofar as is
practicable.
The Code and Report can be downloaded from the IOD website at www.iodsa.co.za.

Master’s Office
We still await a meeting with the Minister of Justice to highlight SAICA’s role and
particularly raise concerns about the effective functioning of the Master’s Office and
inconsistencies between offices. Regular meetings will also take place with the newly
appointed Chief Master in conjunction with the LSSA.

Legal training
In conjunction with external providers and in co-operation with the LSSA, SAICA will be
looking to provide basic legal training in the areas of Procedure and Alternate Dispute
Resolution.

We expect to finalise a new Circular on Retention of Records this month.
TAX
Provisional tax
The provisional tax legislation is due to be amended to include proposals that SAICA
made to the Standing Committee on Finance (SCOF) during public hearings held in
June 2009.

SAICA, with the support of other professional bodies, had lobbied for the retention of the
basic amount (being the taxable income reflected in the most recent assessment
received from SARS) when making the second provisional tax payment. Our proposals
were outlined in a joint submission dated 10 July 2009.

In the submission, we also proposed the introduction of a two-tier system with different
rules for smaller and larger taxpayers. National Treasury and SARS yesterday (5
August) reported back to the SCOF on proposed provisional tax changes contained in
the Draft Taxation Laws Amendment Bills 2009. We are pleased to announce that the
majority of SAICA’s proposals have been implemented. According to the revised
proposals, a two-tier approach is envisaged for second provisional tax estimates:

Tier 1: Smaller taxpayers:
A return to the old "basic amount" safe-harbour system, which includes the 20% penalty
for estimating below the lesser of basic amount and 90% of actual taxable income.
However, the basic amount will now include an automatic annual 8% increase.

Tier 2: Larger taxpayers:
The current requirement of 80%-of-actual taxable income will be retained, but the 20%
penalty will be made discretionary rather than automatic. This means that SARS will no
longer be able to apply an automatic penalty and would have to give due consideration
to whether the taxpayer intended to delay the payment of provisional taxes. This is a
welcome relief for corporate taxpayers who would otherwise have to disclose such
penalties in their financial statements pending an appeal to SARS.

Differentiation:
Smaller taxpayers will mean taxpayers with a taxable income up to R1million.

According to National Treasury’s response document to Parliament, the R1million
threshold will place 90% or more of provisional taxpayers by volume in Tier 1.

SAICA has been involved in discussions with SARS and National Treasury for over 12
months since changes to Paragraph 20 of the Fourth Schedule to the Income Tax Act
were first announced in the Draft Revenue Laws Amendment Bill 2008.

We are pleased to see our persistent efforts finally come to fruition.
Tax Practitioners Bill
The revised Tax Practitioners Bill (TPB) is only expected in 2H09. A Guide for Tax
Practitioners is being prepared and will be issued around October 2009, but timing will
remain highly dependant on the TPB.

While it was anticipated (or maybe hoped) to be a quieter year on the tax front, the
following submissions have been made in 2009:
                                                                                       Date
 No.           Submission name                                                         submitted
           1   Draft Guide for Recreational Clubs                                      23-Jan-09
           2   Discussion Paper: International Subsistence allowance                   30-Jan-09
           3   Draft Guide for Micro Businesses                                        21-Jan-09
           4   VAT Registration problems                                               10-Feb-09
           5   Submission on the expense relief ratio for long-term insurers           10-Feb-09
           6   Submission to SARS: s23(o) Corrupt activities, fines and penalties      24-Feb-09
           7   IRBA Audit working paper Guide                                          11-Mar-09
           8   Draft IN: Wear-and-tear or depreciation allowance                       13-Mar-09
           9   Taxation Laws Amendment Bill 2009                                       02-Apr-09
          10   Draft Interpretation Note s11(A) Pre-Trade Expenditure and Losses       25-Mar-09
          11   Changes to provisional tax: paragraph 20 of the 4th schedule            09-Apr-09
          12   Learnership allowances                                                  17-Apr-09
          13   Submission to National Treasury on Dividends Tax                        23-Apr-09
          14   Submission to SARS on PAYE Issues                                       05-May-09
          15   Submission to Treasury on PAYE Issues                                   05-May-09
          16   Submission to SARS on Differential Timelines for Tax Practitioners      08-May-09
               Submission to SARS on Call for comment Draft Interpretation Note 17
          17   - Independent Contractors                                               15-May-09
               Submission to SARS Call for comment Interpretation Note 35 –
          18   Personal Service Providers                                              15-May-09
          19   Submission to SARS on VAT: Section 27: Tax periods                      19-May-09
          20   Submission to SARS on VAT Interpretation Note 30 Issue 2                22-May-09
          21   Submission to SARS Draft VAT Interpretation Note - s8(25) of the Act    22-May-09
          22   Submission to SARS Draft Interpretation Note on Self Invoicing          22-May-09
               Submission to SARS on Section 8C, section 10(1)(nD), paragraph 11A
               of the Fourth Schedule and paragraph 2(a) of the Seventh Schedule:
          23   Taxation of directors and employees on vesting of equity instruments    22-May-09
               SAICA Submission to SARS on s16 (3) Draft Interpretation Note -
          24   Documentary Requirements                                                27-May-09
               Submission to Treasury on s121 - Additional investment and training
          25   allowances in respect of industrial policy projects                     29-May-09
          26   Submission on Draft Taxation Laws Amendment Bill 2009                   18-Jun-09
               Submission to SARS on the right of Taxpayers or their representatives
          27   to attend SARS Internal Committee Meetings                              22-Jun-09
               Submission to Treasury on Draft Taxation Laws Amendment Bill 2009
          28   Second Batch and Explanatory Memorandum                              26-Jun-09
               Joint Submission to Treasury on Provisional Tax Legislation in the
          29   Draft Taxation Laws Amendment Bill 2009                              10-Jul-09
               Submission to SARS on VAT and the sale of an enterprise as a going
          30   concern                                                              4-Aug-09
          31   Submission to SARS on PAYE Reform 2010                               13-Aug-09


A first Tax Conference is planned for 26 and 27 October 2009 at the Sandton
International Convention Centre – a must-attend event for all tax specialists!


ACCOUNTING
Micro GAAP
The micro GAAP framework, entitled “Reporting Framework for Non-public Entities”
(RFFNPEs), will be re-released for public comment in the week of 7 September 2009. It
remains our intention to table the Framework for approval by the APB this year. The
APB’s approval is sought for recognition as the framework to be applied by companies
and close corporations not required to apply existing SA GAAP (IFRS). It is thus
intended that RFfNPEs will co-exist with SA GAAP: IFRS for SMEs and be applied at the
discretion of the preparers and users of entities not deemed to be in public interest.

Key areas of relief offered by RFfNPEs in comparison to IFRS for SMEs:
   • No consolidation required
   • Historical cost throughout (fair value disclosure discretionary)
   • Finance leases need not be capitalised
   • Tax depreciation rates can be applied (NOT accelerated allowances)

A short-form questionnaire, also incorporating key issues about review and thresholds,
will be available online. Members are requested to please complete this as it will only
take 5 – 10 minutes. It will also be made available to about 180 000 companies via
BUSA.

Financial Crisis
A vote of sincere thanks to Prof. Wiseman Nkuhlu who most ably represented South
Africa on the international Financial Crisis Advisory Group (FCAG). The FCAG issued
its final report in July, providing recommendations in the following areas:
     1. Effective financial reporting
     2. Limitations of financial reporting
     3. Convergence of accounting standards
     4. Standard setter independence and accountability
The FCAG will hold its follow-up meeting on December 15th in London.
SAICA Standards attended the IFAC G-20 Accountancy Summit in London in July. We
support the resulting submission to the G-20’s September meeting in Pittsburgh, USA,
that contained the following:
    1. The G20 should encourage all governments to adopt and implement common
       global standards not only for accounting, but also for auditing and for auditor
       independence
    2. We acknowledge progress made by the International Accounting Standards
       Committee Foundation (IASCF) toward reforming the governance structure of the
       International Accounting Standards Board (IASB); however, the G20 should take
       further steps to ensure that the IASB can function independently without
       inappropriate political interference
    3. The G20 should support the adoption and implementation of International Public
       Sector Accounting Standards (IPSASs) in all nations
    4. The G20 should call for measures to enhance corporate governance in their
       respective countries and in the global marketplace
    5. The G20 should explicitly address the needs and the realities of small and
       medium sized enterprises in the formulation and implementation of policies and
       reforms
    6. The G20 should commit to the long term strengthening of the accountancy
       profession in developing and emerging countries
    7. The G20 should facilitate a debate with prudential regulators and a broad group
       of users of financial statements to consider the implications for financial reporting
       of making adjustments to standards to meet the needs of prudential monitoring
       and supervision
    8. The G20 should support the development of new tools and metrics to achieve
       global sustainability

APC
IAS39
The IASB is driving changes to accounting for financial instruments and related issues
as urgent amendments. David Castleden of Nedbank has kindly been made available to
act as the full time liaison with the IASB on this front. The following elements are being
addressed with an expected effective date of new IFRS being years commencing on or
after 1 January 2011, with early adoption being permitted:
    • Derecognition (ED259)
    • Consolidation (ED252)
    • Credit risk in liability measurement (ED263)
    • Fair value measurement guidance (ED262)
    • Classification and measurement (ED267)
    • Impairment (expected 4Q2009)
    • Hedging (expected 4Q2009)

Members can register for email alerts regarding developments in this regard via a link at
http://eifrs.iasb.org/eifrs/Menu
Comment letters
The following comment letters have been submitted so far in 2009:

No.   Submission name                                                               Date Submitted
1     ED 255 – Investments in Debt Instruments – Proposed amendments to             15 January 2009
      IFRS 7
2     ED 254 – Embedded Derivatives – Amendments to IFRIC 9 (AC 442) –              21 January 2009
      Reassessment of Embedded Derivatives and IAS 39 (AC 133) –
      Financial Instruments: Recognition and Measurement
3     ED 246 – Additional Exemptions for First-time Adopters, Proposed              23 January 2009
      amendments to IFRS 1
4     ED 247 – Discontinued Operations, Proposed Amendments to IFRS 5               23 January 2009

5     ED 256 – Post-implementation revisions to IFRIC interpretations – 02 March 2009
      proposed amendments to IFRIC 9 (AC 442) and IFRIC 16 (AC 449)
6     ED 251 – Relationships with the state – proposed amendments to IAS 24 13 March 2009
      (AC 126)
7     ED 252 – ED 10 Consolidated financial statements                      20 March 2009
8     ED 250 – Review of the constitution – identifying issues for part 2 of the    31 March 2009
      review
9     ED 249 – Discussion Paper on Preliminary Views on Financial Statement         14 April 2009
      Presentation
10    The Australian Accounting Standards Board’s (AASB) discussion paper           18 June 2009
      on Initial Accounting for Internally Generated Intangible Assets
11    ED 253 –- Discussion Paper – Preliminary Views on Revenue                     19 June 2009
      Recognition in Contracts with Customers
12    ED 258 – Discussion Paper – Leases – Preliminary Views                        17 July 2009
13    ED 261 – Prepayments of a Minimum Funding Requirement –                       27 July 2009
      Proposed amendments to IFRIC 14 (AC 447) – IAS 19 (AC 116)
14    ED 259 – Derecognition – Proposed amendments to IAS 39 and IFRS 7             31 July 2009
15    ED 260 – Income Tax                                                           31 July 2009
16    ED 266 – Request for Information (Expected Loss Model) – Impairment of        1 September 2009
      Financial Assets: Expected Cash Flow Approach
17    ED 263 – Discussion Paper on Credit Risk in Liability Measurement             1 September 2009
18    ED 269 – Classification of Rights Issues - Proposed amendments to IAS         7 September 2009
      32

The following comment letters are currently work in progress:
No.   Submission name                                                              Deadline
1     ED 262 – Fair Value Measurement                                              28 September 2009
2     ED 264 – Management Commentary                                               1 March 2010
3     ED 267 – Financial instruments - Classification and Measurement              14 September 2009
4     ED 268 – Rate-regulated activities                                                                20 November 2009
5     ED 270 – IFRIC D25 - Extinguishing financial liabilities with equity                              5 October 2009
      instruments
6     ED 271 – Discount Rates for Employee Benefits: Proposed                                           30 September 2009
      Amendments to IAS 19
7     ED 272 – Improvements to IFRSs - Proposed amendments to IFRSs                                     24 November 2009
       Please note, SAICA members’ comments are generally required 2 weeks prior to the dates listed above


Headline earnings
Listed companies are required, in terms of JSE Listing Requirements, to publish a
headline earnings figure which is currently determined in accordance with Circular
8/2007 - Headline Earnings. Circular 8/2007 contains various rules on International
Financial Reporting Standards (IFRSs) that were issued before June 2007. Many
amendments to IFRSs have been issued since June 2007 and as a result Circular
3/2009 - Headline Earnings has been issued to revise Circular 8/2007. Circular 3/2009
has amended the rules table of Circular 8/2007 to take into account all amendments to
IFRSs issued from June 2007 to April 2009.

Circular 3/2009 is effective for interim and/or annual financial periods ending on or after
31 August 2009.

Proposals to amend the rules table and terminology used in Circular 8/2007 were issued
in June 2009. Comments received on ED 265 - Proposed Circular on Headline Earnings,
were considered in finalising Circular 3/2009. The one major change made as a result of
the comments received on the exposure draft, was the effective date.

APB
The Accounting Practices Board met on 13 August 2009 and approved the IFRS for
SMEs for immediate use in South Africa. This has been issued as a Statement of
Generally Accepted Accounting Practice (GAAP): IFRS for SMEs. The APB withdrew
the Statement of GAAP for SMEs for financial periods ending after 31 August 2010.

Based on the scope of the IFRS for SMEs and the relevant Companies Act legislation,
the APB have allowed for the broader use of the IFRS for SMEs than was allowed for
the Statement of GAAP for SMEs. In terms of the Corporate Laws Amendment Act,
2006, a “limited interest company” or a “widely held company” as defined, may use the
IFRS for SMEs provided the company does not have public accountability as defined in
Section 1 of the IFRS for SMEs.

Refer to Circular 2/2009 - International Financial Reporting Standard for Small and
Medium-sized Entities (IFRS for SMEs), for more on who can use this framework, the
effective date, audit reporting considerations and transitional arrangements.
Seminars on the application of IFRS for SMEs commence in September 2009 in major
centres around the country. On the SAICA website you will find the IFRS for SMEs, the
fact sheet, press releases and more.

The Accounting Practices Board (APB) approved Additional Exemptions for First-time
Adopters - Amendments to IFRS 1(AC 138): First-time Adoption of International
Financial Reporting Standards (IFRSs) and Group Cash-settled Share-based Payment
Transactions - Amendments to IFRS 2(AC 139) - Share-based Payment, as
amendments to Statements of Generally Accepted Accounting Practice (GAAP),
following its meeting held on 13 August 2009.


AUDITING
Based on responses received on the discussion paper Executive Summary of Review
Engagements, deliberations by the Ad-hoc Committee on Corporate Law and the views
of the SAICA Board, SAICA made a submission to dti on the proposed Regulations to
the Companies Act, 2008 (see “Governance” above).

A discussion paper entitled Cost of Practice Review has been discussed with and
presented to National Treasury. The paper can be accessed on the SAICA website:
Technical Information > Auditing > Submissions

Amendments to the JSE Listing Requirements relating to accredited auditors and IFRS
advisors should be released this month for public comment.

We have obtained agreement from the National Lotteries Board to include SAICA on the
approved list of institutions whose members may sign off reports for the distributing
agencies.

The requirements for being an accredited verification agency have been extended to
become effective only in 2010. Effective 1 August 2009:
1. The previous verification certificates have been repealed;
2. Verification certificates issued by non-accredited verification agencies before 1
February 2010, will remain valid for 12 months from the date of issue; and
3. Only BEE Verification certificates issued by Accredited Verification Agencies or
Verification Agencies that are in possession of a valid pre-assessment letter from South
African National Accreditation System will be valid, as from 1 February 2010, and such
certificates will be valid for 12 months from date of issue.
SAICA is endeavouring to address the accreditation of CA firms as verification agencies,
hence also our “firm registration” initiative. Firms are NOT limited to audit practices.
Please note that IRBA is doing the same insofar as RAs are concerned.
The issues here are similar to those around the Tax Practitioners Bill and the Review in
terms of the Companies Act as to accreditation.
Comments received on the discussion paper on limiting auditors’ liability are currently
being considered and incorporated where appropriate. This process will run in
conjunction with a similar initiative by IRBA. National Treasury has also been informed
of this initiative.

Numerous regulatory and other reporting requirements have been identified and are
being driven through IRBA’s RISC to provide guidance. It has been agreed with IRBA
that SAICA will issue guidance where assurance provision is not limited to Registered
Auditors. Such guidance will be developed in consultation with IRBA.

The following existing and new matters are currently being addressed:
                                            Responsibility   Responsibility     Joint
                                               of IRBA         of SAICA       Assistance

BEE                                              Yes                              #

Conveyancing                                     Yes

SABC                                                             Yes #

Attorney's trust                                 Yes                             Yes

Sustainability                                                    Yes            Yes

CCs / Micro GAAP                                                  Yes

Guidance for Auditors: Department of             Yes                              #
Trade and Industry - Strategic Industrial
Projects Programme

Department of Trade and Industry                 Yes                              #
incentive programmes - Guidance for
auditors and other accredited persons
Enterprise Investment Programme                  Yes

Estate Agents                                    Yes

3/2005 - Clarification of Certain Audit-                          Yes
Related Activities in Relation to the
Financial Advisory Intermediary Services
Act
NCA

Medical Schemes                                  Yes                             Yes

Retirement Funds

EXCON D458 prudential reporting                                                  Yes
requirements
Basel II reporting - amend SAICA Guide                            Yes

SASRIA                                           Yes
Guide on Pro Forma Financial Information     Yes          #

Revised Guide on Profit Forecasts            Yes          #

Guide on reporting on financial              Yes          #
information contained in interim,
preliminary, provisional and abridged
reports

Quarterly asset allocation

5/99 Auditor's report on the annual                      Yes
financial statements of private higher
education institutions
Circular 05/07: Template letter for                       #
Auditors - Compliance with the Reporting
Requirements of Section 45 - Duty to
report on Reportable Irregularities
Circular 4/2007 - Letters for Auditors to                 #
send to clients outlining the requirements
of section 45 of the Auditing profession
Act - The duty to report on Reportable
Irregularities
Circular 7/2006 - Auditor's reporting              Yes
responsibilities in terms of the
Regulations to the Banks Act

13/2005 - Reports Relating to Certificates   Yes
Prepared by a Company for
Conveyancing Purposes
11/2005 - Reporting in terms of the                Yes
Immigration Act (As Amended) and the
Immigration Regulations
10/2005 - Reporting on Attorneys' Trust            Yes
Accounts in Terms of the Attorneys Act
and the Rules of the Law Societies

9/2005 - The Reporting Accountant's          Yes          #
Reporting Responsibilities in Terms of
Section 13 of the Listings
Requirements of the JSE Limited
2/2004 The Auditor's Reporting               Yes          #
Responsibilities in terms of Section 8.64
of the JSE Securities Exchange South
Africa Listings
5/98 Right of the SARS to call for audit     Yes
files
Long-term Insurance Audit Guide [Issued                  Yes
February 2007]
Guide on Performance Audit in the Public     Yes         Yes
Sector [Revised and Issued July 2006]
Engagement letters for non-audit services                        Yes #

Reporting to the Registrar of Banks in                           Yes
terms of the Regulations to the Banks Act
Reports on the processing of transactions      Yes
by service organisations
Guide on Valuations
Guide on Trading Whilst Factually
Insolvent
Guide on Registered Auditors audit of
JSE Listed Companies



PUBLIC SECTOR
The Public Sector Audit Committee Forum launch has been delayed in order to finalise
the detail of offerings and obtain a complete database of participants. The launch will
take place in Gauteng and in Cape Town in conjunction with National Treasury and the
IOD.

The Public Sector Technical Forum (PSTF) is growing in stature and we are in process
of embedding the Forum into the resolution and issuing of GRAP interpretations.

A Public Sector (Audit) Technical Forum under the auspices of IRBA’s CFAS has also
been formed and is currently finalising its Terms of Reference. SAICA is participating in
this forum.

The AG Rates negotiations for 2010/11 have been completed, but it has been agreed
that a thorough review is required for 2011/12 and this will commence with a workshop
between the Public Sector sub-committee and the AGSA in October/November.
Continued delays in settlement of arrears by the AGSA continues to be actively
addressed.

The following submissions have been made to the ASB:
Submission on ED 45 - Impairment of Non-cash-generating Assets           31 July 2008
and ED 46 - Impairment of Cash-generating Assets

Proposed Guideline: Accounting for Public-private Partnerships           30 June 2008

DP 3 – Financial Instruments                                              8 May 2008


ED 44 - Heritage Assets and Discussion Paper 4 - Transfers of            30 April 2008
Functions
FINANCIAL SERVICES
The seven working groups are back on a firm footing under the auspices of Yusuf. Their
input as well as that of all members will be sought for the second Financial Services
Conference taking place on 5 and 6 November 2009 at Emperors Palace. The themes
will hinge around Risk Management and Sustainable business models and practices,
with reference to the lessons learnt from the global financial crisis.

We are considering the formation of a National Financial Services Committee to address
issues of mutual interest to all financial services industry participants. It is envisaged
that regulators would be key players on this committee.

The Financial Services website has been extensively revamped and members are
encouraged to visit the site for up-to-date information on the matters receiving attention
in this space:
Technical Information > Financial Services


SUSTAINABILITY
A call for nominations to a Sustainability Committee will be issued shortly. Two SAICA
publications have been issued in the Sustainability space:
The Reporting and Assurance of Greenhouse Gas Emissions in South Africa, and
Green, a comprehensive introduction to the concept of sustainability.

A separate website was launched to coincide with the launch of Green.


QUERIES DATABASE
SAICA’s query system is a web-based system whereby members make use of the
Frequently Asked Questions section of the SAICA website to seek resolution to their
query. Should their question not be addressed there, a new question can be posed via
the appropriate “Ask a question” facility. Final upgrades to the system are almost
complete.

SAICA Standards (Ashley Vandiar) actively monitors replies, turnaround time, issues
unsatisfactorily resolved (i.e. responses rated “poor” by members) and repetitive issues
for broader communication (e.g. FAQs), clarification and possible training interventions.
FAQ Dashboard between 1 January 2009 and 31 August 2009:
Total Questions                                 Total Questions in their Sections
Total                               1092        Accounting                          326

Answered                            1086        Auditing                            112

Un-answered                            6        BEE                                   9

                                                Complaints against CAs                6
Un-answered Questions
                                                Financial Services                  17
1 Day                                       2
                                                Legal and Ethical                   44
3 Days                                      0
                                                Legislation                         51
5 Days                                      2
                                                Marketing and PR                      2

                                                Other                               98
Views
Sections                              3805      Public Sector                         6

Sub Sections                         15349      SAICA                               15

Questions                            29354      Tax                                 406

View Clicks


Satisfaction
Total                         394

Poor (13.20%)                 52    4.8%
Middle (16.24%)               64    69.6%
Excellent (70.56%)            278   25.6%
MEDIA COVERAGE
The following media coverage has been generated by Standards this year, excluding
topic-specific releases by Project Directors in their areas:
  23/01/2009 ITI News          Management, investors also guilty in global credit crisis
  23/01/2009 Citizen           IFRS rules skew M&F
  01/02/2009 Business Brief    Excessive employee protection
  18/02/2009 Mercury           Even simplified Micro-GAAP demands the attention of a CA(SA)
  24/02/2009 ITI News          SA sets the pace in new small business accounting standards
  25/02/2009 Business Report   Examining their role in global economic crisis
  25/02/2009 Moneyweb          Saica's view on King III
  25/02/2009 AgriWorldSA       Saica's view on King III
  27/02/2009 Mogol Post        SA sets the pace in new small business accounting standards
  03/03/2009 Business Day      Easier standards for SMMEs almost ready
  06/03/2009 Financial Mail    The little things that count
  06/03/2009 The Mail          New accounting standards for small business
  11/03/2009 RSG Geldsake      Micro GAAP
  16/03/2009 Volksblad         Klein sake kry eie standaarde
  24/03/2009 ITI News          King III's application to all SA entities "a business revolution"
  08/04/2009 Burger            Vereenvoudig rekeningkunde, gebied G20
  08/04/2009 Sake Beeld        Vereenvoudig rekeningkunde, gebied G20
      Apr-09 Entrepreneur      King III - What you need to know
      Mar-09 Enterprise Risk   King III draft
  05/06/2009 Business Day      Fair value rules ‘not to blame for crisis’
  08/06/2009 Sake Beeld        Swak maatskappyresultate nie ons skuld
      Jun-09 Business Brief    New reality in corporate governance
  05/06/2009 allAfrica.com     Fair value rules ‘not to blame for crisis’
 08/06/2009 Sake Beeld         Swak maatskappyresultate nie ons skuld
     Jun-09 Business Brief     New reality in corporate governance
 05/06/2009 allAfrica.com      Fair value rules ‘not to blame for crisis’
                               Companies Act heralds big changes for close
 20/07/2009   Business Day     corporations
 23/07/2009   FinWeek          New Company Act not written in stone
 07/08/2009   Business Day     Accountants aim to tame crisis
 12/08/2009   Business Day     New bills would lower tax penalty
 12/08/2009   Moneyweb         Sars caves in on provisional tax
                               Accounting needs convergence on global standards —
 14/08/2009   Business Day     summit

								
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