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					Editors Notes
Wow!! Not only has 2008 arrived but we are well into it. Our first newsletter
for 2008 contains articles on our Cape Town offices, our massage therapist,
an interview with Carol Adlam, purchasing in a new development, our ever
ready generator, City of Johannesburg newsletter, our 2007 year en
function, the Ooba Golf Day as well as a newsletter on a Sod turning event
of one of the developments that we are proud to be associated with – St.
Micheils!

As always if you do not want to be emailed our e-mag, please feel free to
unsubscribe by clicking on the link at the end of the newsletter. Thanks for
being a friend of the firm and for your continued support over the years.

Petrus Engelbrecht

Cape Town

                                                           We are proud to start the new year with the first anniversary of EKV
                                                           Cape Town. 2007 was a wonderful and eventful year and we have
                                                           positive     forecasts     and   high    expectations    for   2008.
                                                           It looks like the long wet winter in Cape Town is now a thing of the
                                                           past and building sites are buzzing all over the Western Cape. Our
                                                           developers in Hermanus, Gansbaai, and Durbanville are all on track
                                                           and a total of 92 units are expected to be ready for occupation and
                                                           transfer by mid 2008 and another 108 by end 2008.
                                                           On 1 March 2008, Wynand Claassens from our Johannesburg office
                                                           will be joining us permanently in Cape Town as Conveyancer in the
                                                           Transfer and Bond Department. We shall as always aim to build
                                                           solid relationships in Cape Town and impress our clients
                                                           countrywide           with        our       personal         service.
                                                           Thank you to all our clients for making our first year a very
                                                           successful               and             memorable               one!

                                                           Elmarie van der Berg
                                                     Massages

                                                     As we all know, we live in a very stressful and fast paced business world
                                                     where our health is often neglected. At EKV, we are very aware of the
                                                     stress levels our employees endure and we believe that a well balanced
                                                     employee         is      happier        and        more       productive.

                                                     Consequently, we have arranged for a massage therapist who specializes
                                                     in corporate stress management to visit our office on a weekly basis to
                                                     assist employees with their needs and ensure a healthy, happy workforce.




Interview with Carol-Wynne Adlam
Director of EKV Inc.

Who is Carol…?

   1.   What do you do to relax?
        Mostly I read – I can easily loose myself in a good story.




   2.   What makes you smile?
        The things my 2 and a half year old comes up with, and some of my clients.




   3.   Where did you complete your studies and why did you decide on that University?
        B.Proc and LLB at RAU, Diploma in Insolvency at the University of Pretoria and my LLM partly at RAU and partly at
        UNISA. I went to RAU initially for the most obvious reason – my best friend from high school went there!




   4.   What do you treasure most?
        Time




   5.   What are your responsibilities at EKV?
        I head the commercial transfer department. Our department attends to all commercial transactions and transfers,
        which includes aspects of technical conveyancing, drafting of all commercial agreements, registration of companies,
        Close Corporations, trusts and, well, everything else that comes our way.




   6.   If you had not become an attorney, what profession would you have chosen?
        An architect – I can just image how satisfying it must be to design a building and to see it become a reality.




   7.   Complete this sentence: "To me EKV Inc Family means……?"
        "to do whatever it takes".
    8.   Can you play a musical instrument and if so which instrument?
         No, and believe me, no one would want me!




    9.   Do you believe in retail therapy?
         Yes, in a very big way!




    10. If you could go overseas tomorrow (all expenses paid) where would you go to and why?
        Copenhagen over Christmas – I just have to experience a white Christmas. It is probably a not-yet-grown-up-thing!




A REAL ESTATE SALE: A CONSTRUCTION CONTRACT OR A SALES CONTRACT

When purchasing in a new development, the buyer is normally required to pay a refundable deposit and the construction will
begin. Although the contract is signed on this day, the deposit will be repaid should the house not be delivered and the buyer
will only have to pay the remaining purchase price on completion of the construction. The following week the deposits are in
the developers’ bank account and now the accountant has to decide how to account for the deposits. The answer is
dependent on whether the developer has entered into a Sales contract (IAS 18) or a Construction Contract (IAS 11)?

Property, plant and equipment are generally sold in terms of a Sales Contract which means that an entity applies the
recognition criteria in IAS 18, Revenue. The recognition criteria is in essence built around the transfer of the risks and rewards
of ownership, which normally occurs with the transfer of legal title or the passing of possession to the buyer. Thus, under
normal circumstances the developer will only recognise the income at the date the contract is completed and not when it is
signed.

However, when the contract is signed prior or during construction the question arises whether the contract still falls within the
scope of IAS 18, Revenue or should it rather be accounted for in terms of IAS 11, Construction Contracts as it contains all the
typical features of construction contracts, such as land development, design and construction?

A construction contract is defined as “ … a contract specifically negotiated for the construction of an asset or a combination of
assets…”

In other words, the contract will fall within the definition if seller has to provide construction services to the buyer. The
international Financial Reporting Interpretations Committee (IFRIC) has issued a draft interpretation note (D21) which provides
examples of features that indicate that an agreement includes the provision of construction services. These are:

    1.   The buyer is able to specify major structural elements of the design prior to construction or to specify major structural
         changes once construction has commenced; or
    2.   The seller transfers the risks and rewards of ownership of the real estate in its current state as construction
         progresses. Indicators could include:
             o The construction is taking place on land that the buyers own or lease; or
             o The buyer has the right to take over construction at any time; or
             o If the contract is terminated prior to completion the buyer retains the right to complete construction and the
                  seller has the right to be paid for the work completed.

In these circumstances, the accounting treatment will fall under IAS 11, Construction Contracts, and revenue will be
recognised as construction progresses (in terms of the percentage of completion method).
As with any sale, the main issue of the sale of uncompleted real estate is the timing of transfer of the risks and rewards of
ownership to the buyer, i.e. whether the risks and rewards of ownership remain with the seller/developer until completion or
whether they are transferred as construction progresses. The draft interpretation note attempts to deal with this matter with the
final interpretation note expected during the first half of 2008.

Source: Accounting SA, December 2007/January 2008

Vin Diesel the Generator

With the load shedding and unpredictability of electricity cuts, EKV Inc has invested in a generator to assist us in these
uncertain times. We have found that we have depended tremendously on it recently and it has become a part of our EKV
Family and every family member needs a name. So we turned to our staff to come up with a name. After much deliberation,
Leane Janse van Rensburg’s name for our generator took the prize:- Vin Diesel. Congratulations, Leane!




Extracts from the customer news letter for City of Johannesburg for January 2008

 If you see your tenant has fallen into arrears with their municipal account and is making no effort to make arrangements to pay
it off, or is simply not paying for the services they have used. You can request the restriction or termination of the service by
faxing a signed written request (with full details of the account) to 011 358 3164.

Tenants can't open accounts without the permission of the property owner. Tenants who wish to open accounts
must:

    •    Get the property owner (or his or legal proxy) to co-sign the account application form;
    •    Provide a certified copy of the property owner's (or his or her legal proxy) ID with the account application; and
    •    Provide a certified copy of the lease agreement and indicate the starting date of occupation.

To open and account tenants are required to produce:

    •    A valid ID book and (if applicable) a valid ID book or certified copy of ID book for their spouse;
    •    Spouse's details, spouse's employer's details, spouses banking details (where applicable);
    •    Next of kin's details; and
    •    Banking details.

 You should request copies of your tenant's accounts so you can monitor them, for piece of mind. Do this by sending an email
to statements@joburg.org.za with your request.

 Being disconnected from your power or water supply is very frustrating, inconvenient and expensive. To avoid the hassle,
always pay your account on time and in full. If you do get cut-off, however, here's what's involved.

Electricity

Many customers think that they are only at threat of being cut-off when they haven't paid their account for a few months. That’s
not the case. When the balance brought forward from one previous month is reflected in the overdue box on your account,
then you are already scheduled in the system for cut-offs with our Credit Control process. If your account states that you
haven't paid and are in arrears, what you do next depends on whether the statement is correct or not.

 You should have received a Disconnection Notice. Check that the notice is addressed correctly, with both your name and
residential address. Then check that the account number stated corresponds to yours, and that the balance is correct.

WANT TO SETTLE YOUR ACCOUNT

Pay the outstanding amount at any ABSA bank branch or at our Customer Service Centres. If you can't pay the amount in full
and want to make an arrangement to pay it off over time, you must come in person to our Customer Service Centres is
Braamfontein, Roodepoort, Randburg, Sandton or Midrand.

 When you have paid or signed an arrangement, call Joburg Connect on 011 375 5555 to register your payment, and you will
receive a reference number. You must then fax your proof of payment immediately to 011 358 3164, marked with your
reference number. Then call back 30 minutes later and, by quoting that reference number, our agent will be able to confirm if
your reconnection request has been processed. Proof of payment received prior to 4.30pm will ensure same-day processing; if
it is received later than this, processing will only take place the next day.

For resident's safety, reconnections are not done late at night.

DISAGREE?

If you don't agree with any of the details given in the Disconnection Notice, please call Joburg Connect on 011 375 5555 to log
a query. An agent will then generate the reconnection instruction and your services won't be disconnected until the query has
been resolved.

Third Party Payments

Third Party Payments (such as Internet transfers or payments made through Easypay outlets such as Shoprite Checkers,
Woolworths, Pick n Pay etc.) can take up to five days to reflect on your account. Remember that reconnection instructions will
only be given once the outstanding payments are reflected on your account

IF YOU DON’T TAKE ACTION

If you don't respond to the Disconnection Notice within seven days, then your services will be removed completely (your
electricity meter will be removed). In this instance you will have to pay the outstanding amount in full, with cash or a bank
guaranteed cheque. This can only be paid at Thuso House, Braamfontein. Once these payments have been made, you will
need to go to a City Power depot and apply and pay for a new connection and new meter.

Water

The process for cut-offs is the same for water as for electricity, except that in domestic cases, the water is severely restricted
rather than disconnected. In commercial instances, however the water is disconnected.


Year End Function

In 2007, our Year End Function was held at the Kloofzicht Lodge which brought with it tranquility and relaxation. Our event
started with employees socializing and admiring the scenery. We celebrated with tasty food, energetic company and an award
ceremony whereby nominated employees were given prizes for different categories, Directors were presented a gift from a
member of their department as a token of appreciation for their motivation an encouragement. The event continued with lively
music and employees "shaking a move" on the dance floor; followed by a mini Olympic event whereby employees won prizes
for winning the swimming race and sprinting. The event ended with some employees jumping into the pool and others taking a
walk and enjoying their surroundings. It truly was a memorable event enjoyed by all.
                                       Visit our web site on www.stmicheils.co.za


Ooba Golf Day at the Ruimsig Golf Course.

What        a       fun      day,     the       Ooba        Golf        Day       turned      out        to       be…
Not    even     the   winter  skies  could     dampen    the     spirit  of  all     the  players     and    sponsors.
The 17th Hole was an awesome position for our company to be situated at. We were on top of the Hill, and from the Club
House,      our     Black    and    White      banners     and       Gazebo      could    be      seen      by     all.
We were pleased with the judge’s decision in nominating us in 5th place for one of the most "WOW FACTOR" stands.

Thank you to Ooba for inviting us to a very successful Golf day.




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