Author: Jono

Company Records

a pair of glasses resting on an accountancy textbook

PATC defines company records as any documents, accounts, books, writing, records or other information that a company is required to keep in terms of the Companies Act 71 of 2008, or any other public regulations. The Companies Act states in Section 24 that records should be retained in writing or in a form that can…

Duties of Accounting Officer, Auditor & Reviewer

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Understanding How These Roles Differ & Relate Keep reading PATC’s blog and discover the differences and overlap between the duties of your accounting officer, auditor & reviewers. Duties of an Accounting Officer An accounting officer is a person who meets the qualification requirements as detailed in section 60 of the Close Corporations Act 1984 and…

VAT Registration & Deregistration

three stacks of coins with scrabble tiles stacked on them to spell out VAT

Who Should Register for VAT? Any person that carries on business may register for VAT. You can register once for all different tax types using the client information system. The term person is not only limited to companies but also includes, amongst others, individuals, partnerships, trust funds, foreign donor-funded projects and municipalities. In order to…

Recording Transactions in Compliance with the Accounting Framework

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Revenue Measurement of Revenue Revenue should be measured at the fair value of the consideration received or receivable. An exchange for goods or services of a similar nature and value is not regarded as a transaction that generates revenue. However, exchanges for dissimilar items are regarded as generating revenue.

Leases

a close up of someone signing a contract with a nib pen

Classification of Leases A lease is classified as a finance lease if it transfers substantially all the risks and rewards incident to ownership. All other leases are classified as operating leases. Classification is made at the inception of the lease.

Donations Tax: Estate Duty

lots of paperwork, a computer mouse, a coffee cup and a pen

What is Estate Duty? Estate Duty is payable on the estate of every person who dies and whose nett estate is in excess of R3.5 million. It is charged at the rate of 20%. Estate duty is levied on the property of residents and South African property of nonresidents less allowable deductions. The duty is…

Employees Taxation

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Personal Service Company or Trust This is a company (or trust as the case may be) that is not a labour broker, and whose services to clients are performed on its behalf by a connected person; and such a person would be regarded as an employee of the client if the relationship was directly between…

Liquidation Procedures of All Entities

PATC reveals the financial significance of foreign exchange transactions

Liquidation is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they come due. As company operations end, the remaining assets are used to pay creditors and shareholders, based on…

Defining Capital Expenditure (CAPEX)

various notes of south african currency

Capital Expenditure (CAPEX) Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. It is often used to undertake new projects or investments by the firm. This type of outlay is also made by companies to maintain or increase the scope of…

Understanding Foreign Exchange

various world currency notes

A foreign currency transaction should be recorded initially at the rate of exchange at the date of the transaction (use of averages is permitted if they are a reasonable approximation of actual). At each subsequent balance sheet date, foreign currency monetary amounts should be reported using the closing rate non-monetary items, carried at historical cost…