Category: Accounting and Tax Blogs

What Is Financial Distress?

an emergency exit sign on an orange wall

What Is Financial Distress? Financial distress is a condition in which a company cannot generate revenue or income because it is unable to meet or cannot pay its financial obligations. This is generally due to high fixed costs, illiquid assets, or revenues sensitive to economic downturns. Ignoring the signs of financial distress can be devastating…

Corporate Governance

At PATC, we define corporate governance as the system of rules, practices and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company’s many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a…

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

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

a close up of stacks of coins on a table

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.

Saving Tax when Selling Your Business and or Property

We have recently assisted a client when selling their property and a similar scenario when they sold their business / property. So, how do you ensure you are saving tax when selling your business and or property? In summary, their tax liabilities were as follows: Capital Gains Tax = 80% inclusion rate and then 28%…

Qualifying or Non-Qualifying Report

In an audit engagement, the auditor gives his opinion on the financial information disclosed by your business. The auditor’s report is an integral element of your business’s audited financial statement. At the culmination of the audit engagement, the auditor expresses his opinion in the auditor’s report, which can be qualified or unqualified.

Professional Development

Knowledge of Fasset and Skills Development Fasset is the Finance and Accounting Services Sector Education and Training Authority. The finance and accounting services sector is particularly important because it is the largest employer of people with financial management, accounting, and auditing skills. In 2012 more than 135 000 people worked in the sector.

Client Liaison Best Practices

The best way to improve communication is to write a communication policy that outlines your plan to exchange information between clients, vendors and employees. For example, when handling potential clients who have expressed an interest in your services, you may want to create a new client communication policy that defines what steps should be taken…