Category: Accounting and Tax Blogs

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…

Rights, Powers and Duties of Office Bearers

The Committee of Management is the governing body of a non-profit organisation and is legally accountable to the body of members for its decisions, actions and obligations, and to always act on their behalf and in their interest. The Committee directs and monitors the financial and operational performance of the legal entity through a formally…

A General Article about Risk.

(We at PATC do not conduct Audits on Annual Financial Statements as governed by IRBA however, we regularly advise, guide and make recommendations and or take on forensic work…) Risks & Materiality – Materiality is a fundamental concept in auditing. It means that misstatement, including omissions, are considered to be material if they, individually or…

INTERNAL CONTROL PROCEDURES

Internal Control Definition – Internal controls are systems and procedures designed to ensure that all employees perform their duties ethically, honestly and to ensure the continued reliability of the accounting system.