Category: Uncategorized Blogs

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

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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

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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…

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)

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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…

Forecasts of Future Results

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Forecasting in business is the practice of predicting a company’s financial results at certain points in the future, based on certain assumptions and estimates as well as past performance. At we PATC, we understand that whether the forecasting method is simple or sophisticated, the objective is to enable the company to take certain actions in…

Financing

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Financing is the act of providing funds for business activities, making purchases or investing. Financial institutions and banks are in the business of financing as they provide capital to businesses, consumers and investors to help them achieve their goals. PATC is here to help you understand business financing, keep reading the blog as we explore…

Tax Planning: Fringe Benefits & Allowances

tax planning

What are the possible allowances and fringe benefits? Below are the lists of available allowances and fringe benefits. Also Read Now: Valuation of Shares, Goodwill & Members Interest

Preservation, Safekeeping & Maintenance of Records

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A person must keep records, books of account or documents. The retention of records will assist a person to fulfil the requirements of the Tax Administration Act and to satisfy SARS that the person has complied with the requirements. Who is it for? Tax Administration Act requires the following persons to keep records: