Upon closer inspection of the official statement from the office of the President, this is my interpretation on it and not official advice. Using the tax system, we will provide a tax subsidy of up to R500 per month for the next four months for those private-sector employees earning below R6,500 under the Employment Tax…
During the process of strategic planning, budgeting for the long-term should be a major consideration. Trying to plan for long-term expenses often proves difficult for many people. Here are the basics of how to budget for long-term success. Determine Goals The first thing that you will need to do to plan is to decide exactly…
Solvency & Liquidity Test A test required by the Companies Act which requires the directors of a company to assert that the company can meet all its expenses out of its incomes for the next 12 months (liquidity) and that its assets are more than its liabilities (solvency). This test must be conducted before the…
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…
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…
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…
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
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…
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.
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.
