Section 6 of the IFRS for SMEs gives you two options—and choosing the right one can save time, cut costs, and keep your clients out of SARS trouble. In this article, we break down when to use the full Statement of Changes in Equity and when you can simplify with a Statement of Income and Retained Earnings. It’s not just about compliance—it’s about working smarter, billing better, and proving your value.

Too many accountants still fumble the basics of Section 5 reporting—and that can make your work look sloppy, even if it’s technically correct. Whether you're prepping year-end for a client or presenting to a board, how you lay out that income statement matters. This article breaks down exactly what Section 5 of IFRS for SMEs requires—no jargon, no fluff. You’ll see why choosing one or two statements isn’t just an admin choice, and how small mistakes (like calling something "extraordinary") can raise red flags with SARS or your client.

Understanding how to account for plants, animals, and farm produce is important for businesses in agriculture. IFRS for SMEs Section 34 explains how to record and report biological assets like crops and livestock and harvested products like milk or fruit. This article breaks down the key rules in simple terms, helping businesses stay compliant and manage their finances better.

The statement of financial position shows what a business owns, what it owes, and what is left for the owners. It helps businesses understand their financial health at a specific point in time. Section 4 of the IFRS for SMEs explains how to present this information clearly. By following these guidelines, businesses can organise their assets, liabilities, and equity in a way that makes sense. This ensures financial reports are accurate and useful for decision-making

Financial statements must be clear, accurate, and follow IFRS for SMEs. They should reflect the true financial position of a business and include key reports like the balance sheet, income statement, and cash flow statement. Consistency, transparency, and proper labeling help ensure reliability for investors and stakeholders.

The Companies Act of South Africa outlines specific requirements for financial reporting, determining when a company must be audited, undergo an independent review, or simply compile financial statements. These requirements are primarily based on a company’s Public Interest Score, its classification, and whether its financials are prepared internally or independently. Public companies, state-owned entities, and large private companies typically require audits, while mid-sized companies may only need an independent review. Small, owner-managed businesses often qualify for a basic financial compilation. Understanding these thresholds helps companies comply with regulatory requirements while ensuring appropriate levels of financial oversight.

Investment property under IFRS for SMEs refers to land or buildings held for rental income or capital appreciation. The standard outlines how to recognise, measure, and disclose investment property in financial statements. Properties can be measured at fair value if reliably measurable or at cost if not. Mixed-use properties require classification based on usage. Leased properties can be treated as investment property under specific conditions. Proper accounting ensures transparency and accurate financial reporting for SMEs.

Annual financial statements help businesses understand their financial health. They show what a company owns, what it owes, how much profit it makes, and where its cash goes. IFRS for SMEs makes these reports simpler for small businesses. Knowing how to read them can help with better decision-making and financial planning. Read the full article to learn more about each statement and why they matter.

IFRS for SMEs is a financial reporting framework designed for small and medium-sized businesses. It simplifies accounting rules, reduces paperwork, and lowers compliance costs while still following international standards. Unlike full IFRS, it has fewer disclosures, simpler financial instruments, and an easier approach to leases and goodwill. This makes it a practical choice for private companies that do not need complex financial reporting. Businesses using IFRS for SMEs can benefit from clearer financial statements, lower costs, and easier compliance while maintaining credibility with investors and lenders.

Accounting for leave pay means knowing whether it is a short-term or long-term benefit and whether to use IAS 19 or IAS 37. This article explains, in simple terms, how to classify leave, calculate costs for unused leave days, and record the amounts correctly in financial statements. It also provides examples to help business accountants handle both straightforward leave situations and those with uncertain timing or amounts.

Revenue recognition can often feel complicated, but understanding IFRS 15 is essential for getting it right. This guide breaks down the 5-step model in simple terms, using practical examples to help you support your clients with clarity and confidence. From retail sales to telecom contracts, discover how to ensure accurate, transparent financial reporting.

Workers injured at work or who develop workplace-related illnesses have rights under South African law. This article explains how workers’ compensation works, the steps employees should take after an incident, and what employers need to do to comply. A practical example highlights how these processes apply in real life, making it a valuable resource for CIBA members. Read the full article to stay informed.

Management accounts are a powerful tool for guiding businesses toward better decisions and stronger financial health. This article explores how these reports reveal trends, track performance, and highlight opportunities for growth. Learn how to prepare clear, actionable accounts that help your clients manage cash flow, control costs, and plan strategically for the future

The construction industry is full of unique challenges—cash flow issues, compliance rules, and tricky accounting for big projects. This article breaks it all down, from VAT and CIDB requirements to managing costs and retention funds. It’s everything you need to know to better serve your clients.

Cash flow is the heartbeat of every small business. It’s not just about tracking what’s coming in and going out but ensuring there’s enough cash on hand to cover daily needs like rent, supplier payments, and wages. Even a profitable business can struggle if cash isn’t managed well. This article shares practical steps, from setting up a simple cash flow forecast to managing expenses, collecting payments faster, and building a reserve. With real-world tips and a look at how Sarah’s boutique got back on track, you’ll gain easy-to-apply advice to help clients keep their cash flowing smoothly.

Fraud can quietly drain resources and disrupt small businesses, but with a few simple steps, owners can protect themselves. As a BAP(SA) member, you have the tools to help clients create a fraud-resistant environment. This article covers practical tips—like setting up basic checks and balances, encouraging a culture of honesty, using simple technology to track finances, and regularly reviewing for fraud risks. Small businesses don’t need big budgets to make a difference; they just need awareness and a few smart moves to safeguard their hard work.

As the year draws to a close, many businesses face the task of wrapping up their financial year end. In this article, we share easy-to-follow tips to help you, as a BAP(SA), guide your clients through a smooth and stress-free year-end close. Discover practical steps you can take to make sure your clients are ready for the year ahead.

Leases can be a bit confusing, but understanding the difference between finance and operating leases is key to mastering small business accounting. Whether you're renting or 'owning' your way through a lease, knowing how to recognize and treat them is a game-changer for accurate financials.

Valuations play a critical role in business, from buying or selling a company to succession planning and resolving disputes. This article breaks down the different types of valuations, the steps involved, and how agreed-upon procedures offer tailored, factual insights without assurance. It's a practical tool for CIBA members to help clients make informed financial decisions.

As a director, understanding how to access funds from your company is key to maintaining smooth operations and personal financial planning. Whether it’s through a salary, loans, or dividends, each option comes with its own benefits and considerations. Explore the best strategies to draw income while keeping your company financially sound. Read on to learn more about which method suits you.