Not Everything You Buy Is an Expense

Bought a laptop for R20,000? Many business owners assume the full amount must be expensed immediately. In accounting, that’s not always the case. Some purchases are assets, not expenses — and how you record them affects your profit and financial statements. This practical guide breaks down fixed assets and depreciation using a simple example showing how an asset bought today can still appear on the balance sheet years later, and how spreading costs over time keeps financial statements accurate.

Financial instruments are not just about recording numbers, they also require clear and correct notes in the financial statements. This article explains the disclosure requirements under Section 11 of the IFRS for SMEs, focusing on what SMEs must include in their AFS. We cover key areas like impairment, aging of debtors, maturity of loans, and fair value challenges. You will also see examples of common mistakes and how to fix them. This guide helps Business Accountants in Practice meet their disclosure duties with confidence.