For many SMEs, the biggest change in the updated IFRS for SMEs is not how much of a company is owned, but who actually controls it. The revised Section 9 introduces a broader definition of control that looks beyond voting rights and focuses on who has the power to direct key decisions, who is exposed to the risks and rewards of the business, and who can use that power to influence outcomes. As a result, family groups, trust structures, and companies with dispersed shareholders may need to reassess whether consolidation is required, even where no single party holds a majority stake.

What qualifies as an asset? What creates a liability? These questions sit at the heart of every set of financial statements, yet the answers have changed significantly with the latest IFRS for SMEs updates. The revised framework moves away from a strict focus on probability and places greater emphasis on rights, obligations, relevance, and faithful representation. For accountants and business owners alike, this shift could affect how software licences, intellectual property, contractual rights, legal claims, and other uncertain items are recognised and reported in the years ahead.

Accounting standards rarely make headlines, but the latest update to IFRS for SMEs is one of the most significant changes in years. With major revisions to revenue recognition, business combinations, consolidation, financial instruments, and fair value measurement, accountants and business owners need to start preparing now. The transition period is already underway, and those who understand the changes early will be best positioned to guide their clients through what comes next.

Intangible assets are often some of the most valuable resources a business owns, yet they are also among the least understood. From software and licences to patents and trademarks, these assets help businesses generate income and remain competitive, even though they cannot be physically seen or touched. Understanding how IFRS for SMEs treats intangible assets is essential for finance professionals, particularly when deciding whether costs should be recognised as assets or expensed. By applying the principles of Section 18 correctly, accountants can ensure that financial statements remain accurate, reliable, and useful for decision-making.

You have a property on the books. But is it working in the business, or is it earning money on its own? The answer determines whether it is classified as Property, Plant and Equipment (PPE) or Investment Property under IFRS for SMEs. While the buildings may look the same, the accounting treatment is very different. This article breaks it down in simple terms so you can classify property correctly and avoid costly mistakes.

Related-party transactions are one of the biggest hidden risks in family-run businesses. When family members own suppliers, properties, trusts, or other businesses connected to the company, important disclosures can easily be missed. For independent reviewers and compilers, understanding these relationships is essential to producing reliable financial statements, managing compliance risks, and protecting both the client and their own professional reputation.

High interest rates are pushing many businesses closer to the edge without owners even realising it. A company can look profitable on paper while struggling to pay suppliers, SARS, staff, and the bank. This article explains the real warning signs accountants should watch for, from growing overdrafts to rising interest costs, and why spotting these problems early can save a business before it falls off the cliff.

Thousands of South African non-profits are at risk of deregistration simply because their financial statements and compliance records are not in order. This article breaks down what every NPO needs to know about annual financial statements, reporting deadlines, audits, accounting officer requirements, and the real risks of getting it wrong. Written in simple language, it explains how proper financial records protect your funding, your reputation, and your ability to continue serving your community.

Accrual accounting is the principle that ensures financial statements reflect what actually happens in a business, not just when cash moves in and out of the bank. By recognising income when it is earned and expenses when they are incurred, it provides a clearer and more accurate picture of performance. This approach moves beyond the simplicity of cash accounting and allows business owners and professionals to understand the true results of their activities, make better decisions, and avoid the misleading effects of timing differences.

When preparing a compilation report for an SME, it is important to understand that IFRS for SMEs and ISRS 4410 do not compete with each other. They serve different purposes. IFRS for SMEs is the framework used to prepare the financial statements, which means it determines how the numbers and disclosures are presented. ISRS 4410 is the standard that guides the practitioner on how to perform the compilation and how to write the report. In simple terms, IFRS for SMEs explains what the financial statements must look like, while ISRS 4410 explains how the practitioner does the work and reports on it.

One phone call. One rushed decision, one mistake that changed everything. This article looks at real-world governance failures in local government that are costing accountants their careers, often not because of fraud, but because of pressure, shortcuts, and “just this once” decisions. If you work in or advise government, read below and learn how to protect yourself before it’s too late.

Trust accounting under the Legal Practice Act 28 of 2014 is one of the most heavily regulated areas in South African legal practice, and one of the most commonly mismanaged. The mistakes are often technical in nature, but the consequences are anything but.

Every time a sale is made, your accounting system records more than just income. It also captures the cost of the product you sold, even if you never see it happening. This is what shows whether your business is actually making money. When you understand how revenue, VAT, cost of sales and inventory work together, your numbers start to make sense and your financial decisions become far more informed.

Only 28% of audits passed the IRBA's latest inspection. The rest? Flagged, referred, or failed. And if you think that's the auditor's problem, think again. Your financial statements feed directly into every deficiency they're finding. Here's what it means for your practice and the steps you can take to ensure your clients' files hold up under scrutiny.

Most independent review problems don’t start with technical standards, they start when the practitioner must draw a conclusion and sign the report. If the work performed isn’t clearly documented or evaluated, that final step becomes difficult. This practical guide walks through the key steps to finalise an independent review, evaluate findings, and issue a defensible report.

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.

In many small businesses, one trusted individual quietly becomes the centre of every financial process, approving payments, capturing transactions, reconciling bank accounts, and reviewing their own work. While this arrangement often grows out of necessity rather than intent, it concentrates risk in a way that is rarely visible until something goes wrong. Errors go undetected, pressure builds, and the absence of independent oversight undermines both governance and confidence in the numbers. What appears efficient on the surface can, over time, expose the business to financial loss, compliance failures, and reputational harm.

IAS 41 leaves no room to avoid fair value measurement. When active markets exist, prices provide clear evidence, and when they do not, valuation models step in to reflect expected future cash flows. This approach forces accountants to recognise growth and risk before anything is sold, which can feel unsettling but reflects economic reality. Mastering fair value under IAS 41 is not just a technical exercise, it is essential for producing financial information that decision makers can trust.

IAS 41 does not apply simply because something is alive. The key question is why the business holds the asset and whether it is managing biological transformation for profit. The same animal can fall under completely different standards depending on its purpose, and once agricultural activity is confirmed, correct classification becomes critical. Consumable assets, bearer assets, plants, animals, and harvested produce all follow different accounting paths, and a mistake at this stage distorts every number that follows.

Agriculture does not fit neatly into traditional accounting models. Biological assets grow, reproduce, deteriorate, and change value even when nothing is bought or sold. Weather, disease, and time itself all affect value. IAS 41 exists because cost accounting cannot explain this reality. It recognises that when a business manages living assets for economic benefit, growth and risk are part of performance. The challenge is not whether the assets are alive, but whether the numbers tell the truth about what is really happening on the farm.