The new South African Companies Act, 2008 will become effective on 1 July 2010. The new act mandates that all companies and close corporations prepare their financial statements in terms of a financial reporting standard. Failure to prepare financial statements in terms of an appropriate standard will result in criminal liability. However, an important exemption is proposed in the regulations to the act. Owner managed companies and close corporations are exempt from following IFRS and IFRS for SME and may follow a new proposed framework, commonly known as Micro-gaap. This new framework presents an opportunity to significantly reduce the compliance burden on preparers of financial statements and reduce the cost of producing financial statements for owner managed companies and close corporations. Sole proprietors, partnerships and trusts will be able to voluntary adopt the application of Micro-gaap in the preparation of financial statements.

This seminar will present and overview of the proposed new framework so as to provide attendees with an understanding of how and when it should be applied. An illustrative example will be provided which will enable immediate application in a bookkeeping, accounting and auditing practice.

1. Statutory requirements related to financial reporting standards for companies

2. Criminal liability for preparers of financial statements and how this could be avoided

3. Exposure draft 275: Financial Reporting Framework for Non Public Entities (commonly known as Micro-gaap) as issued by SAICA and ECSAFA

4. The basis of accounting underlying Micro-gaap

5. Purpose, objectives and scope of Micro-gaap

6. Transitional provisions and effective date for applying Micro-gaap

7. Principles, recognition and measurement criteria applicable to Micro-gaap

8. Changes. In accounting policies, Corrections of prior period errors, and Changes in accounting estimates

9. Presentation of Micro-gaap financial statements

10. Components of financial statements and Micro-gaap

11. Disclosure requirements related to Balance Sheets, Income Statements and Cash Flow Statements

12. Notes to Micro-gaap financial statements

13. Related party disclosures, Events after balance sheet date, Defined terms, Business combinations, and Equity accounting

All those that are involved with the preparation of financial statements for owner managed entities including bookkeepers, accountants, auditors, directors and members of companies and close corporations.

Professor Hentie van Wyk - CA (SA)

Hentie was born in Bloemfontein in 1956. He matriculated in 1974 and after national service he obtained the B. Com degree in 1978. He became a Chartered Accountant (SA) in 1982 after he served his trainee period at an International Accounting firm (KPMG). He was promoted to Audit Manager at the accounting firm and in 1984 left for the University of the Free State as a Senior Lecturer. He was promoted to an Associate-Professor in 1988 and as Professor and Head of the Centre for Accounting in 1992. He obtained a PhD in 2003 in Public Sector Management and is currently the programme director for Accounting Education at the University of the Free State.

He is currently lecturing Advanced Accounting to aspirant chartered Accountants on the postgraduate level. He is also involved in the MBA and MDP programs of the Business School of the Faculty of Economic and Management sciences. He also presents update courses on a yearly basis to practicing accountants countrywide.

He is very involved in the affairs of the accounting profession. He is currently serving as a Board member of the Free State Society of Chartered Accountants and was President of the Society in 1994. He also served on the Board and Exco of the South African Institute of Chartered Accountants for several years.