Hi
Is there a new format Directors Report for an SME? I cant find any reference to new requirements other than in section 30 of the Companies Act, which is limited. And there's no guidance in the IFRS for SMEs standard.
Thanks!
Hi
Is there a new format Directors Report for an SME? I cant find any reference to new requirements other than in section 30 of the Companies Act, which is limited. And there's no guidance in the IFRS for SMEs standard.
Thanks!
Hi Ian.
IFRS actually does not require a directors report, which is why you can't find anything. However as you point out, Sec.30 requires it and general consensus is that it forms part of the reviewed / audited AFS.
I use a checklist that covers Sec.30, and a little bit more:
1. Have all matters material for an appreciation of affairs of the company been dealt with?
2. Is the report in narrative form?
3. Has a general review of the state of affairs and financial position been given?
4. Have all material fact or circumstance that occurred between the year-end and the date of the report been disclosed?
5. Unless stated elsewhere, have the following been disclosed:
5.a. Nature of business of company and any major change?
5.b. Details of class and number of shares, convertible instruments and debentures issued, the consideration received and purposes and circumstances of issue?
5.c. Details of shares, convertible instruments or debentures issued during the year to directors or their immediate family?
5.d. Any change in the nature or the policy relating to the use of fixed assets in the company?
5.e. The amount of any dividends paid, declared or proposed for each class of shares?
5.f. Management of the company or subsidiary by a third party or a company in which a director has an interest and the details of such interest?
5.g. The names of the directors and any changes during the year?
5.h. The holding company and ultimate holding company (if any) and country of incorporation if not South Africa?
6. The estimated proportion of net income (loss) attributable to the various classes of business?
Thanks Clive, thats really helpful!
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