GAA Accounting

The Journal of the Global Accounting Alliance

15/04/2014
by GAA Accounting
Comments Off

Hong Kong Institute of CPAs’ Council and Members Agree on Reform

While there is broad consensus on a proposed audit regulatory framework, European Commission equivalence and monetary penalties are among more contentious issues after Institute reviews member feedback.

Members of the Hong Kong Institute of CPAs have indicated strong support for the Council’s position on the proposed audit regulation reforms, a review of written submissions received during the consultation period and a statistical analysis of responses to a recent online survey indicate. Continue Reading →

15/04/2014
by GAA Accounting
Comments Off

International Integrated Reporting Framework for the Future

By George W. Russell

The release of the International Integrated Reporting Framework at the end of last year marked an important milestone for a new era in corporate reporting. George W. Russell reports on the reaction in Hong Kong and asks experts about the next steps to be taken.

After two decades of conception and nearly three years of trial, integrated reporting became a reality in December 2013 with the release of the International Integrated Reporting Council’s framework. Continue Reading →

15/04/2014
by GAA Accounting
Comments Off

Section 45 of the South African New Companies Act: Thorny issue?

By Natasha Sexton

Section 45 of the new Companies Act – Loans or other financial assistance to directors – remains difficult.

Two years have passed and implementation of the new Companies Act 71 of 2008 should be in full swing, or is it? One area that has resulted in much confusion and many questions is loans and other financial assistance to directors (section 45). Directors and smaller practitioners (auditors and independent reviewers) are struggling to identify when section 45 is applicable and which steps are appropriate to follow.  Continue Reading →

15/04/2014
by GAA Accounting
Comments Off

Forensic Accounting: What could you buy with $3.5 Billion?

By Bruce Thornton

“A man who has never gone to school may steal from a freight car, but if he has a university education he may steal the whole railroad” – Theodore Roosevelt

At the end of 2012, the Association of Fraud Examiners (ACFE) released the findings of a fraud and corruption survey from some 1 400 respondents in 100 countries (appropriately captioned 2012 Report to the Nations) with the basic message being that fraud in the world today has reached seismic proportions. Continue Reading →

15/04/2014
by GAA Accounting
Comments Off

The Reality of Intra-group Financial Assistance

By Cicelia Potgieter

While Doris Lessing, British novelist, poet and playwright, had the luxury of believing that “borrowing is not much better than begging and lending with interest is not much better than stealing”, South African taxpayers in multinational groups have to contend with the reality of intra-group financial assistance.

Since 2011, there have been some significant developments in section 31, South Africa’s transfer pricing legislation. Many of these developments affect the cross-border provision of financial assistance between connected persons. The purpose of this article is to summarise the currently applicable transfer pricing legislation governing cross border finance, looking specifically at: Continue Reading →

15/04/2014
by GAA Accounting
Comments Off

Contradictory Data from CFOs May be a Hopeful Sign

A new report on the outlook of CFOs worldwide throws up an interesting South African anomaly – which could be a result of renewed transformation momentum in the private sector.

It will be some time before any detailed analysis emerges from the CFO Global Business Outlook survey undertaken by North Carolina’s Duke University in 2013, but what appears to be a contradiction is obvious at first glance. The survey sample included 35 South African CFOs and while optimism about their country’s prospects was low (averaging 53 out of 100), optimism about their own company’s prospects was relatively high at 63 – although this too had dropped from a second-quarter measure of 70. Continue Reading →