A company’s financial statement is important; let us assist
There are four main types of financial statements; these include:
- Balance sheets
Balance sheets provide in-depth information about your company’s current financial status. It will provide information on your company’s assets, liabilities and shareholders’ equity. The balance sheet gives a clear indication of a company’s financial position at the end of a reporting period.
- Income statements
Income statements show how much revenue a company generated within a specific timeframe. The statement also indicates costs and expenses associated with every income. A company’s income statement will therefore show its gross income, and then its income after tax and other deductions, to determine whether you made a profit or not.
- Cash flow statements
Cash flow statements are important because a company should always have sufficient cash on hand to pay its expenses. These statements will illustrate your company’s incoming and outgoing cash transactions.
- Statements showing shareholders’ equity
These statements aim to indicate any changes in the interests of the business’ shareholders within a specified time.
Is your company required to submit a financial statement?
- To minimise the administrative burden on companies when having to submit financial information for regulatory compliance
- To reduce duplication and inconsistencies in submitted business information
- To achieve compliance and to provide accurate business information to investors with improved transparency
- If your company’s Memorandum of Incorporation (MOI) prescribes Audited Financials – an AFS is in the new XBRL format will be required
- For Private or Personal Liability Companies
- If the business holds assets in fiduciary capacity for unrelated persons, and assets exceed R5 million over the Financial Year – AFS in the new XBRL format is required; or
- If a Public Interest Score is 100 or more and Financial Statements are compiled internally – AFS in the new XBRL format is required; or
- If the business is not managed by owners and Public Interest Score is below 100 and Financial Statements are compiled internally – Only Independent Reviewed Financials may be required, which means that the submission in new XBRL format is not mandatory; or
- If your business’ Public Interest Score is over 349 and your Financial Statements are compiled by an independent party – AFS in the new XBRL format is required; or
- Your business is not managed by owners and the Public Interest Score is between 100 and 349 and Financials are compiled by an independent party – Only Independent Reviewed Financials may be required and submission in new XBRL format will not be mandatory.