 "Career opportunities in accountancy continue to grow but the number of accountants always lags the demand for them, however, the role that accountants fulfil has changed significantly from the normal processing and reporting function" says Professor Rashied Small, Centre of Future Excellence (CoFE) Executive at the South African Institute of Professional Accountants (SAIPA).
This means anyone who becomes an accountant can be sure that there will always be a position available for them. And the more experience they gain, the greater the financial, lifestyle and career rewards they can expect. Michael Page 2021 report The Michael Page Salary Guide and Hiring Insights for 2021 reports that the most in-demand positions in the finance and accounting sector are commercial finance manager, tax professional, finance manager, head of finance and accountant. In addition, it notes the most sought-after skills in these roles. Advances in technology and digitalisation of business places the accountancy professionals at the centre of the value creation chain of businesses. The first is financial planning and analysis (FP&A) which is critical to companies analysing the market and their competitors and planning their finances accordingly. The second is change management because ongoing changes in companies due to COVID-19 require different methodologies and approaches to business than in the past. The third is good experience in technical accounting to ensure organisations adhere to sound financial processes and uses high quality financial and non-financial data to make business decisions that facilitate the business to be agile and adaptable to changing environments. Accountancy is a critical skill Another source, the South African government's Critical Skills List, highlights the country's need for accountants that is so desperate companies often have to source these roles internationally. They include general accountant, management accountant, tax professional, accountant in practice, financial accountant, forensic accountant, accounting officer and internal auditor. "However, companies need accountants with experience, so those candidates who are willing to work hard on gaining good experience can look forward to a promising future at the top of the accountancy profession. Companies are not only looking for accountants with strong technical knowledge, but they are now placing greater emphasis on the practical and applied skills that will support senior management," says Small. Future skills Accountancy is a constantly changing profession that evolves to meet the needs of the modern business world. Today's accountants find themselves in the midst of the Fourth Industrial Revolution (4IR) where many of their mundane, repetitive duties are being automated. However, this creates opportunities for accountancy professionals to use their skills and experience to add greater value to businesses by focussing on the interpretation and utilisation of the value embedded in the information. Therefore, another exciting aspect of accountancy is the need for professionals to continually reskill and upskill to stay relevant and valuable to the businesses that hire them. Thus, the perception that accounting is a boring profession no longer exist because as the changes in technology and businesses require the accountancy professional to become agile to remain relevant. "Future-ready professional accountants will master artificial intelligence, or AI, and data analytics to create value for their employers or clients by extracting predictive insights from data and helping business leaders use them effectively in decision-making. The future, sustainability and competitiveness of businesses will rely on the expertise of accountancy professionals to extract the value and insights from data using technology," says Small. To fill this sophisticated role, accountants will also need to expand their soft skills, like lateral thinking, integrated thinking, creativity, communication and presentation, teamwork, and business acumen. This implies that the accountancy professionals will use their technical knowledge together with technology to communicate the hidden secrets and value of data. "The accountant of the coming decade will not just be an employee or service provider but a major contributor to strategic planning and business expansion," says Small. SAIPA established its Centre of Future Excellence (CoFE) to research and understand what competencies accountants will need in the future and develop training programmes to prepare them today. Value, not numbers While numbers will always be part of the accountant's DNA, the days of number-crunching are gone. "Anyone who decides to become an accountant today is looking at a digitally-powered career, either as a profitable independent practice owner or high-earning corporate specialist," says Small. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants
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 South Africa could be sitting on a tax revenue gold mine. This is according to Ettiene Retief, Chairman of the National Tax Committee at the South African Institute of Professional Accountants (SAIPA).
Unfortunately, the government has so far failed to exploit a massive, untapped market for recreational cannabis consumption, both locally and globally. “Although I’m not an advocate of it, I cannot ignore the incredible growth this emerging industry is experiencing and the phenomenal potential it presents for taxation,” says Retief. International success Retief cites the success of Colorado in the USA. In 2012, its citizens voted to legalise recreational marijuana use for adults. Since then, the state has seen over USD 10 billion in total sales and, in the last six years, tax on the product has amounted to over USD 1.6 billion at the state level alone. Revenue resulted from a 2.9 percent sales tax on medical and recreational sales, and a 15 percent excise tax when the cannabis leaves the grower. This excludes tax on industrial hemp, which the state legalised in 2010. Witnessing the sustainability of this new tax revenue stream in both Colorado and Washington, four more states voted last year to legalise cannabis - New Jersey, South Dakota, Montana and Arizona. “We’re seeing a similar trend in other countries as governments realise that, with the right controls, recreational and medical cannabis can be exceptionally lucrative,” says Retief. Benefits for South Africa Apart from duties and VAT on the production and distribution of legalised cannabis, the so-called “sin tax” on cigarettes and alcohol could also apply to this similar product. And that’s just the beginning. “Let’s not forget the vast supply chain that would emerge, the corporate tax on those activities, including imports and exports, taxable income from the jobs created, and much more,” says Retief. For example, production and retail could extend into tourism – say in the form of “dagga safaris” that would bring much needed relief to the hospitality industry – or by-products like industrial hemp and compost. Retief notes that South Africa is already a major cannabis producer with a thriving illicit market. “Legalising the sector will reduce crime, improve quality and safety, promote safer consumption, and regulate production while securing tax revenues,” he asserts. A gradual adoption The biggest constraints to legalising marijuana for recreational use are traditional assumptions about the dangers it poses to society, its reputation as a gateway drug, and protective laws. Yet, almost a decade later, the population of Colorado has not been reduced to mindless zombies or heroin addicts. Of course, this does not eliminate the need for careful planning, the development of sensible regulation, education, and a prudent roll-out by the government. A major consideration must be the acceptable legal age of users and how to protect minors from exposure. Health and safety standards and supply chain controls also need to be determined. Amendments to laws to address the risks, such as driving vehicles and being under the influence at work. Lawmakers could at first utilise Special Economic Zones, not only to restrict manufacturing and sales to isolated areas, but also as unique tourist spots that would attract both overseas and local guests. This proof-of-concept approach would allow for gradual change instead of abrupt adoption. In any case, the government needs to start consulting with stakeholders now to determine the best way forward. “South Africa is ideally positioned to take advantage of this tax revenue source and our cash-strapped state cannot afford to dismiss offhand such a sure bet,” concludes Retief. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants  “Ethics is here to stay!” says Shahied Daniels, Chief Executive of the South African Institute of Professional Accountants. “Any perception that the focus on ethics is just a passing trend is a misnomer.” This statement, along with Daniels’ other views on ethics in the accountancy professions, is included in a video the Institute released in observance of Global Ethics Day 2021. “Ethics is the answer to the ills of corruption, greed and self-interest,” says Daniels. Daniels says that ethics is the only way that trust can be restored in the accountancy profession after various massive corporate scandals. “The five fundamental principles of ethics in the accountancy profession are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.” Furthermore, independence also plays a central role in ethics, as some of the recent above-mentioned scandals were due to a lack thereof. For its own code of conduct, SAIPA has adopted the International Ethics Standards Board for Accountants (IESBA) Code of Ethics published by the international Federation of Accountants (IFAC). In addition, SAIPA has also introduced an Ethics Pledge that all members need to sign on annual basis, as well as compulsory Ethics Continued Professional Development (CPD) points that all members need to obtain in order to be considered in good standing with SAIPA. “The blame for unethical conduct by its members often falls on the shoulders of professional bodies,” says Daniels. “Setting the expected standard for conduct and reminding members about the importance of ethical behaviour is however just one part of the continuum of professional ethics.” “The temptations in business are sometimes so big that even the most honest people are faced with ethical dilemmas. It is therefore imperative that each individual professional accept personal responsibility by taking the ethical pledge and upholding the code of conduct they have agreed to with their professional body.” Watch this video interview with Daniels during which he discusses how ethics simply is no passing trend: https://www.wevideo.com/view/2409311971 ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants  ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional AccountantsThree non-profit organisations (NPOs) located deep in rural KwaZulu-Natal have been identified to receive assistance from the South African Institute of Professional Accountants (SAIPA) to continue serving their communities, this after being severely impacted by the July-unrest that has left a massive trail of destruction. SAIPA has donated appliances and food supplies worth R120,000 to the Mgijimi Soup Kitchen in Harding, Women Living for a Cause and the Mpumelelo Community Project, both in Port Shepstone. SAIPA executive Faith Ngwenya says the management team decided to reach out and support people who were affected by social and political unrest in KwaZulu-Natal and parts of Gauteng. Positive Trajectory The institute approached the Department of Social Development to identify three NPOs who would benefit immediately by a donation in order to get going again. The provincial Department of Social Development said indigent communities, already living below the poverty line, are in desperate need of support as all role-players are resuscitating the delivery of social services and placing the local economy on a positive trajectory. Ngwenya says the greatest need expressed by the NPOs was to have their own equipment and crockery to be able to serve their communities better. In most instances they had no stoves, freezers, microwaves or any crockery and had been renting or borrowing to get by. “It has become a major issue just to be able to prepare the food from the groceries that is donated to them,” says Ngwenya. During a handover ceremony attended by Senior management of the Department of Social Development this past weekend, the first of the three beneficiaries, Mgijimi Soup Kitchen, received a fridge, freezer, microwave, stove, pots, plates, cups, kettles and an urn as well as grocery supplies to last for several weeks. The Beneficiaries The Mgijimi Soup Kitchen in deep rural Harding on the South Coast, supports the elderly who are left in charge of rearing children, supplies them with regular meals and check on them on a regular basis. Women Living for a Cause serve the community of Port Shepstone and all surrounding areas. Their aim is to help uplift their communities by assisting and empowering them through development. Their support programmes are aimed at members of society with chronic illnesses such as HIV and AIDS, abandoned children and other disadvantaged members of society. The Mpumelelo Community is dedicated to empowering and providing for people living with and affected by HIV/AIDS. Ngwenya notes that many of the organisations are entirely dependent on sponsorships. These sponsorships were lost after the destruction of commercial and social infrastructure in the province. Sustainable Service “It was so heart-warming to hear from the recipients of the SAIPA donations – many who were in tears – said that they now had something tangible that was theirs. This will ensure the sustainability of their efforts to care for their communities”. Ngwenya says although the donation was a once-off, SAIPA remains committed to assist the province who is still recovering from the looting and destruction in the second half of July. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African Institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants  The South African Institute of Professional Accountants (SAIPA) intends to fundamentally
re-imagine the way the accountancy profession is perceived, developed and utilised. This was announced at an online media briefing presented by Shahied Daniels, the Institute’s Chief Executive, on Thursday, 3 September. “We have begun thinking differently about what accountancy is and needs to be in a world marked by advanced technological capabilities and extreme socio-economic conditions,” he said. Daniels outlined how SAIPA will approach these requirements. Ethics Daniels said that in the 18 years since the Arthur Andersen and Enron incident, and in the wake of other major accounting scandals since, the profession has come under increasing public scrutiny. Accountants are expected to be ethical flag bearers, by providing quality information used to make business decisions which impacts the socio-economic well-being of people, and SAIPA’s objective is to regain the public trust. “Adding additional regulations to existing regulations has proven ineffective, because regulations seldom change behaviour which drives ethical and professional conduct” he said. Rather, it is critical that ethics is continuously reinforced through regular training, awareness and professional bodies holding their members accountable. SAIPA has therefore made ethics a compulsory part of its continuous professional development (CPD) programmes, aligning with SAQA’s current professional accreditation criteria. In addition, SAIPA members must now confirm their commitment to ethical conduct by signing an annual pledge. 4IR SAIPA acknowledges that the accountancy profession is being radically re-imagined by the Fourth Industrial Revolution and plans to prepare its members accordingly. “SAIPA will ensure its members rapidly transition from merely performing mechanical and repetitive tasks to become value creators and to be seen as trusted strategic business advisors by their clients and employers,” said Daniels SAIPA’s premier designation, Professional Accountant (SA), will become a fusion of human competencies and digital capabilities to facilitate effective and ethical decision-making, he said. It would also expand into auxiliary services that extract greater value from accounting data. This means they must acquire new skillsets, such as digital proficiency, data literacy, critical thinking, and strategic assessment of business development initiatives. SAIPA’s response To improve secondary and tertiary accountancy education, SAIPA is developing an educational roadmap and curriculum that embraces data science, data analytics and digital proficiency as essential competencies for the profession. SAIPA has also grown its National Accounting and Maths Olympiad competition to encourage school leavers to shift their focus from memorisation to cognitive development. Further, the Institute has established a Centre of Future Excellence (CoFE) to ensure its competency framework aligns with an increasingly digital world, both in and beyond 4IR. Small-to-medium accounting practices often build value by collaborating with non-accountants. To assist them, SAIPA has established the Centre of Business Advisory (CoBA) where non-accountants who meet its professional requirements can become affiliate members. According to Daniels, the Institute’s long-running Project Achiever programme, which prepares candidates for its Professional Evaluation, and is funded by the Finance and Accounting Services Sector Education and Training Authority (Fasset), has received much attention for its lasting effects on broader proficiencies and soft skills. Conclusion Daniels said SAIPA’s initiatives are critical to ensuring the profession is prepared for a digital-driven future. “They will also enable it to evolve its value proposition and service offerings for demands in business and society by creating value,” he said. The date of the briefing was significant in that it marks the 14th anniversary of the Institute’s historic name change to depict the role SAIPA has been fulfilling in the profession over the past 38 years. Authored by: Ettiene Retief, Chairman of the National Tax and SARS Committee at the South African Institute of Professional Accountants
The decision by the South African Revenue Service (SARS) to re-establish its Large Business Centre (LBC) will undoubtedly ease the administrative and compliance burden of big business and high net-worth individuals. It will also enhance tax collections that have fallen sharply since the centre was dismantled in 2015 following major restructuring under the reign of suspended commissioner Tom Moyane. Under the restructured business model, currently the focus of the Nugent commission of inquiry into governance and administration at the tax agency, the LBC was systematically dismantled to “eliminate duplication and improve efficiencies”, SARS said at the time. The impact of the dismantled LBC The tax affairs of large corporates and high net-worth individuals are highly complex. Their risk profiles differ vastly from ordinary taxpayers. The potential loss to the fiscus is substantial if they are not managed properly. Before the LBC was dismantled it was responsible for the collection of more than 30% of total tax collections. This included individual income tax, corporate income tax, Value Added Tax, employee taxes, dividends tax, donations tax and royalties tax. The dismantling of the centre led to a decline in the ability of SARS to collect what was due to the fiscus. Concerns were also raised about a decline in compliance. The “one-stop-shop” for large businesses was gone, leaving multi-million-rand enterprises in the same position as ordinary taxpayers. This had a major impact on the way they had to deal with complex issues, the manner and time in which queries was solved, audits conducted, and disputes resolved. Compliance, collections and enforcement When the LBC was established in 2004 the aim was to encourage compliance, to ensure responsible enforcement and to offer specialised and sector specific expertise to large businesses. Sector specific expertise was developed in the most crucial sectors in the economy, including financial services, construction, mining and agriculture. The scope of the LBC covered listed and unlisted companies, parastatals and high net worth individuals. Expertise in highly complex tax legislation, notably transfer pricing, was developed to ensure that revenue is taxed where it is generated. The expertise in the LBC was not only in terms of the interpretation and implementation of tax legislation, but also included expert knowledge of the businesses in the different economic sectors. This assisted hugely with greater administrative knowledge, better risk-profiling in terms of audits, and better audit and dispute outcomes. The LBC ensured that there was one dedicated relationship manager which dealt with clients within specific sectors. This meant that a company raising a specific issue or query with SARS were dealing with the same individuals, who not only understood the essence of the issue, but was able to give feedback to how the matter was being dealt with. The dismantling led to much of the expertise being lost to SARS. An exodus of expertise followed the restructuring process, which was done by the consultancy firm Bain at a cost of more than R160m. Pivotal role of the LBC The announcement by Acting commissioner Mark Kingon to re-instate the LBC, as well as the Illicit Economy Team, must be welcomed. The acting commissioner said in his statement, announcing the move, that it was based on the “pivotal role” these units play in its service to large corporate taxpayers, and in fighting illicit trade in the country. SAIPA supports the move to re-establish the LBC. There is a deep understanding of the time and effort it will take to rebuild the capacity that existed before the dismantling of the units. However, this will certain increase better administrative outcomes, faster turnaround times and better compliance, audit results and dispute resolution. Although SARS has not put a timeline on when the units will be reinstituted, the fact that dedicated teams have already started the process, is encouraging. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants The Financial Times recently reported that the Bank of England, UK’s central banking authority, had launched a probe to evaluate if KPMG worldwide will survive the fallout from its South African division’s troubles.
“Such high profile incidents are not indicative of the overall state of accounting,” insists Ragiema Thokan-Mahomed, Legal, Ethics and Compliance Executive at the South African Institute of Professional Accountants (SAIPA). “We can’t let a few deviants destroy a profession that is essentially the world’s economic foundation.” Accounting integrity stronger than ever Agreeing with SAIPA’s stance, a 2017 paper from the International Federation of Accountants (IFAC), conducted independently by the Centre for Economics and Business Research (CEBR), concluded that accountants play a central role in fighting corruption. According to Thokan-Mahomed, most accountants have a conscience and adhere to prescribed accounting standards. In fact, the latest International Ethics Standards Board for Accountants (IESBA) handbook obliges practitioners to take action when observing or even suspecting a non-compliance with laws and regulations. “Like every IFAC member, SAIPA also has a robust investigations and disciplinary structure in place to deal with offenders,” she adds. “However, we can’t monitor the integrity of millions of companies and transactions, so we need eyes on the ground. It’s time for all South Africans to get involved.” The role of professional accountants In the past, accountants’ response to NOCLAR (Non-Compliance with Laws and Regulations) was limited by client confidentiality but the introduction of sections 225 and 365 of the IESBA code removes this barrier. Now, Professional Accountants (SA) must be conscious of their role when confronted with a NOCLAR and promptly follow the IESBA procedure when identifying a means to remedy the contravention. Where a matter is not resolved effectively, they are required to report it to an appropriate authority. Accountants must further establish whistleblowing policies and procedures in their organisation for this purpose. “We want our members to be at the forefront of promoting good practice, so we encourage them to ensure that these systems are in place,” says Thokan-Mahomed. Investigation and disciplinary process Anyone can report NOCLAR to SAIPA’s legal department directly, by email or by following the complaints procedure on its website. However, the legal team require adequate information to do their job effectively. If the complaint has merit, an investigation will ensue and the SAIPA member may be visited by an assessor collate the relevant documents and inspect them for compliance with accounting standards. When a whistleblower desires anonymity, SAIPA will take on the role of the complainant. For lesser offenses, SAIPA’s Investigations Committee can levy a fine against the transgressor. However, where gross misconduct is apparent, the matter is passed to SAIPA’s Disciplinary Committee. If convicted, a member could be struck from the Institute’s membership role and their dismissal is publicised to protect the public and SAIPA’s reputation. SAIPA is currently negotiating agreements with other accounting institutes to prevent disgraced members from joining another body in South Africa or participating countries. Thokan-Mahomed says observers may become frustrated with the length of the process but notes that dues process must be followed. “Every South African has the right to justice, so evidence must be carefully cross examined and the defence, if any, must be heard. It’s time-consuming but that thoroughness ensures that justice is done.” Taking a stand SAIPA calls on all South Africans to join its ongoing battle against NOCLAR. “We have the systems in place to fight corruption,” concludes Thokan-Mahomed. “But we need information from our members and the man in the street. Together, we can win.” Sources:
MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants With the annual tax filing season well underway, the South African Revenue Service (SARS) seems to be pulling all the stops to get back on track and to collect taxes in an efficient and effective way, says Ettiene Retief, Chairman of the National Tax and SARS Committee at SAIPA.
The near disastrous changes to the operating model of the tax authority under the management of suspended commissioner Tom Moyane has led to a decline in tax morality and revenue collections. Acting commissioner Mark Kingon has however vowed to tweak things to collect the taxes government needs. Tweaking the model Retief says structural changes made under Moyane include the dismantling of the Large Business Centre (LBC) which focussed on large and multinational companies and high net worth individuals. These two categories of taxpayers are responsible for a large chunk of the tax revenue collected by SARS. Their tax affairs are generally complex and hold risks for the fiscus if it is not managed properly. The reasoning behind the dismantling of the LBC was the unnecessary duplication of resources. “The LBC has a clear role to play in operational efficiency and effectiveness,” says Retief. Transfer pricing practices in cross border transactions offer opportunities for base erosion and profit shifting. “Surely a transfer pricing unit that can focus at that level is a far more efficient use of resources and the management of tax risks,” says Retief. “Any large business will tell you how frustrating the process has become when dealing with complex matters with officials who do not have the experience to deal with it properly.” Retief says SAIPA fully supports the refocus on the LBC and the re-establishment of certain functionalities which will allow SARS to collect revenue in a far more efficient and effective way. The tax affairs of rich South Africans equally require specialised skills since the risks are vastly different to that of an average taxpayer. They generally have complex trust structures, deductions for venture capital company investments, loans and beneficial ownerships that requires a different set of auditing skills. Auditing capabilities Retief says there is sufficient causal evidence that there has been a deterioration of auditing efficiency. The audit of an average taxpayer is not supposed to take more than four months. “There has to be a balance between an efficient auditing process and happy taxpayers who are not unduly frustrated or disadvantaged.” Retief says SARS will have to restore the faith taxpayers had in the tax authority and how it collects taxes. Government needs to gain taxpayer’s trust in how it is spending their money. There must be a change in the ethos of the business. Taxpayers who are complaint should be respected. However, painting everyone with the same non-compliant brush serves nobody. Shorter time to file SARS has proposed a shorter filing season for non-provisional taxpayers to enable it sufficient time to complete its verification and audit processes. Filing season will close at the end of October for taxpayers who are using the electronic filing platform offered by SARS. Provisional taxpayers still have until the end of January. Retief supports the shorter filing season, saying it will lead to a natural increase in compliance and collections. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants Author: Professor Rashied Small, Executive: Education and Training at SAIPA
The International Federation of Accountants (IFAC) recently released its 2017 Global Status Report which measures the progress of its members in adopting its international accounting standards. IFAC found that, although member organisations are committed to meeting their SMO’s (statement of member obligations) for each standard, the process is complex and progress is rarely quick. In fact, full implementation may take years. As the report notes, professional organisations typically share responsibility for adoption with external stakeholders like government and educational institutions. Their ability to win the cooperation of these parties is therefore vital in achieving their end. Why South Africa leads It is encouraging that South Africa has been ranked number one in implementing IFAC standards over the previous five years, except for 2017. As a member of the South African Institute of Professional Accountants (SAIPA), I can attest that the country’s status as an early adopter is due in no small part to the organisation’s focus on relationship building and collaboration. The same is true of any of the nation’s various professional accounting organisations (PAO’s). Education Adoption of IFAC standards starts in the country’s education system. Courses for accounting must meet government regulations and address the needs of industry. It is therefore appropriate that SAIPA, like most professional bodies, sits on the advisory committees at South Africa’s various universities. These panels review current curricula to evaluate if they are still relevant to industry requirements and incorporate international standards. The Institute also consults with other tertiary education providers. In addition, SAIPA works with the South African Qualifications Authority (SAQA), the Council of Higher Education and the Quality Council for Trades and Occupations. Government Government plays a key role in the adoption of IFAC standards and SAIPA’s relationship with them is extremely good and positive. The Institute has worked hard to win the right to positively influence regulation by being involved in and adding value to the legislation development process. The Institute provides representation to government in parliament on matters like tax and the Companies Act and is a member of the recognised controlling body (RCB) with SARS. Government is also entrusting professional bodies with more responsibility to ensure that regulations and standards are embraced by their members . Professional bodies A country’s regulators can greatly accelerate adoption of IFAC standards by working together towards this goal. Fortunately, the many professional bodies in South Africa maintain a good working relationship with one another. This has contributed to our success. For standards that govern the field, SAIPA is represented with each stakeholder to ensure correct interpretation and implementation of the standards. These include the Financial Reporting Technical Committee, Accounting Standards Board and Ethics Standards Board. Other countries If some of South Africa’s trade partners do not fully implement IFAC standards, this can reduce the benefits of our own adoption. To address the issue, SAIPA joined several African accounting bodies, most notably the Pan African Federation of Accountants (PAFA) and the Southern African Community Institutes of Accountant (SACIA) a sub-structure of PAFA that promotes collaboration and co-operation amongst regional PAO’s. This gives us the opportunity to help ensure standards are fully adopted across the continent. For unaffiliated countries, SAIPA has signed memorandums of understanding (MOU) with several who wish to adopt the standards but lack the guidance or resources to do so. Currently, we offer our services to seven African professional bodies to assist them with adoption and developing a curriculum of minimum competencies. Non-regulated accountants All auditors in South Africa must belong to a professional body, but not all practicing accountants. This is of concern because non-regulated practitioners are under no material obligation to adhere to IFAC standards. Through the Forum of Accounting Bodies, SAIPA is working with Treasury on new regulations to compel all accountants to join a professional body. This will give their employer or clients the assurance that they are fully compliant, being bound by our code of conduct, investigation and disciplinary processes, and continuous professional development programmes. Treasury should begin rolling out a new regulatory framework by 2020. Setting the pace In adopting IFAC’s international standards, South Africa has become a yardstick for the rest of the world. International bodies are investigating our implementation frameworks, educational curricula and professional programmes as blueprints for their own endeavours. While collaboration is the key to making adoption happen, the secret ingredient is the hard work of relationship building that makes close cooperation possible. ENDS MEDIA CONTACT: Idéle Prinsloo, 082 573 9219, idele@thatpoint.co.za, www.atthatpoint.co.za For more information on SAIPA please visit: Website: www.saipa.co.za Twitter: @SAIPAcomms LinkedIn: South African institute of Professional Accountants Company Facebook: South African Institute of Professional Accountants |
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