South Africa brought their financial reporting in line with the majority of the world on 1 January 2005. They are not regulated and must comply with the requirements of the International Financial Reporting Standards.
South Africa realised that to trade and do business with the rest of the world, at the same level as other countries, it needed to be regulated by the same International Financial Reporting Standards. The International Financial Reporting Standards realises that all countries need to report in the same way so that their systems and financial flow can be regulated and then contrasted in the same way. Using different reporting standards than other major economic countries would disadvantage them as they would not be seen as a transparent country in terms of financial regulation.
Every company that is on the Johannesburg Stock Exchange must comply with the requirements of the International Financial Reporting Standards. This is the same for stock exchanges across the world, in all of the other countries that are regulated by the International Financial Reporting Standards.
The International Financial Reporting Standards ensures high quality of financial regulation worldwide and realises that smaller, growing, less economically developing countries must also be regulated so that they can continue to grow.
They believe that they can maintain these standards by doing four main things; having a monitoring board, the ability to review their constitution every five years, mandatory public consultation and the fact that all meetings are either shown online or the notes are documented for all to see. They believe that being a clear, transparent organisation is the key to their success. Making the process of regulation open gives them the trust from different financial bodies worldwide.
South Africa realised that to trade and do business with the rest of the world, at the same level as other countries, it needed to be regulated by the same International Financial Reporting Standards. The International Financial Reporting Standards realises that all countries need to report in the same way so that their systems and financial flow can be regulated and then contrasted in the same way. Using different reporting standards than other major economic countries would disadvantage them as they would not be seen as a transparent country in terms of financial regulation.
Every company that is on the Johannesburg Stock Exchange must comply with the requirements of the International Financial Reporting Standards. This is the same for stock exchanges across the world, in all of the other countries that are regulated by the International Financial Reporting Standards.
The International Financial Reporting Standards ensures high quality of financial regulation worldwide and realises that smaller, growing, less economically developing countries must also be regulated so that they can continue to grow.
They believe that they can maintain these standards by doing four main things; having a monitoring board, the ability to review their constitution every five years, mandatory public consultation and the fact that all meetings are either shown online or the notes are documented for all to see. They believe that being a clear, transparent organisation is the key to their success. Making the process of regulation open gives them the trust from different financial bodies worldwide.
