Annual financial statements
As a general rule, companies must designate a licensed auditor to check their annual financial statements. To know how a company is performing, it is essential to draw up a periodic statement of income and expenses.
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Distribution of earnings and carryover of loss
Losses realized by a company may be carried over to the following fiscal year. They may be offset by profits over a period of seven years.
Profit and loss statement: Calculating a company’s results
In order to analyze the performance of an SME and thus be able to compare it with other companies or with previous years, it is important to establish an account of its expenses and income.
Model company balance sheet: drawing up and reading a balance sheet
A balance sheet distinguishes between wealth and debts, and is drawn up differently depending on the company type. Here are some examples.
Instructions for performing an evaluation: How to calculate the value of assets?
Evaluating a company’s assets must be performed rigorously. Public limited companies (SA) should follow the lowest-value method.
Use of undisclosed reserves and provisions
Undisclosed reserves and provisions allow companies extra support by offering security for when times get tough.
Dates for closing accounts
The dates for closing accounts normally correspond to the end of the calendar year. A company may, however, choose a different date to suit its requirements.
Auditor and types of audit
As a general rule, companies must designate a licensed auditor to check their annual financial statements.