National Treasury: Modified Cash Standard – Accounting Manuals for Departments

National Treasury: Modified Cash Standard – Accounting Manuals for Departments

• 02 August 2024
• Financial Reporting
• South African Accounting Academy

The following manuals are now available for comment:

• 04 Accounting Policies Estimates and Error
• 09 General Departmental Assets and Liabilities
• 11 Capital Assets
• 13 Leases
• 14 Provisions and Contingents
• 19 Transfer of functions

Click here to download the Manuals.

Relevance to Auditors, Independent Reviewers & Accountants:

• The PFMA is yet another piece of legislation that your relevant national and provincial departmental clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor and independent reviewer, you need to consider and assess compliance with the departments that use the MCS, as required by the PFMA, including consideration of the implications of the recent flooding on financial reporting.
• These accounting manuals provide guidance when applying the MCSs to present financial information.

Relevance to Your Clients:

• A department must compile their annual financial statements in accordance with the Modified Cash Standard.
• They need to be aware of these accounting manuals when applying the MCSs to present financial information.

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