NT: Proposed 2024/2025 MCS issued

NT: Proposed 2024/2025 MCS issued

• 09 October 2023
• Accounting
• South African Accounting Academy

The MCS update consists of 2 documents:

• Part A - Proposed amendments to existing Chapters of the MCS

  • Chapter 3: Financial Statement Presentation  

  • Chapter 13: Leases  

  • Chapter 14: Provisions And Contingents  

  • Chapter 16: Accounting By Principals And Agents

• Part B - Proposed new Chapter of the MCS

  • Chapter 21: The Effects of Changes in Foreign Exchange Rates

The equivalent Standard of GRAP has been used for the enhancement of these Chapters of the MCS.

Click here to download the 2-Part MCS:

• Part A – https://ag.treasury.gov.za/org/tss/Shared%20Documents/Modified%20Cash%20Standard%20Reporting/For%20financial%20year%20ending%2031%20March%202025/Authoritative%20Material/Part%20A%20Proposed%20amendments%20to%20MCS%20issued%20for%20comment.pdf 

• Part B – https://ag.treasury.gov.za/org/tss/Shared%20Documents/Modified%20Cash%20Standard%20Reporting/For%20financial%20year%20ending%2031%20March%202025/Authoritative%20Material/Part%20B%20Proposed%20new%20chapters%20to%20MCS%20issued%20for%20comment.pdf

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.

• Compilers of financial statements must be aware of the latest updates and proposals to the MCS.

Relevance to Your Clients:

• This applies to all departments that must compile their annual financial statements in accordance with the Modified Cash Standard.

• Compilers of financial statements must be aware of the latest updates and proposals to the MCS.

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