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SAICA: Exposure Draft on Headline Earnings Circular 2026
- 14 August 2026
- Miscellaneous
- South African Accounting Academy
Summary:
The South African Institute of Chartered Accountants (SAICA) has issued proposed Circular x/2026 – Headline Earnings, at the request of the JSE Limited (JSE).
Article:
This Exposure Draft proposes amendments to update the detailed requirements contained Section B, Section E and paragraphs 12-13, specifically to align the Circular with the presentation and disclosure requirements introduced by IFRS 18.
This proposed Circular 1/2026 – Headline Earnings, which will supersede the previous Circular 1/2023, and is effective in the financial periods (interim and/or annual periods) in which an entity first applies IFRS 18. The new rules shall be applied consistently with the transition approach adopted for the amended or new IFRS Accounting Standards and IFRIC Interpretations issued.
Circular 1/2023 will continue to apply to entities for reporting periods before the effective date of IFRS 18 – Presentation and Disclosure in Financial Statements.
Deadline date for comments is 13 October 2026.
Download the following related documents:
- Invitation to comment Exposure Draft Proposed Circular 1 2026 v1 (2 pages) https://saicawebprstorage.blob.core.windows.net/uploads/resources/Invitation-to-comment-Exposure-Draft-Proposed-Circular-1-2026-v1.pdf
- Basis For Conclusions Headline Earnings Circular (16 pages) https://saicawebprstorage.blob.core.windows.net/uploads/resources/Basis-For-Conclusions-Headline-Earnings-Circular.pdf
The requirement to disclose headline earnings has been a reporting requirement for companies listed on the JSE Limited (JSE) since 2000.
The JSE Listings Requirements require the calculation of headline earnings and disclosure of a detailed reconciliation of headline earnings to the earnings numbers used in the calculation of basic earnings per share in accordance with the requirements of IAS 33 – Earnings per Share.
Disclosure of headline earnings is not a requirement of International Financial Reporting Standards (IFRS).
Click here to download the 31-page Exposure Draft Circular 1/2026:
Relevance to Auditors, Independent Reviewers & Accountants:
- JSE Reporting Requirements is legislation/rules/regulations that your 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.
- Accountants should be able to calculate and disclose Headline Earnings accordingly.
- As an auditor, independent reviewer and accountant, you need to be aware of the latest updates/guides/publications issued by relevant professional bodies and regulators.
Relevance to Your clients:
- Entities listed on the JSE must be aware of and comply with the reporting requirements.
- Accountants should be able to calculate and disclose Headline Earnings accordingly.