Updated FAQs on Modified Cash Statement (MCS) for 2023/2024

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Updated FAQs on Modified Cash Statement (MCS) for 2023/2024

• 24 April 2024
• Financial Reporting
• South African Accounting Academy

The FAQs are based on queries commonly received from the stakeholders involved with preparation and finalisation of financial statements in accordance with the Modified Cash Standard (MCS).

These FAQs should be considered for preparation and finalisation of the Annual Financial Statements for the 2023/24 financial year and reporting periods thereafter.

There are 20 FAQs in total, grouped in the following categories:

• Chapter 13: Leases (FAQ 13.1 to 13.18)
• Chapter 21: AFS Template and AFS Specimen (FAQ 21.1 and 21.2)

Click here to download the Updated FAQ document:

https://ag.treasury.gov.za/org/tss/Shared%20Documents/Modified%20Cash%20Standard%20Reporting/For%20financial%20year%20ending%2031%20March%202024/Application%20Guidance/FAQs%20MCS%20AFS%202023_2024%20Apr%202024.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.
• This FAQ document provides some guidance on the considerations for Leases, as well as preparation and finalisation of the Annual Financial Statements for the 2023/24 financial year and reporting periods thereafter.

Relevance to Your clients:

• Applies to all departments that must compile their annual financial statements in accordance with the Modified Cash Standard.
• All departments need to be aware of the clarity/guidance that is provided in the FAQs published by National Treasury.

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