SOUTH AFRICA: APB APPROVES TWO AC 500 INTERPRETATIONS AS STATEMENTS OF GAAP - July 2009

ACCOUNTING

ACCOUNTING

Accountancy SA, Jul 2009

APB APPROVES TWO AC 500 INTERPRETATIONS AS STATEMENTS OFGAAP

At its meeting held on 18 March 2009, the Accounting Practices Board
(APB) approved the following South African Interpretations as
Statements of Generally Accepted Accounting Practice (GAAP),

AC 504 – IAS 19(AC 116) – The Limit on a Defined Benefit Asset,
Minimum Funding Requirements and their interaction in the South African
Pension Fund Environment – to read more please visit
www.accountancysa.org.za

Revised AC 503 – Accounting for Black Economic Empowerment (BEE) Transactions

AC 503, which was initially issued in May 2006, has been revised to
take into account the recent amendments to IFRS 2(AC 139) – Share-based
Payments, which are effective for annual periods beginning on or after
1 January 2009. The amendments to IFRS 2(AC 139) amended the definition
of vesting conditions and provided guidance on the accounting for
non-vesting conditions. Vesting conditions can either be service or
performance conditions. The definition of a service condition has
remained unchanged. However, the definition of a performance condition
has been amended to include a service requirement, in addition to
performance targets. Therefore, conditions that do not include a
service requirement are considered non-vesting conditions and the
related goods or services are recognised immediately. The revisions to
AC 503 are also effective for annual periods beginning on or after 1
January 2009.

Both AC 504 and the revised AC 503 can be downloaded from the SAICA on-line handbook.

As result, the following exposure drafts have been removed;

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