What is it?
In the past all companies (PTY LTD) were subjected to audit. With the rewrite of the companies act (and it’s related amendments) a new method was brought in to determine whether a company needs it’s financials to be audited, reviewed or simply compiled.
How do you calculate it?
You simply add the points of the following four points for a company:
- 1 point for each employee or the average number of employees throughout the year.
- 1 point per million rand of third party liability. This is the money owed in terms of loans, debentures, and other financing.
- 1 point for each million rand of turnover during the financial year. If the turnover is half a million rand, score ½ point. For holding co’s this includes the turnover of Subsidiaries.
- 1 point for every individual who, at the end of the year, is known to have a direct or indirect beneficial interest in the company. This will include shareholders, beneficiaries of a trust where a trust is a shareholder and other stakeholders. ie. Shareholders directly or indirectly.
Where do you use it?
The public interest score is useful for two things:
- Determining whether your company/cc needs to be audited, reviewed or simply compiled.
- Determining whether your company/cc needs to submit AFS in XBRL format to the CIPC as part of the annual return or whether it can simply submit a FAS (Financial Accountability Supplement).
