The Function Of A Company’s Annual Financial Statements In The B-BBEE Verification Process
We, At Premier, Are Often Asked Why We Request Our Clients’ Annual Audited Financial Statements (AFS) For A B-BBEE Verification.
The Reason For The Request Is Because The Annual Audited Financial Statements Are Used To Calculate The Various Targets For Skills Development, Preferential Procurement, Enterprise And Supplier Development And Socio-Economic Development.
In Addition, Under Preferential Procurement, Figures From The AFS Are Used To Calculate The “TMPS” (Total Measured Procurement Spend). It Is Important To Note That Your Skills Spend, Procurement Spend, Donations To ED And SED Must Be For The Same 12-Month Period As The AFS Being Used For Verification Purposes.
SANAS States That The Most Recent Annual Audited Financial Statements Must Be Used And That They May Not Be Older Than 12 Months At The Time Of Verification.
If The Company’s AFS Have Not Yet Been Signed Off, Management Accounts (MAs) May Be Used. In This Instance, Additional Documents Are Required At The Time Of Submission.
The MAs Must Be For The Same 12-Months As The Financial Period And No Floating Management Accounts Will Be Accepted.
Should You Have Any Questions Regarding The Use Of Annual Audited Financial Statements/Management Accounts Please Contact Us.
