Understanding a company’s public interest score and its impact

Written by:

Anita Wahl

Anita Wahl

Secretarial Product Manager at GreatSoft
Public Interest Score - CIPC

Calculate your Public Interest Score

While a number of us still refer to it as the “new” Companies Act, the Companies Act 2008 (“the Act”) has been in force now for over eight years.  One of the requirements it introduced has become more of a talking point in the last year however with the CIPC now requiring all audited financial statements to be submitted via XBRL (Extensible Business Reporting Language).  The requirement of the Act to which I am referring is described in Regulation 26(2) and states that every company must calculate its Public Interest Score (“PI Score”) at the end of each financial year.

The PI Score approach brings South Africa in line with similar practices in other countries and takes into account various matters, such as employees, shareholders, liability and turnover.  When calculating a company’s PI Score, this needs to be done for the company individually and not at a consolidated level.

Public Interest Score Categories

A company’s PI Score will determine if its annual financial statements must be audited or independently reviewed, what financial reporting standards need to be adopted and whether the company must appoint a social and ethics committee.  The table below sets out the various implications of different score categories:

PI SCORE CATEGORY AFS COMPILED AUDIT / INDEPENDENT REVIEW (IR) FINANCIAL REPORTING STANDARD
All Companies – not owner managed:

PI Score < 100

 

Internally

Independently

 

IR

IR

 

No prescribed framework

IFRS or IFRS for SMEs

All Companies – owner managed (including CCs):

PI Score < 100

 

Internally

Independently

 

No Audit

No Audit

 

No prescribed framework

IFRS or IFRS for SMEs

All Companies – not owner managed:

PI Score 100 – 349

 

Internally

Independently

 

Audit

IR

 

IFRS or IFRS for SMEs

IFRS or IFRS for SMEs

All Companies – owner managed (including CCs):

PI Score 100 – 349

 

Internally

Independently

 

Audit

No Audit

 

IFRS or IFRS for SMEs

IFRS or IFRS for SMEs

All Companies (including CCs):

PI Score > 350

 

N/A

 

Audit

 

IFRS or IFRS for SMEs

Company holding fiduciary assets > R5million

Company with MOI requiring an audit

Public Company – Listed

Public Company – Not Listed

State-Owned Company

Non-Profit Company (state-owned / statutory / regulatory function)

N/A

N/A

N/A

N/A

N/A

N/A

Audit

Audit

Audit

Audit

Audit

Audit

IFRS

IFRS or IFRS for SMEs

IFRS

IFRS or IFRS for SMEs

IFRS

IFRS

 All Companies (including CCs):

PI Score > 500

 

Social and Ethics Committee

This means that Small and Medium Enterprises (“SMEs”) could potentially benefit from great cost savings as a result of not being required to have their annual financial statements audited.  They could simply submit a Financial Accountability Supplement to the CIPC.

GreatSoft has a quick and easy-to-use Public Interest Score Calculator to help you calculate and report your Public Interest Scores.  This calculator is linked to the statutory registers stored on GreatSoft Secretarial as well as our Annual Return tracking system, making it easier to see which annual financial statements have been audited and therefore need to be submitted to the CIPC via XBRL.

To find out more or to try out our calculator just simply make contact

Book a session with us

Find out how to protect your clients' data, avoid losing confidential information, harness powerful marketing tools and increase customer retention

Book a session with us

Find out how to protect your clients' data, avoid losing confidential information, harness powerful marketing tools and increase customer retention

Share this post!

Subscribe!