A GLOBAL survey of 2800 businesses conducted by Grant Thornton found that only 40% of South African businesses were aware of coming global changes in accounting standards relating to the way they recognised and reported revenue.
The report was released yesterday. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) recently developed a joint proposal for a converged revenue recognition standard.
But less than one third or 32% of SA businesses believe existing accounting standards on revenue recognition need to be improved or replaced, despite a decade of documented problems with corporate revenue recognition.
"The majority of local businesses are not educated about these very important changes. Those that are, do not believe they are necessary. And yet, these changes will most likely have a significant impact on them," said David Reuben, head of assurance at Grant Thornton Johannesburg.
"It is concerning that South African businesses share this view with some of the world's biggest economies," Reuben said.
SA companies 'in the dark'
A GLOBAL survey of 2800 businesses conducted by Grant Thornton found that only 40% of South African businesses were aware of coming global changes in accounting standards relating to the way they recognised and reported revenue.
The report was released yesterday. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) recently developed a joint proposal for a converged revenue recognition standard.
But less than one third or 32% of SA businesses believe existing accounting standards on revenue recognition need to be improved or replaced, despite a decade of documented problems with corporate revenue recognition.
"The majority of local businesses are not educated about these very important changes. Those that are, do not believe they are necessary. And yet, these changes will most likely have a significant impact on them," said David Reuben, head of assurance at Grant Thornton Johannesburg.
"It is concerning that South African businesses share this view with some of the world's biggest economies," Reuben said.
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