Accounting standards

These are the specific principles, bases, conventions, rules and practices adopted by a municipality in preparing and presenting financial statements.

Accounting Standards Board

In terms of section 89(1) of the PFMA, the primary functions of the ASB are to set standards of generally recognised accounting practice for the financial statements of departments; public entities; constitutional institutions; municipalities and boards, commissions, companies, corporations, funds or other entities under the ownership control of a municipality and Parliament and provincial legislatures. It aim is to prepare and publish directives and guidelines concerning the standards set above as well as recommend to the Minister of Finance effective dates of implementation of these standards for the different categories of institutions to which the standards apply and perform any other function incidental to advancing financial reporting in the public sector.

Accrual accounting

Basis of accounting under which transactions and other events are recognised when they occur.

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