Important development in the B-BBEE Environment
IRBA issued a communique on the 2nd August 2016 informing approved B-BBEE registered auditors of the IRBA Boards decision to withdraw from the regulation of the B-BBEE verification industry on the 30th September 2016.
Assurance engagements entered into with IRBA Accredited Auditors prior to the 30th September 2016 will be allowed a transitional period of 3 months until 31st December 2016 to complete these engagements and the relevant B-BBEE Certificate to be issued.
Practical considerations and recommendation
For measured entities falling within the ambit of the “old“ DTI Code of Good Practice which was gazetted February 2007, and have a measurement period ending before the 1st May 2015, the old codes may still be used for verification for a period of 18 months. The B-BBEE Certificate must be issued by 30th October 2016.
The 18 months above refers to the practice of both IRBA and SANAS regarding using financial statements / management accounts for measurement periods not older than 18 months.
For measured entities falling within the Sector codes (with the exception of Tourism and MAC Sector Codes) until replaced, can still be verified in terms of the relevant sector code by an IRBA Accredited Auditor as long as the B-BBEE Certificate is issued by the 31st December 2016.
Assuring smooth transition
Despite this radical news regarding IRBA’s withdrawal, the BEE Easy team is working with the current IRBA auditors that wish to be SANAS approved. We have also secured various SANAS verification agents as service providers that subscribe to our values of service delivery. Process alignment and transition is a top priority for the BEE Easy team and will be seamless either way.
To remain relevant in a changing space means relooking and revitalise your business. The Amended DTI Code of Good Practice introduced changes requiring measured entities to revisit their business and growth strategies and select strategic partners to ensure the desired B-BBEE outcomes. Our business development team is ready to understand your need and to make this happen for you.
Email Christine Grobler; firstname.lastname@example.org arrange a meeting to discuss your Transformation requirements.
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