As per regulation made under the South African law promulgated in 2011, entities in South Africa are permitted to use either International Financial Reporting Standards (FIRS), the FIRS for SMEs, or the South African Generally Accepted Accounting Practice (SA GAAP).
Section 32(1) of the Estate Agency Affairs Act requires an estate agent to open and keep one or more trust accounts, to be properly designated as trust accounts, with a bank. This requirement remains, whether the account is used or not, and should the account be closed, the estate agent is not allowed to trade.
Every estate agent is to keep accounting records and have these audited within 4 (four) months after the final date of the estate agent’s financial year.
Accounting records, for purposes of the audit, are those records as may be necessary to reflect:
- All monies received or expended, including monies deposited into trust accounts or invested in a savings or other interest-bearing account.
- All assets and liabilities.
- All financial transactions and the financial position of the business.