09/07/2026
It’s time to say goodbye to IAS 39.
For many South African SMEs, the "old way" of accounting for loans and investments felt like a comfortable pair of shoes. But come 2027, the third edition of IFRS for SMEs is officially retiring those familiar labels.
What’s changing for your business? The revised Standard moves away from complex, rigid categories and moves toward a principles-based model. Whether it’s your trade receivables, strategic equity, or intercompany loans, the focus is now on the economic substance of the transaction.
The Practical Impact:
• Direct Transparency: Investment fluctuations will now impact your Profit or Loss directly, no more "hiding" value changes in equity.
• Loan Accuracy: Interest-free or below-market loans to staff or subsidiaries will require a "day one" adjustment to reflect their true value.
• Better Comparison: Your financials will be more aligned with modern global standards, making you more attractive to lenders and partners.
Transitioning away from a framework you've used for over a decade can feel daunting. At PKF, we specialise in making the complex clear. We’re here to help you re-examine your loan books and investment portfolios so you can walk into 2027 with total confidence.
Is your finance team still using the "old labels"? Let's start the conversation.
https://www.pkf.co.za/contact/