In South Africa, a public interest score (PIS) determines which financial reporting standards apply and whether an entity requires an independent audit. Use our PIS calculator to determine your entity's PIS score.
What is a public interest score?
The Companies Act of 2008 introduced the concept of a company’s Public Interest Score (PIS). A Public Interest Score (PIS) applies to every company and close corporation and must be calculated at the end of each financial year. The calculation is usually performed by an auditor, bookkeeper, or accountant.
How to calculate a public interest score
The PIS is calculated over a financial year and works as follows:
1 point for each employee (or the average number of employees throughout the year)
1 point per million rand of liabilities
1 point for each million rand of turnover
1 point for every individual who has a direct or indirect interest in the company.
What does my public interest score mean?
A PIS score results in the following:
Score less than 100 points
Reporting standard: Financial reporting as determined by the entity.
Review: No review is required if the entity is owner-managed. If the entity is not owner-managed, then an independent review by a registered auditor or chartered accountant.
Score between 100 and 350 points
Reporting standard: Either IFRS, IFRS for SMEs, or SA GAAP.
Review: If the financials were independently compiled, an independent review by a registered auditor or chartered accountant is required. If the financials were internally compiled, an audit by a registered auditor.
Over 350 points
Reporting standard: Either IFRS or IFRS for SMEs.
Review: Requires an audit by a registered auditor.
Note that public companies listed on an exchange are required to report using IFRS and require an audit.