See sections 175 (3) and 223
| (1) | For purposes of S 175 of the Act, the assets and turnover of a company at any particular time must be calculated in accordance with— |
| (a) | the financial reporting standards applicable to that company, as set out in regulation 27; or |
| (b) | SA GAAP, as defined in regulation 26 (1)(f), in the case of a company in respect of which no financial reporting standards have been prescribed. |
| (2) | At any particular time, the asset value of— |
| (a) | a company, other than a holding company, is equal to the gross value of the company's assets as shown on the company's balance sheet in its most recent annual financial statements; or |
| (b) | a holding company is equal to the gross value of the consolidated assets of the company and its subsidiaries, as shown on the company's balance sheet in its most recent annual financial statements, |
adjusted in either case in accordance with sub-regulation (3).
| (3) | If, between the date of the most recent annual financial statements and the date at which a calculation of a company's asset value is to be calculated, the company has acquired or divested itself of any subsidiary, or has entered into a joint venture not shown on those statements— |
| (a) | the following items must be added to the calculation of the company's asset value, to the extent that any such item would be required to be included in the company's assets on its annual financial statements: |
| (i) | the value of each such recently acquired asset; and |
| (ii) | any asset received by the company in exchange for a recently divested asset; and |
| (b) | the following items may be deducted from the company's asset value, to the extent that any such item was included as an asset on the company's most recent annual financial statements: |
| (i) | the value of each such recently divested asset at the date of divestiture; and |
| (ii) | any asset that was used by the company to acquire a recently acquired asset. |
| (4) | At any particular time, the annual turnover of— |
| (a) | a company other than a holding company is the gross revenue of that company from income in, into or from the Republic, arising from the following transactions or events, as recorded on the company's most recent annual financial statements: |
| (ii) | the rendering of services; or |
| (iii) | the use by other persons of the company's assets yielding interest, royalties, or dividends; or |
| (b) | a holding company is the consolidated gross revenue of that company and each of its subsidiaries from income in, into or from the Republic, arising from the following transactions or events, as recorded on the company's most recent annual financial statements: |
| (ii) | the rendering of services; or |
| (iii) | the use by other persons of the company's assets yielding interest, royalties, or dividends, |
adjusted in accordance with sub-regulations (5) and (6), in either case.
| (5) | In calculating the annual turnover of a company— |
| (a) | any amount contemplated in sub-regulation (4) may be excluded to the extent that it is properly excluded from gross revenue in accordance with the applicable financial reporting standards referred to in sub-regulation (1); |
| (b) | taxes, rebates, or similar amounts calculated and paid or to be paid in direct relation to revenue as, for example, sales tax, VAT, excise duties or sales rebates, may be deducted from gross revenue; and |
| (c) | gains arising from non-current assets or from foreign currency transactions may be excluded from gross revenue. |
| (6) | If, between the date of the most recent annual financial statements and the date at which a calculation of a company's annual turnover is to be calculated, the company has acquired or divested itself of any subsidiary, or entered into a joint venture not shown on those statements— |
| (a) | the turnover generated by any such newly acquired asset must be included in the calculation of the company's annual turnover, to the extent that any such item would be required to be included in the company's income statements on its annual financial statements; and |
| (b) | the turnover generated in the previous financial year by any such newly divested asset may be excluded in the calculation of the company's annual turnover, to the extent that any such item was included in the company's income statements on its most recent annual financial statements. |
