Postal Services Act, 1998 (Act No. 124 of 1998)Accounting Separation Regulations for Reserved Postal Services7. Generally Accepted Accounting Principles |
| 1) | Regulatory Financial Statements must employ the same accounting policies used for the preparation of statutory financial statements, together with the principles of accounting separation; |
| 2) | The Licensed Operator's statutory financial statements must be based upon Generally Accepted Accounting Practice in the Republic of South Africa ("SA GAAP"); |
| 3) | In the absence of a Statement of Accounting Practice under SA GAAP, the Licensed Operator must adopt the relevant International Accounting Standards ("lAS") Committee's standard; |
| 4) | All accounting policies and bases adopted by the Licensed Operator in the preparation of RFS must be described in the Operator's Procedure Manual; |
| 5) | To the extent that an operator adopts accounting policies that differ from regulation 6(4) of these regulations, the Licensed Operator must prominently disclose the deviation from SA GAAP or lAS, and the reason for such deviation, in the Operator's Procedure Manual. |
| 6) | The General Accepted Accounting Principles that the Licensed Operator must adhere to are as follows: |
| a) | Basis of Accounting (i.e. reporting of financial transactions) must be in South African Rand. |
| b) | All Related Party Transactions must be identified, disclosed and treated at an arm's length value. |
| c) | All material Related Party Transactions must be documented in the Operator's Procedure Manual, as follows: |
| d) | The party with whom the transaction occurs; |
| e) | A description of the transaction including nature of the products/services received/provided; |
| f) | The bases of recording the transactions in the accounting ledgers; and |
| g) | The bases of re-valuing transactions. |