The Companies (Amendment) Bill was passed by Parliament in October 2014 and the legislative amendments to the Companies Act will be effected in two phases. The first phase is implemented on 1 July 2015 while the second phase is expected to come into effect in the first quarter of 2016.
The first phase of legislative amendments that have an impact on the ISCA Pronouncements pertain to terminology changes in Section 199 Accounting records and systems of control, Section 201 Accounts, consolidated accounts and directors’ report and Section 207 Powers and duties of auditors as to reports on accounts, as follows:
(a) “profit and loss accounts and balance sheets” replaced by “financial statements”
(b) “state of affairs and results” replaced by “financial position and performance”
(c) “subsidiaries” replaced by “subsidiary corporations”
The relevant ISCA Pronouncements have been amended to reflect the legislative amendments described above which mainly affect the illustrative auditor’s reports and illustrative engagement letter.