FINANCIAL REPORTING : SUBSIDIARY LEGISLATION

INDEX TO SUBSIDIARY LEGISLATION

Financial Reporting (Public Interest Entities) Regulations

FINANCIAL REPORTING (PUBLIC INTEREST ENTITIES) REGULATIONS

 

(section 71)

(15th January, 2016)

 

ARRANGEMENT OF REGULATIONS

 

REGULATION

 

 

 

PART I
Preliminary

 

   1.   Citation

 

   2.   Interpretation

 

 

 

PART II
Registration of Public Interest Entities and other entities

 

   3.   Threshold for Public Interest Entities under section 22(d) of the Act

 

   4.   Application for registration as P.I.E or other entity

 

   5.   Certificate of registration

 

   6.   Application for renewal of registration as P.I.E or other entity

 

 

 

PART III
Registration of certified auditors and audit firms

 

   7.   Application for registration as certified auditor of public interest entity

 

   8.   Application for registration as audit firm of public interest entity

 

   9.   Register

 

   10.   Certificate of registration

 

   11.   Application for renewal of registration as certified auditor of public interest entity

 

   12.   Application for renewal of registration as audit firm of public interest entity

 

   13.   Application to restore registration

 

 

 

PART IV
Accreditation of Institute

 

   14.   Application for accreditation of Institute and branches of accountancy profession

 

   15.   Certificate of accreditation

 

   16.   Application for renewal of accreditation of Institute and branches of accountancy profession

 

 

 

PART V
Fines

 

   17.   Fines

 

 

 

      Schedules

 

 

S.I. 5, 2016.

PART I
Preliminary

 

1.   Citation

   These Regulations may be cited as the Financial Reporting (Public Interest Entities) Regulations.

 

2.   Interpretation

   In these Regulations, unless the context otherwise requires-

   "P.I.E" means public interest entity;

   "professional accountant" has the same meaning assigned to it under section 2 of the Accountants Act; and

   "register" means a register of certified auditors of P.I.E and other entities kept and maintained in accordance with section 23 of the Act.

PART II
Registration of Public Interest Entities and other entities

 

3.   Threshold for Public Interest Entities under section 22 (d) of the Act

   (1) An entity shall, in accordance with section 22(d) of the Act, be considered to be a public interest entity if at the end of the preceding accounting year the entity exceeded at least two of the following thresholds-

 

   (a)   an annual revenue of P300 million;

 

   (b)   200 employees;

 

   (c)   total assets of P200 million; or

 

   (d)   total liabilities of P100 million, not including shareholder's equity.

   (2) An entity that no longer meets at least two of the threshold, referred to in subregulation (1) shall inform the Authority, if at the time of renewal of registration in accordance with regulation 5(2)(b), the entity does not meet the thresholds, and shall give proof as may be required by the Authority.

 

4.   Application for registration as P.I.E or other entity

   (1) A P.I.E and other entity-

 

   (a)   considered to be a public interest entity in accordance with regulation 3; or

 

   (b)   required under any enactment to file financial statements and reports with a Government department or authority, in accordance with section 56(1) of the Act,

shall make an application to the Authority to be registered as a P.I.E.

   (2) An application referred to in subregulation (1) shall be made in Forms 1 (A) to (E) set out in Schedule 1 upon payment of a fee specified in Schedule 2.

 

5.   Certificate of registration

   (1) Where, after consideration of an application, the Authority is satisfied that the applicant qualifies to be registered in terms of section 23 of the Act, the Authority shall register the applicant and issue such applicant, a certificate of registration in-

 

   (a)   Form 2 set out in Schedule 1, where the applicant is an entity listed on the Botswana Stock Exchange;

 

   (b)   Form 3 set out in Schedule 1, where the applicant is an entity supervised by the Bank of Botswana;

 

   (c)   Form 4 set out in Schedule 1, where the applicant is an entity supervised by the Non-Bank Financial Institutions Regulatory Authority;

 

   (d)   Form 5 set out in Schedule 1, where the applicant is an entity considered by the Minister to be a P.I.E in accordance with regulation 3; and

 

   (e)   Form 6 set out in Schedule 1, where the applicant is an entity required to file financial statements and reports with a Government department or authority.

   (2) The certificate of registration referred to in subregulation (1) shall be-

 

   (a)   valid for a period of one year; and

 

   (b)   renewed on or before the 1st of January of each year.

 

6.   Application for renewal of registration as P.I.E or other entity

   (1) A P.I.E or other entity registered as such in accordance with regulation 5 shall make an application to renew the registration in Form 7 (A) to (E) and the application shall be accompanied by a subscription fee or renewal of registration fee specified in Schedule 2.

   (2) A P.I.E which fails to renew its registration as such or fails to pay the renewal of registration fee in accordance with subregulation (1) shall be liable to pay a penalty of 50 percent of the subscription fee or renewal of registration fee.

PART III
Registration of certified auditors and audit firms

 

7.   Application for registration as certified auditor of public interest entity

   (1) A professional accountant who wishes to be registered as a certified auditor of P.I.E in accordance with section 24 of the Act shall make an application in Form 8 set out in Schedule 1.

   (2) An application made in accordance with subregulation (1) shall be accompanied by a fee set out in Schedule 2.

 

8.   Application for registration as audit firm of public interest entity

   (1) An audit firm which wishes to practice or provide audit services to P.I.E in accordance with section 25 of the Act shall make an application in Form 9 set out in Schedule 1.

   (2) An application made in accordance with subregulation (1) shall be accompanied by a fee set out in Schedule 2.

 

9.   Register

   (1) A Register kept, maintained and updated by the Authority in accordance with section 23 of the Act shall be in the format applicable to such register set out in Forms 10,11,12,13,14,15,16 or 17 in Schedule 1.

   (2) The Authority shall make, on request, the Register available for-

 

   (a)   inspection by any person who wishes to inspect it; and

 

   (b)   photo copying of any entry in the Register, upon payment of a fee set out in Schedule 2.

 

10.   Certificate of registration

   The Authority shall, after registering a professional accountant as a certified auditor of P.I.E or an audit firm of P.I.E, issue-

 

   (a)   the certified auditor of P.I.E with a certificate of registration in Form 18 set out in Schedule 1; and

 

   (b)   the audit firm of P.I.E with a certificate of registration in Form 19 set out in Schedule 1.

 

11.   Application for renewal of registration as certified auditor of public interest entity

   (1) A certified auditor of P.I.E who wishes to renew his or her registration as such shall make an application in Form 20 set out in Schedule 1.

   (2) An application in accordance with subregulation (1) shall be made-

 

   (a)   where the registration has not been cancelled or suspended; and

 

   (b)   upon payment of a subscription fee or renewal of registration fee set out in Schedule 2.

   (3) The payment of the fee referred to in subregulation (2)(b) shall be made on or before the 1st"> of January of every year.

   (4) A certified auditor of P.I.E who fails to renew his or her registration as such or fails to pay the annual subscription fee or renewal of registration fee in accordance with subregulation (3) shall be liable to pay a penalty of 50 percent of the subscription fee or renewal of registration fee.

 

12.   Application for renewal of registration as audit firm of public interest entity

   (1) An audit firm of P.I.E which wishes to renew its registration as such shall make an application in Form 21 set out in Schedule 1.

   (2) An application in accordance with subregulation (1) shall be made-

 

   (a)   where the registration has not been cancelled or suspended; and

 

   (b)   upon payment of a subscription fee or renewal of registration fee set out in Schedule 2.

   (3) The payment of the fee referred to in sub-regulation (2)(b) shall be made on or before the 1st of January of every year.

   (4) An audit firm of P.I.E which fails to renew his or her registration as such or fails to pay the annual subscription fee or renewal of registration fee in accordance with subregulation (3) shall be liable to pay a penalty of 50 percent of the subscription fee or renewal of registration fee.

 

13.   Application to restore registration

   (1) A certified auditor or an audit firm of P.I.E whose name has been removed from the Register, or whose registration has been suspended by the Authority in accordance with section 31 of the Act, may make an application for restoration of the name in terms of section 32 of the Act-

 

   (a)   in the case of a certified auditor, in Form 22 set out in Schedule 1; and

 

   (b)   in the case of an audit firm, in Form 23 set out in Schedule 1.

   (2) An application made in accordance with subregulation (1) shall be accompanied by a fee set out in Schedule 2.

PART IV
Accreditation of Institute

 

14.   Application for accreditation of Institute and branches of accountancy profession

   (1) Where the Institute or its branch wishes to be accredited by the Authority as a professional accountancy body, it shall, in accordance with section 50 of the Act, make an application for accreditation in Form 24 set out in Schedule 1.

   (2) An application made in accordance with subregulation (1) shall be accompanied by a fee set out in Schedule 2.

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