A company’s public interest score determines the financial reporting standard that a company or close corporation needs to adopt, whether it needs to appoint a social and ethics committee as well as whether the company needs to be audited or simply require an independent review. A company’s public interest score needs to be calculated at the end of its financial year by either an independent reviewer, compiler of financial statement or an auditor.
A company’s Public Interest score is calculated as follows:
- 1 Point for every employee (average number of employees during any given financial year
- 1 point for every R1 million (or portion thereof) in third party liability of the company, at the financial year-end
- 1 point for every R1 million (or portion thereof) in turnover during the financial year
- 1 point for every individual who, at the end of the financial year, has a beneficiary interest either directly or indirectly in any of the company’s securities. In the case of a non-profit company, 1 point for every person that is a member of the company or a member of an association that is a member of the company.