Is the Measured Entity required to utilise the most recent financial year-end results for their BEE audit?


If a Measured Entity has (for example) both February 2015 & February 2016 Annual Financial Statements available, however they have not been rated previously on their February 2015 year-end, would they be compelled to utilise their latest (Feb 2016) year-end financials for the audit, or could they elect to be rated on the February 2015 AFS (if these are not older than 18 months post the year-end date)?

Response from the BEE Commissioner:

Based on the query below the measured entity can elect to use both the Feb 2015 and Feb 2016 financial statements provided they are not older than 18 months. However, it will be ideal for the measured entity to use the Feb 2016 financial statements to align to the reporting requirements in Part 2 of the B-BBEE Regulations published on 6 June 2016.

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