REGULATED INDUSTRIES

Accountancy SA,  May 2007  

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AMENDMENTS TO MEDICAL SCHEMES ACCOUNTING AND AUDITING GUIDE FOR THE YEAR-END 31 DECEMBER 2006

The Medical Schemes Accounting and Auditing Guide, for the year-end 31 December 2006, has been amended as follows and is available on SAICA's website.

Page 32 - Compliance with laws and regulations

Paragraph .09 has been amended as follows: "As part of the audit procedures, the auditor should consider the medical scheme's compliance, procedural and other obligations imposed by the Act, and rules of the medical scheme. The Council draws the attention of tahe auditor to the requirements regarding, whether"

Page 40 - Outstanding claims provision

The following portion of the note has been removed from page 40 as it was duplicated at the top of page 41:

"Analysis of movements in outstanding claims

Balance at beginning of year

Payments in respect of prior year

Over/under provision in prior year

Adjustment for current year

Balance at end of year"

Page 50 - Net income/(expense) on risk transfer arrangements

This note is intended to show the net effect of risk transfer arrangements on the income statement. The individual line items are recognised separately under appropriate headings in the income statement. The note has been amended as follows:

Claims incurred in respect of related risk transfer arrangements

Premiums/fees paid

Recoveries received

Net income/fexpense) on risk transfer arrangements

AUDIT REPORTS RELATING TO THE MIDP

The following circulars relating to the Motor Industry Development Programme (MIDP) have been removed from the SAICA website:

* Circular 4/97 - Guidance for Auditors: The motor industry development programme

* Circular 1/2002 - Guidance for Auditors: Productive asset allowance of the motor industry development programme

The auditor's reports that replace the above circulars have been loaded on to the Independent Regulatory Board for Auditors' website.

* Report of the Independent Registered Auditor to the International Trade Administration Commission of South Africa (ITAC) in Connection With an Application for Company Specific Percentage(s) in terms of the Motor Industry Development Programme (MIDP)

* Assurance Report of the Independent Auditor or Assurance Provider to the Directors/Members/Owners and the International Trade Administration Commission of South Africa (ITAC) in Connection With Foreign Currency Usage (D190) in Terms of the MIDP.

* Report of the Independent Auditor to the International Trade Administration Commission of South Africa (ITAC) in Connection With an Application for Productive Asset Allowance (PAA) of the MIDP.

* Assurance Report of the Independent Auditor or Assurance Provider to the International Trade Administration Commission of South Africa (ITAC) in Connection With an Application for Import Rebate Credit Certificates (IRCCs) in Terms of the MIDP.

Technical queries: standards@saica.co.za

Edited by: Thingle Pother and Magda Kendall

Ethics and Discipline queries: karenl@saica.co.za

Information Centre:pelmag@saica.co.za

Telephone:0116216641

Telefax: 0116216819

Website: http://www.saica.co.za

Copyright South African Institute of Chartered Accountants May 2007
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