Regulatory Alerts2018-03-31
PF Circular 107: Accounting for Investments in Pension Fund Records and Financial Returns
The South African Financial Services Board issued PF Circular 107 to mandate that pension funds, administrators, and insurers comply with South African Institute of Chartered Accountants standards for financial instruments and investment property. The circular requires funds to recognize, measure, and disclose these assets and liabilities at fair value rather than historical cost, with all fair value changes recognized in net profit or loss. These accounting requirements became effective on 1 January 2001, and fund boards are instructed to consult their auditors to ensure proper implementation and reporting in annual financial returns.
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