01/06/2026
For over a decade, many South African SMEs stayed in their "comfort zone" by sticking to IAS 39 principles for loans and receivables. It was familiar, predictable, and frankly, what we were all used to.
On 1 January 2027, that comfort zone officially closes its doors.
The revised IFRS for SMEs sweeps away old labels like "available-for-sale" and "held-to-maturity." Instead, we’re moving to a modernised, two-category model: Amortised Cost or Fair Value through Profit or Loss.
For many, this means:
- Volatility: Fluctuations in equity investments will now hit your profit or loss directly.
- Cash Flow Focus: It’s no longer about what you call the instrument, but the nature of the cash flows it generates.
- Deep Dives: Related-party loans and intercompany balances will require much closer scrutiny.
The transition isn't just a naming exercise; it’s a rethink of how your balance sheet reflects reality. KC Rottok Chesaina explores why letting go of IAS 39 is the first step toward more transparent reporting.
Prepare for the transition: https://www.pkf.co.za/news/2026/the-end-of-ias-39/
