Q Congratulations on your election as the

BICA President. Tell us about Frederik Els. What you have been doing, where, why that career path and when you became an accountant?

A Thank you. I am honoured to hold

this position, and I look forward to working with my colleagues in BICA and with our Association’s many friends, associates and stakeholders in the business community. My mission is to help make our collective contribution to reinforcing BICA’s reputation for quality, integrity and professionalism.

I started studying chemical engineering and never gave a thought to becoming an accountant or auditor. In fact, I did not even take accountancy as a subject at school. One day at university I started paging through a friend’s text books. He was studying for a B. Comm degree. Commercial law, economics, auditing and accounting just looked more interesting at that stage. I started working at an auditing firm during the university holidays and within two weeks decided to change my career path and to study part time. I worked with the same firm, which later became part of Deloitte, until I qualified.

After qualification I spent a couple of years with a large mining company but soon decided that I preferred the diversity of working in a professional services firm. I returned to Deloitte and have since worked with Deloitte in South Africa, England, Namibia and Botswana.

Q What keeps you going forward and motivates you in your chosen

profession?

A I cannot think of many other professions or careers that expose

you to numerous different organisations, operations, locations, industries, systems, products, people, management styles and other professionals. This variety is coupled with the fact that as a professional you have no option but to stay up-to-date and relevant with all developments in and around the profession and the organisations you work with. These include business trends, technical skills, technology changes and international developments.

This motivates and compels you to grow and develop as an individual.

Q Looking at your experience as an accountant, how is the profession

important in a company’s growth as well as the overall economy of a country?

AThe necessity that a professional accountant must be up-to-date with

the current trends and developments in the environment that he or she operates in ensures that a professional accountant should always be in a position to make a valuable and relevant contribution to the organisation that he or she is working for as an employee, manager, client or consultant.

This is also applicable to the economyof a country as a whole, should there be a sufficient number of appropriately qualified and experienced professional accountants and auditors to contribute to the economy and the organisations they serve.

bullet nNews from Botswana Institute of Chartered Accountants

August 2015

Meet the new BICA CouncilBotswana Institute of Chartered Account-ants held its Annual General Meeting on23 April 2015 at Cresta Lodge, Gaborone.

Council members elected to lead BICA for the next two years, until April 2017, are:

President Frederik ElsVice President Gosego MotsamaiTreasurer Peo PillarMember Rudi BinedellMember Tshegofatso Modise

Member Moshe LibengoMember-Ministerial appointee Dr Mpho IsaiahMember-Ministerial appointee Boineelo PeterMember-Ministerial appointee Conductor Masena

RepresentativesTechnician Class Mpho MasugeNorthern Committee Michel Katombe

Incoming BICA President Frederik Els (centre) introduces his new Council team (from left): Michel Katombe, Dr Mpho Isaiah, Peo Pillar, Moshe Libengo, Conductor Masena and Mpho Masuge. Other members are Gosego Motsamai, Rudi Binedell, Tshegofatso Modise and Boineelo Peter.

Man with a missionBotswana Institute of Chartered Accountants’ new President, FREDERIK ELS, shares some personal and professional insights with BICA Bulletin Editor Oupa Gaofise.

Continued on page 3

3 Call for volunteers to tutor in free CPD training

initiative.

4 Be warned: VAT penalties can cripple your business.

5 You can help IASB shape the future of financial

reporting.

6 Many accountants don’t know why audits are

carried out.

7 Will your business survive in hard times?

7 IFRS Red Book on sale at BICA.

8 Dinner dance was a gala night to remember.

9 Getting together with stakeholders in Gaborone

and Francistown.

10 BICA was well seen and heard at BOCCIM

Northern Trade Fair.

11 KPMG are BICA basketball champs.

12 Another victory for KPMG this time on the

pool table.

13 Test your knowledge – True or False?

> bulletin

>2

Botswana Institute ofChartered Accountants

Plot 50374 Block 32nd and 3rd floorFairgrounds Financial CentrePrivate Bag 0021Gaborone, BotswanaTel. (+267) 3972992Fax (+267) 3972982 Email bica@bica.org.bw www.bica.org.bw

Francistown Satellite OfficePlot 32753/42nd Floor FNBB BuildingBlue Jacket StreetTel. (+267) 2418280Fax (+267) 2418263Email bica@bica.org.bw www.bica.org.bw

Editorial TeamEditorOupa Gaofise

Editorial supportFeliaty TJ Ndeke, Othusitse Siele, Regina Ramanteba,Tshepang Monare, Masego Lesole

Project managerOupa Gaofise

Design and layoutKgotla Communications

Contributors IFAC, Jonathan Hore, Pyoka

Mfuni, Amos Gicheba

Disclaimer: The Council of Botswana Institute of Char-tered Accountants does not necessarily agree with or guarantee the accuracy of statements made by contrib-utors or advertisers, or accept responsibility for state-ments that are in this publication.

2015 BICA Bulletin is published on behalf of Botswana Institute of Chartered Accountants. No part of this work may be used in any form or by any means – graphically, electronically or mechanically, including photocopy-ing, recording, taping, information storage or retrieval system – without permission from the Institute, except in accordance with the Accountants Act or laws of Bot-swana.

IN THIS ISSUE

Botswana Institute of Chartered

Accountants

To be the leading accountancy professional body with an internationally recognised professional accountancy qualification

To protect public interest through:• Promoting the accountancy

profession• Facilitating quality professional

accountancy services through the monitoring and regulation of professional accountants

• Developing professional accountants

In order to motivate the right behaviour and culture that will support the implementation of the Vision and Mission statements, the BICA Core Values are:• Integrity• Excellence• Independence• Transparency and

Accountability

Vision

Mission

Core values

BICA is conducting a pilot project of offering free Continuing Professional Development (CPD) events to its members, in addition to the normal paid ones. The free CPD events will be for the duration of two hours after 5pm on weekdays and four hours on Saturdays.

This is intended to increase the CPD compliance rate for the BICA membership and ensure that learning and development remains relevant to individual members at all stages of their careers.

At the moment we are open to all topics that could be of interest to the general BICA membership. Paid-for CPD events held by BICA cover a number of fields such as Accounting, Information Technology, Human Resources , Audit, Corporate

Governance, Leadership, and Taxation, to name a few.

Members are invited to take part in this endeavour by volunteering to serve as resource persons. Please indicate your interest to participate in this noble cause by sending your profile/abridged CV, the topic you want to offer and a brief outline of what will be covered, to the undersigned.

The facilitators will be credited with CPD Units at the rate of double the hours spent on presenting.

Please note that BICA will be under no obligation to use everyone who shows interest in this exercise.

We look forward to hearing from you. Tshepang Monare tmonare@bica.org.bw

>3

> bulletin

From page 1

Q The BICA qualification is set to have its first graduate probably next year

under your term, what are your plans to ensure that such graduates are relevant to the market, and also to ensure that the private sector sponsors its staff to pursue the qualification?

A The first graduate and those who will soon follow will and should

distinguish themselves in the market as highly skilled, determined and experienced resources. This is the only way that BICA will be able to differentiate the brand and the qualification in the local as well as the regional market.

It is purely this distinction that will convince the private sector sponsors that the BICA qualification is the qualification to support in the future.

Q As BICA President what legacy would you want to leave at the end of your

term?

A It will be pleasing to remember that I have been closely involved with BICA

when the BICA qualification really started to gain momentum and became a market leader.

Our new CEO has implemented significant improvements in the way BICA operates and responds to stakeholders and the members in the last twelve months. I will be content if BICA could improve even further on these enhancements and become yet more effective in providing services and support to our members and stakeholders. The successful implementation of the final phase of our 2016 strategic plan is a priority for the Council and for me.

Q What else would you like to share with the readers?

A BICA is a highly professional organisation managed by skilled

and experienced staff and overseen by dedicated Council members. Our Association plays a very active role in the country and the economy of Botswana and the region as a whole. BICA participates and contributes to regional and international occasions at a much greater level than would be expected of a ‘small’ country with limited resources.

BICA members can certainly be proud of the institution that they are associated with.

Call for volunteers

Man with a mission

2015 CPD EventsGABORONE ACTIVITY DATE CPD

Company SecretarialSeminar 19 Aug 8 hrs

Information SecurityAwareness Workshop 3-4 Sept 16 hrs

Tax Update Seminar 17 Sept 8 hrs

CorporateGovernance 15 Oct 8 hrs

IFRS for SMEs 6 Oct 8 hrs

IntermediateMicrosoft Excell 2 Nov 16 hrs

Fraud and Risk Management 12 Nov 8 hrs

ACTIVITY DATE CPD

Company SecretarialSeminar 17 Aug 8 hrs

Taxation UpdateSeminar 14 Sept 8 hrs

IFRS for SMEs 5 Oct 8 hrs

Fraud and RiskManagement 10 Nov 8 hrs

ACTIVITY DATE CPD

Taxation 21 Sept 8 hrs

FRANCISTOWN

KASANE

> bulletin

>4

The VAT Act Chapter 50:03 empowers Botswana Unified Revenue Services to levy various penalties, mainly as way

of enforcing compliance with the provisions of the Act.

Before we analyse the most common VAT penalties, it is important to review how VAT returns are filed. Registered persons (those registered with BURS for VAT purposes) charge tax when they supply goods or services to their clients (output tax). They are also entitled to offset the tax they suffer when they acquire goods and services for their business (input tax) against the output tax. Where output tax exceeds input tax, the registered person should pay VAT to BURS. A refund is claimable from BURS where input tax exceeds output tax.

Registered persons are required to file VAT returns, based on the VAT category that is allocated to them at the time of registration. A VAT category determines the frequency at which a registered person is required to file VAT returns to BURS. Category A and B VAT registrants file VAT returns on bi-monthly intervals, while category C registrants file returns monthly. VAT returns are required to be filed with BURS not later than the 25th day of the month following the end of a tax period. Where a return bears VAT payable, the VAT should be paid by the date of submitting the return. If a VAT registrant’s tax period ends on 31 July 2014, the VAT return would be due by 25 August 2014.

Section 26 of the Act empowers the Commissioner General to levy late-return submission penalties of 10% of the tax payable per month or P50 per day, whichever is greater. Part of a month, say four days, is

treated as a full month for the purposes of determining the VAT penalties

This is arguably one of the heaviest penalties in the VAT Act, especially if the VAT payable is significant.

If a VAT registrant submits a VAT return for the month of January 2014 on 10 September 2014, the penalty would be determined for the months of February 2014 to September 2014, inclusive. If the VAT payable per that return is say P10 000, the penalty would be P8 000, being 10% of P10 000 multiplied by eight months. In other instances, the VAT

registrant may be required to pay a penalty equal to 100% of the tax payable, which is rather punitive. Note, however, that the late-submission penalty should in no instance exceed the tax payable per the VAT return.

Late-VAT submission penalties can at

times be avoided by lodging an application for extension of time to submit the return. As long as just cause is shown, the Commissioner General may grant the requested extension. Regardless of the fact that an extension has been requested or granted, VAT due should be paid in time to avoid late-payment interest of 1.5% per month. Part of a month is also regarded as a full month, for the purposes of determining the interest.

Prior to 4 October 2013 there was no penalty for late submission of such returns. The Act only provided for the levying of a fine of P5 000 upon conviction by a court of law, meaning that technically BURS could not charge any penalty for late submission of such returns. However, with effect from the mentioned date the late-submission of a nil or refund VAT return attracts a maximum penalty of P5 000. Note that the P5 000 penalty can be negotiated downwards, depending on one’s circumstances. Dormant businesses which are registered for VAT should still file returns, including nil returns, so as to avoid late-submission penalties.

The Act also provides that the

Continued on following page

‘Extension of VAT submission deadlines can be granted if there is good reason.’

By JONATHANHORE

Senior TaxAdvisor KPMGBotswana

Be warned: VAT penalties can cripple your business

Don’t get on the wrong side of the people in this building. To avoid penalties make sure your VAT submission to BURS is accurate and on time.

> bulletin

>5

From previous page

Commissioner General may levy a 200% penalty where tax is underpaid due to amisleading or false statement. A misleading or false statement may include filing an incorrect VAT return, when the registered person is fully aware that the return results in the underpayment of VAT. This may happen in instances where a VAT registrant knowingly understates output tax. If BURS identifies the understatement it will charge the 200% penalty accordingly, in addition to interest of 1.5% per month or part thereof. This may also prompt BURS to institute a VAT audit. In some instances, a tax audit focusing on one tax-head such as VAT may end up spilling over to other tax-heads such as Corporate Tax, commonly known as ‘spin-off audits’.

As stated above, BURS charges late-return submission penalties as well as interest for late payment of tax. Interestingly, section 33 of the Act also empowers the Commissioner General to charge a penalty for late ‘payment’ of tax. If this was actively implemented, it would result in two penalties being charged, over and above the late-payment interest, i.e. a late-return submission penalty and a late-payment penalty. It is worth noting that BURS currently does not levy the late-payment penalty, which could otherwise cripple most businesses.

Regardless of the leniency exercised by BURS in this regard, the VAT penalties are still heavy and can cripple one’s business, especially if the defaults persist for a long time.

It is clear that the Act provides for heavy VAT penalties and every registered person should put in place measures to avoid late submission of returns and late payment of VAT. Further, every registered person should ensure that VAT returns are thoroughly checked for correctness before being lodged with BURS, to avoid the possibility of incurring penalties and interest.

• Comments on this article can be addressed to taxservices@kpmg.bw

Disclaimer: The information contained in this

article is of a general nature and is not intended

to address particular circumstances of any

person. KPMG does not accept legal liability

for any loss occasioned through the reliance of

information contained in this article.

You manage what you measure, as the old saying goes. Modern accounting standards measure

business performance more effectively than ever before. Because of those standards, derivative financial instruments – famously labelled by Warren Buffett as financial weapons of mass destruction – are no longer swept under the carpet and stock options held by senior management must be reported clearly to investors. Pension liabilities are now routinely discussed in the boardroom, and soon liabilities incurred through lease contracts will be fully reported on the balance sheet and not buried in opaque footnotes.

Existing International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board (IASB) bring transparency, accountability and efficiency to capital markets in more than 100 countries around the world – and they do that pretty well. But the standards can be improved, and so can the conceptual building blocks on which they are based. The IASB has published a Conceptual Framework consultation document seeking feedback on our suggestions for improving those conceptual building blocks.

For example, when should assets and liabilities be measured at cost and when should they be measured at fair value? When should income and expenses be included in profit or loss and when should they be reported in a different statement,

as part of ‘Other Comprehensive Income’? These are some of the questions

touched on in the exposure draft, in which we introduce a new chapter on measurement that describes the various measurement bases and factors to consider when determining which basis should be used. The proposals also state that profit or loss is the primary source of information about a company’s performance and refine the definitions of the basic building blocks of financial statements: assets, liabilities, equity, income, and expenses.

Furthermore, our consultation revisits some areas of continuing debate, such as the role that financial statements play in showing how management has carried out its stewardship of a company’s resources, and the relationship between prudence and neutral financial information.

These topics are fundamental to the usefulness of financial information, on which investors and global capital markets depend.

The Conceptual Framework for IFRS will provide a reference point for the development of all future standards and interpretations. However, it will not only be useful for us as the standard setter. It will also help companies to develop their accounting policies and assist in the general understanding and interpretation of accounting standards. When we consulted on our work agenda in 2011, stakeholders asked us to prioritize the Conceptual Framework. We have listened to that feedback and plan to issue a final Conceptual Framework in 2016 (see the work plan web page for more detail).

This is a great opportunity to have a proper discussion on the big picture questions in financial reporting. Over the next few months we will have outreach meetings around the world to discuss the proposals with a wide range of stakeholders who are interested in our work.

You can help IASB shape the future of financial reportingBy HANS HOOGERVORST

Chairman, International AccountingStandards Board

‘Standard work well but can be improved.’

> bulletin

>6

It may seem amazing but the fact is that there are many practising accountants who do not know why an audit of financial

statements is carried out. I have come to this conclusion after being associated with a number of firms of accountants.

There are those who believe that the audit of financial statements is synonymous with tax consultancy. This group will focus on advising the client on areas where tax savings can be made or where there is exposure as a result of non-compliance.

There are others who believe that the objective of an audit of financial statements is to advise the client on areas where improvements can be made to the internal control system. As such they will review the system of the client thoroughly and give a detailed management letter. The misinterpretation of the objective of an audit of financial statements is as a result of audit firms trying to meet the expectations of their clients which may not be the same as the objective of an audit of financial statements. It is a fact that audit firms are not only professional firms but also businesses. In order to run a viable business the firm must respond to the needs of the client, hence the divergence from the true objective of an audit of financial statement.

The fathers of audit of financial statements intended it to be an assurance engagement. Audit of financial statements was born as a result of separation of ownership from management of business. The owners of a business invest resources while the management is in charge of the day-to-day operations. Management are required to account for their stewardship to the owners. This accountability is in form of financial statements. Since the management

would like to protect their jobs, they would obviously be inclined to present biased financial statements in order to secure their positions. Being alive to this fact, the owners appoint another party independent of management to examine the financial statements (which have been prepared by the management) and give an opinion on their truthfulness and correctness. That is how audit began and has continued to evolve for generations but with the objective remaining the same.

In many countries audit of financial statements is required to be done in accordance with International Standards on Auditing (ISA). The ISAs are the benchmarks against which a practising accountant is aluated in determining whether the audit of financial statements was properly done.

ISA 200 defines the objective of an audit of financial statements. The definition is not at variance with that envisaged by the founders of the audit of financial statements. The ISAs can be broadly divided into three categories – planning, executing and reporting.

The purpose of planning is to identify and assess the risk of material misstatement. The planning ISAs thus offer guidance on how to ascertain and to give weight to the risk of material misstatement. It follows that an audit will be considered to have been effectively planned if all the risks of material misstatement were identified and weighted.

The execution stage aims at responding to the identified and assessed risk of material misstatement. The audit procedures adopted are like guided missiles; they target the areas where risks of material misstatement are expected. Thus execution is effectively accomplished if all the identified and assessed risks of material misstatement are appropriately responded to.

The reporting stage is the communication by the auditor to the owners on the terms of reference of the audit as captured in ISA 200, that is: are the financial statements free from material misstatement. The audit report is based on the results of the audit procedures carried out.

In light of the objective of an audit of

financial statements, various audit reports are possible. The auditor may agree with the financial statements as prepared by management. The audit evidence and conclusions of the auditor would thus be consistent with the financial statements. The auditor may report that the financial statements are materially misstated. In this case, the auditor’s evidence contradicts what is in the financial statements. The auditor may also report that there is no audit evidence to act as a basis for the audit report. In this case the scope of the auditor’s work is limited.

I have come across qualified audit reports that state ‘we did not attend the inventory count and therefore we have accepted assurance from the directors that they are correctly stated. In our opinion except for the above qualification the financial statements present a true and fair view’.

The wording of the above paragraph is contradictory. The auditors stated that they accepted the assurance of the directors that the inventories were correctly stated. It means that the auditors (in their opinion) obtained sufficient and appropriate evidence with regard to inventories. The sufficient and appropriate evidence which the auditors obtained is the ‘assurance of the directors’. The auditor is thus satisfied with the evidence. However, in the next line the auditor qualifies apparently on the basis of scope limitation arising as a result of failure to attend the inventory count. How can one state that they are content with the evidence and at the same time state that they did not get evidence? It has to be one or the other, not both. The words ‘we have accepted assurance from the directors that the inventories are correctly stated’ should not be in the audit report if a qualification is intended.

The case for a strong and competent oversight of audit firms by the professional regulator (BICA) can thus not be overemphasised, if my experience as reflected in this article is anything to go by.

Many accountants don’t knowthe ‘what’ or ‘why’ of auditing

By AMOS GICHEBA

ACA (Botswsna)CPAK (Kenya)

2

> bulletin

>7

Many businesses in Botswana are facing trying times. Managers are under pressure to reduce

expenses for a better performance. To make things worse, concerns about increased costs have been overshadowed by liquidity shortfalls within the banking and business environment.

While managers need to act quickly to curb serious losses for their organisation, there is need to think strategically about how to deal with cost reduction and revenue pressures. Decisions to be made must link to the overall organisational objectives to enable sustainability. Short-term cost-saving decisions could lead to long-term disaster for the organisation. Managers need to look at two main areas for the business; they must assess the

business model and review cost centres and drivers.

As an organisation grows the business model that was used to set up the enterprise is mostly put aside and other peripheral activities take place. A business model is, in simple terms, the core aspects or the ‘recipe’ of the business. A review of the business model brings to the fore the actual reasons for the organisation’s existence. It will help in the decision of whether the organisation can really survive

the current turbulences within the business environment.

The cost centres are sections within the organisation that incur costs, while cost drivers are factors which will change the cost within the cost centre. For instance, in a production department cost drivers are the number of units, the number of employees, etc.

The managers in each cost centre need to look at their cost drivers and make adjustments in line with the business model and objectives. It is also possible that some cost centres might need to be merged to benefit through economies of scale. The marketing and customer service cost centres could be merged. Cost drivers such as sales personnel could double as customer service officers as a form of cost reduction.

In these difficult times organisations need to perform a position audit and act decisively to avoid long-term impacts on the business. Managers must really think critically and avoid making any rushed decisions.

PYOKA MFUNI is Finance Manager at Leo Schachter Botswana (Pty) Ltd. He writes above in his professional capacity as a Chartered Management Accountant. Email: pyoka2002@yahoo.co.uk

Will your business survive in hard times?

The 2015 International Financial Reporting Standards RED BOOKS are on sale at BICA, price P1 400. Numbers are very limited, so reservations cannot be made.

Payment is by cash or cheque, and a swiping machine is also available for convenience. Payment can be made by EFT into the BICA account (details below) with proof of payment emailed to: accounts@bica.org.bw

Stanbic BankFairgrounds BranchCurrent Account Number 9060000684207

IFRS Red Bookson sale at BICA

By PYOKAMFUNI

MBA, ACMA, ACPA, MAAT

The Botswana Institute of Chartered Accountants annual dinner dance on 24 April was a gala affair enjoyed by

all. Held at Gaborone International

Convention Centre the night after the Institute’s annual general meeting, it was the occasion for good food and good fellowship, for spending special time with old friends and colleagues, and for meeting new ones.

Welcoming the guests, BICA Chief Executive Officer Verily Molatedi called for the full support of stakeholders in the profession to help clamp down on those individuals who purport to be accountants and are operating illegally without registering with BICA.

She noted that by breaking the law these operators commit an offence that carries the penalty of a fine of not more than P500 000 or imprisonment for up to 10 years, or both.

The guest speaker, Auditor General Pulane Letebele, encouraged accountants to volunteer their services to emerging businesses, especially those owned by young people, facilitated through the BICA committee structures and in collaboration with the Ministry of Youth, Sports and Culture. She also urged accountants to make an effort to educate the public, especially business people in the formal sector, on the importance of accounting and the maintenance of proper accounting systems.

‘We can even help them to understand concepts as basic as the fact that income does not equal profit,’ she said. ‘Properly run businesses should generate growth, which in turn should translate into employment creation and wealth creation.’

Entertainment was provided by Thabang Garogwe and band, and the Divine Brothers, making it a musical and glamorous night to remember – a perfect opportunity for BICA members and stakeholders to dine and share time together and draw on each others’ experiences.

The guests were also given a good chance of winning an assortment of raffle prizes, with some walking away with smart phones, cash and accommodation vouchers.

> bulletin

>8

Guest speaker Auditor General Pulane Letebele

BICA Chief Executive Officer Verily Molatedi welcomed the guests

Incoming BICA President Frederik Els

Immediate past BICA President Tshegofatso Modise

Fun on the floor. The ladies step it out.

The Divine Brothers helped the night to swing.

BICA dinner dance was agala night to remember

BICA Treasurer Peo Pillar gave the vote of thanks.

> bulletin

>9

BICA places great value on keeping in close contact with its stakeholders, and made the most of post-

AGM cocktail functions that it hosted in Gaborone and Francistown on 9 and 11 June respectively.

They were the occasions for stakeholders to be formally introduced to incoming BICA President Frederik Els, and for him to present his Council team, to update stakeholders on the Institute’s operations and outline its direction during his tenure.

He told the guests that Botswana was in dire need of fully qualified and professional accountants to enable the private sector and Government to conduct business and complete commissioned projects on time and within budget.

Noting that key areas of the economy were being adversely affected, he called for a concerted effort by all stakeholders to ensure that the accounting profession was promoted and fully subscribed to. He urged stakeholders to support BICA as it carried out its mandate, and to encourage more Batswana to take up accountancy as a career.

The President appealed to stakeholders to be proactive and help Government by sponsoring students who want to enrol and study for the BICA qualification. He encouraged them to register and be accredited as Authorised Training Employers.

He reminded stakeholders that it is a statutory requirement of the Accountants Act No.12 of 2010 that every person who performs or holds himself/herself out to perform professional accounting services for a salary or fee must register with BICA. In terms of section 30 (6) of the Act, any person who fails to so register commits an offence and is liable to a fine not exceedingP500 000 or to imprisonment for not more than 10 years, or both.

The Act defines professional accounting services as those requiring accountancy or related skills relating to auditing, taxation, management consulting and financial management.

The President noted that the Act is in place to protect the public interest through monitoring and regulating the accounting profession.

Getting together with stakeholdersin Gaborone and Francistown

Stakeholders urged to register as Authorised Training Employers

Encourage more Batswana to take up accountancy

Monitoring and regulating the profession

> bulletin

>10

BICA was well seen and heard at BOCCIM Northern Trade Fair

BICA made a point of being well visible again at the BOCCIM Northern Trade Fair in Francistown, with the

Francistown Satellite Office participating for the third time as part of the Institute’s ongoing public awareness initiative.

The purpose of being at the Fair was to continue the momentum of spreading awareness about BICA’s services and products. The annual event is an important part of the Institute’s presence in the North, being an ideal platform to showcase and explain the BICA mandate as well as to motivate qualifying but unregistered people to register with the Institute.

Potential and prospective members and students visited the BICA stall and showed keen interest in the Institute’s operation. The Fair is a great marketing tool as it gives the exhibitor direct interaction with clients, different stakeholders and other exhibitors.

Although not as well attended as the 2014 fair, it still remained relevant for BICA to be present, to share information and to explain the Institute’s central role in developing and promoting the accountancy profession in Botswana. Visitors to the stand were able to learn about the BICA mandate and what the Accountants Act No.12 of 2010 requires for those wanting to practise as accountants.

It was also the opportunity to create awareness of the BICA qualification and to encourage potential students to enrol for Botswana’s own professional accounting qualification.

As usual there was a judging of participants in different categories. BICA took third place in the category of Professional Membership Bodies and Associations, the first prize going to Botswana National Sports Council and the second to Botswana Bureau of Standards.

Visitors to the BICA stand at BOCCIM Northern Trade Fair showed keen interest in the Institute’s products and services.

Showing andsharing to promote and develop the profession

Six teams – KPMG, BICA, Ernst and Young, Grant Thornton, BAC and Office of the Auditor General – signed

on at the annual BICA basketball tournament, sponsored by Ernst and Young, played at the UB courts.

The encounters, which attracted a large crowd of spectators, started on a high note with all the teams showing their eagerness to win. Points were awarded for each fixture, with each team ranked based on points gathered per fixture.

BICA and BAC bowed out at the competitive quarter finals stage, leaving

the other four to contest the semi finals and then KPMG and Grant Thornton emerged as finalists.

The final game was a needle match from start to finish. Grant Thornton made an early bid to assert their superiority, but KPMG resisted strongly and showed equal determination to win. The score at halftime was tied, and KPMG finally prevailed in the dying minutes of the game to secure victory.

KPMG were duly declared 2015 BICA Basketball Champions, with Grant Thornton runners-up and Ernst and Young the bronze medallists.

The victorious KPMG BICA 2015 Basketball Champions.

KPMG make ita slam-dunk

> bulletin

>11

> bulletin

>12

Not long after their victory on the basketball courts, KPMG showed a keen eye and a steady hand to win the 2015 BICA Pool Tournament.

Generously sponsored by Botswana Accountancy College, to whom BICA’s gratitude is extended, the tournament attracted many teams to the tables at the Bull and Bush.

The KPMG players showed skill and consistency and emerged overall winners, with BAC second and Grant Thornton third.

Pool tournamentwas well andtruly potted

Action on the green baize.

Victorious KPMG.

Runners-up BAC.

Third placed Grant Thornton.

Match ‘em up! 1 Property used in the operation of

Owner’s equity business (capital)

2 Claims by creditors to the property Expenses

(assets) of a business

3 Owner’s rights and claims to the Liabilities

property of a business

4 Decrease to owner’s equity resulting Assets

from business operations

5 Requires every business to be Realisation rule

accounted for separately

6 Assumes that a business will continue Matching rule

operating indefinitely

7 Requires transactions and Business Economic events to be measured in money. Entity rule

8 Requires that revenues are recorded Historical Cost rule

when eventually earned

9 Requires offsetting the revenues Going-Concern earned with expenses incurred rule

10 Requires that assets are recorded Monetary rule

at their original costs

> bulletin

>13

True or false?

1. The only users of financial information are the owners of a business.

2. The double entry bookkeeping system is the recommended method to use for business accounting.

3. A Sole Proprietorship is a type of business organisation made up of many owners.

4. Accounting is the process of classifying financial (events).

5. A calendar year is the accounting period used by abusiness.

6. A debit increases an asset account balance while a credit decreases an asset account balance.

7. Debits do not always have to equal credits.

8. A cash accounting method is the recommended one for a business to use for recording its transactions (events).

9. Net income results when expenses exceed revenues for aperiod.

TRUE FALSE

Match ‘em up!

1-72-8

3-104-95-46-27-18-69-5

10-3

1. False2. True

3. False4. False5. True6. True

7. False8. False9. False

True or false?

10

9

8

7

6

5

4

3

2

1

SOLUTIONS