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Johannesburg - While the SA Institute of Professional Accountants (Saipa) welcomes government's decision to postpone the new Consumer Protection Act and the Companies Act until April 2011, it warned businesses to make sure they are prepared for the new legislation.
Ettiene Retief, professional accountant and chairperson of Saipa's National Tax Technical Sub-Committee said the department of trade and industry (dti) had indicated it was busy finalising regulations that would give effect to both Acts, and the postponement would allow time for more consultation with stakeholders before implementation.
"This is important because there is no way companies can prepare themselves for implementation unless they know exactly what the regulations for these Acts will require," Retief said.
The delay was "unfortunate" because there were many positive aspects to the new legislation.
However, Saipa would rather see "proper implementation" than hiccups in the absence of required regulations and systems.
Retief said it was "encouraging" that the dti wanted to give stakeholders a chance to comment on the regulations, especially considering the far-reaching nature of some of the changes to come.
"With around six months to go until the new laws come into effect, Saipa is encouraging organisations to find out how they will be affected by the new Acts and to make appropriate preparations."
Retief said businesses had the luxury of the extra time to familiarise themselves with the implications to be brought about by the new laws, which would bring changes to various areas from pricing, marketing and warranties (in terms of the Consumer Protection Act), to financial reporting, liabilities and duties of directors, new companies are incorporated and operated (under the new Companies Act).
Both Acts were available for download from the relevant government websites.
"This is a golden opportunity for business owners to read the new Acts and study the articles written on them," Retief said.
Leaving it any later than this was opening companies to risks and possible penalties for which ignorance of the new laws would be no excuse.
Ettiene Retief, professional accountant and chairperson of Saipa's National Tax Technical Sub-Committee said the department of trade and industry (dti) had indicated it was busy finalising regulations that would give effect to both Acts, and the postponement would allow time for more consultation with stakeholders before implementation.
"This is important because there is no way companies can prepare themselves for implementation unless they know exactly what the regulations for these Acts will require," Retief said.
The delay was "unfortunate" because there were many positive aspects to the new legislation.
However, Saipa would rather see "proper implementation" than hiccups in the absence of required regulations and systems.
Retief said it was "encouraging" that the dti wanted to give stakeholders a chance to comment on the regulations, especially considering the far-reaching nature of some of the changes to come.
"With around six months to go until the new laws come into effect, Saipa is encouraging organisations to find out how they will be affected by the new Acts and to make appropriate preparations."
Retief said businesses had the luxury of the extra time to familiarise themselves with the implications to be brought about by the new laws, which would bring changes to various areas from pricing, marketing and warranties (in terms of the Consumer Protection Act), to financial reporting, liabilities and duties of directors, new companies are incorporated and operated (under the new Companies Act).
Both Acts were available for download from the relevant government websites.
"This is a golden opportunity for business owners to read the new Acts and study the articles written on them," Retief said.
Leaving it any later than this was opening companies to risks and possible penalties for which ignorance of the new laws would be no excuse.
