What is a Public Interest Score
The public interest score also known as the PI Score determines whether a company should be audited or have an independent review performed on its financials.
It will also determine who should be responsible for compiling the financials as this must be performed by an independent person.
Regulation 26 of the Companies Act enforces reporting standards to align to the PI Score categories for compilation, auditing and independent review purposes.
Frequently asked questions
What are public interest points
A PI Score is an indication of your company's level of public interest. The amount of attention your company gets from the public determines how much regulation and financial reporting is needed.
How to calculate public interest score
A point is awarded for each of the following:
- A point for the number of employees (Each employee)
- A point for each stakeholder with a beneficial interest in the company
- One point for every million rand (or part thereof) in turnover
- One point for every million rand (or part thereof) in third party debt
Who is legally required to calculate a PI Score?
Regulation 26 of the companies act requires every company to calculate its PI Score. This PI Score must be calculated at the end of each financial year when financial statements are prepared.
What is the public interest score for Independent Review?
Public interest scores below 350. This applies when:
- The Independent review is selected voluntary
- Non-owner managed entities
- Entities required by their professional bodies or legislative reasons to have an Independent review
- The owners specifically stipulate this as a requirement in the MOI
What is the public interest score for a non profit organization
Non-Profit Companies: One point is allocated for every individual who, at the end of the financial year, is known by the company to be a member of the company or a member of an association that is a member of the company.
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