The Broad-Based Codes of Good Practice were launched in 2007 and provided a framework for measurement of Broad-Based Black Economic Empowerment (BBBEE) in terms of the BEE Act 53 of 2003. On 11 October 2013 an amendment to the codes was published.

The amended codes included a transitional period during which companies could prepare for measurement under the amended codes. The original transitional deadline was 12 October 2014. This deadline was extended on 18 March 2014 to 1 May 2015. Effectively, all measured entities must use the amended codes as a basis for measurement.

The amended codes apply to Exempt Micro Enterprises (EME), Qualifying Small Enterprises (QSE), and Generic Sized Entities (GSE).

Click here to view the SAIBA adopted Code of Ethics for Professional Accountants
To retain its status as a controlling body for accountants, accounting officers and independent reviewers and the members licences to perform regulated work for clients, SAIBA members are required to obtain 4-hours of ethics CPD annually.

EME's old vs new codes
In terms of the previous codes, EMEs were required to obtain an EME certificate from an accounting officer stating whether the EME did in fact qualify as such.

The new codes, effective from 1 May 2015, state that verification as an EME is no longer dependent on obtaining a certificate issued by an accounting officer. The thresholds determining whether an entity qualifies as an EME has also been amended.

Under the new amended codes an EME is only required to obtain a sworn affidavit from the owners/manager on an annual basis confirming the following:

  • Annual total revenue of R10 million or less
  • Level of black ownership

Any misrepresentation in terms of the above constitutes a criminal offence.

Under the new codes any enterprise with an annual turnover of R10 million or less qualifies as an EME.

An EME is deemed to have a B-BBEE status of level 4, with contributors having a B-BBEE recognition level of 100%. However, an EME that is 100% black owned qualifies for elevation to a level 1 contributor, having a B-BBEE recognition level of 135%. An EME that is at least 51% black owned qualifies for elevation to a level 2 contributor having a B-BBEE recognition level of 125%.

Verification of QSEs and Government Sponsored Entities (GSEs) may only be performed by either a South African National Accreditation System (SANAS) accredited verification agency or an Independent Regulatory Board of Auditors (IRBA) accredited auditor. Accounting officers may not issue verification certificates for these types of entities.

Accounting officers under the new code
A BAP(SA) may assist a client seeking assistance with obtaining an EME affidavit and additional confirmation by acting as a Commissioner of Oaths.

As from 1 May 2015, EMEs were able to submit an affidavit attesting to its EME status. This affidavit must be taken in front of a Commissioner of Oaths. Accounting officers that are registered with the Southern African Institute for Business Accountants (SAIBA) as Business Accountants in Practice (SA) are recognised as Commissioners of Oaths and may therefore assist clients in this manner.

Steps to performing an oath are available here

EME Affadavit
Members are not allowed to issue any B-BBEE certificate. The new codes only require an entity to submit an affidavit in respect of its EME status. A BAP(SA) can act as Commissioner of Oath.

Members are not allowed to use own stationery when assisting a client to complete an affidavit, the template on The DTI’s web site are the only legal form of affidavit that is allowed for B-BBEE.

Members are not allowed to complete the Affidavit for a client and must follow the rules applicable to Commissioner of Oaths when commissioning an affidavit for a client.

Take note that failure to comply with above mentioned might lead to fines to the member / practice.

Confirming ownership and turnover independently from the EME affadavit
Some EME clients may, in addition to obtaining an EME Affidavit, request a BAP(SA) to confirm ownership and turnover.

This additional confirmation performed by the BAP(SA) must be performed in terms of ISRS 4400.

However the BAP(SA) does not issue a BBBEE certificate as the EME is exempted from obtaining a BBBEE certificate as only a EME affidavit is required.

The ISRS 4400 report is a factual findings report that a client my request from the BAP(SA) and does not form part of the BBBEE codes or regulations and has no binding effect.

The report issued in terms of ISRS 4400 may not refer to the BBBEE level and only has reference to the turnover and ownership of the entity.