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, Gripping GAAPTwentieth Edition
Cathrynne Service CA (SA)
BCompt (Hons) (C.T.A.) (UNISA) CA (SA)
University of Queensland
Acknowledgements and thanks:
Special thanks must go to:
Professor Dave Kolitz (from the University of Exeter) and
Gordon Adams CA (SA) (from the University of the Western Cape)
Aarthi Algu, Vanessa Gregory and Kerry-Less Gurr (from the University of KwaZulu-Natal)
Súne Diedericks and Suzette Snyders (both from the Nelson Mandela University)
Yusuf Hassan (from KPMG Technical)
Yusuf Seedat (from PWC Technical)
Bongeka Nodada, Mulala Sadiki, Sue Ludolph, Sandy van der Walt, Juanita Steenkamp and
Ewald Muller (from SAICA)
Heather de Jongh and Tara Smith (from KPMG)
Thank you for your valuable advice, suggestions and interpretations in the past.
Chief editing and technical review of this 2019 edition done by:
Steffen Wies, Sahil Bhaanprakash, Sohil Singh, Sian Mudaly
From University of KwaZulu-Natal
Georgina Patten-Service
From Nelson Mandela University
Gordon Adams
From University of Western Cape
Thank you to a super-dedicated and very talented team for your enthusiasm and expertise.
Editing of layout and formatting done by:
Michelle Guy, Roger Sowden, Guy Sowden
Thank you, too, for your expertise and the long, long hours!
Chief editing and technical review of prior editions done by:
Steffen Wies, Sian Mudaly, Jyoti Maharaj, Thabiso Mtshali, Farnaaz Shaikjee (from University of KwaZulu-Natal)
Justin Logie and Andile Ngwenya (from University of the Witwatersrand).
Arson J. Malola and Ayanda Ngwenya (from University of the Witwatersrand)
Jyoti Maharaj and Iman Moosa (from University of KwaZulu-Natal)
Gordon Adams (from University of the Western Cape).
Muhammad Muheeb Buckas; Muhammad Shihaab Buckas; Andile Ngwenya;
Yusuf Seedat; Farnaaz Shaikjee; and Khaya Sithole.
Khaya Sithole, Troy Halliday, Zaheer Bux, Errol Prawlall, Thivesan Govender, Deepika Panday,
Kamantha Vengasamy, Vidhur Sunichur, Zahra Moorad, Johannes Rice and Yusuf Seedat.
Tanweer Ansari, Trixy Cadman, Aphrodite Contogiannis, Zaid Ebrahim, Susan Flack, Haseena Latif,
Daleshan Naidoo, Thabo Ndimande, Dietmar Paul, Kate Purnell, Johannes Rice, Yusuf Seedat and Khaya Sithole.
Albertus Louw, Ayanda Magwaza, Trixy Cadman, Carla Tarin, Jade Archer, Marc Frank and Adrian Marcia.
Khaya Sithole, Ruan Gertenbach, Carla Tarin, Jade Archer, Fathima Khan,
Susan Flack, Preshan Moodliar, Prekashnee Brijlall, Nikky Valentine.
Ruan Gertenbach, Susan Flack, Gareth Edwardes, Artur Mierzwa, Nabilah Soobedaar, Nikky Valentine,
Prekashnee Brijlall.
Warren Maroun, Byron Cowie, Mahomed Jameel Essop, Nasreen Suleman,
Daveshin Chetty, Steve Carew, Justin Cousins, Jarrod Viljoen and Craig Wallington.
Warren Kemper, Byron Cowie, Gary Klingbiel, Alastair Petticrew, Catherine Friggens, Kerry Barnes and
Shiksha Ramdhin.
Tiffiny Sneedon and Ryan Wheeler.
Dhiren Sivjattan and Clive Kingsley.
Trixy Cadman, Phillipe Welthagen and Tarryn Altshuler.
Maria Kritikos, Lara Williams, Praneel Nundkumar, Brian Nichol, Pawel Szpak and Craig Irwin.
i
, Gripping GAAP First edition: 2000
Second edition: 2001
Third edition: 2002
Fourth edition: 2003
Fifth edition: 2004
Sixth edition: 2005
Seventh edition: 2006
Eighth edition: 2007
Ninth edition: 2008
Tenth edition: 2009
Eleventh edition: 2010
Twelfth edition: 2011
Thirteenth edition: 2012
Fourteenth edition: 2013
Fifteenth edition: 2014
Sixteenth edition: 2015
Seventeenth edition: 2016
Eighteenth edition: 2017
Nineteenth edition: 2018
Twentieth edition: 2019
© 2019
ISBN softback 978 0 6390 0119 7
e-book 978 0 6390 0133 3
Copyright subsists in this work. No part of this work may be reproduced in any form or by any
means without the publisher’s written permission. Any unauthorised reproduction of this work
will constitute a copyright infringement and render the doer liable under both civil and criminal
law.
Whilst every effort has been made to ensure that the information published in this work is
accurate, the editors, authors, publishers and printers take no responsibility for any loss or
damage suffered by any person as a result of the reliance upon the information contained
therein.
Suggestions and comments are most welcome. Please address these to:
The author: Cathrynne Service Via Facebook:
• Accounting 911 by Kolitz and Service
Via LexisNexis:
• See contact details below
The publisher: LexisNexis Web address: www.myacademic.co.za
Mobi address: www.myacademic.mobi
Postal address:
LexisNexis
215 Peter Mokaba Road
Morningside
Durban 4001
Disclaimer
This text has been meticulously prepared, but in order for it to be user-friendly, the principles,
application thereof and disclosure requirements have been summarised.
This text should therefore not be used as a substitute for studying, first-hand, the official
International Financial Reporting Standards, including their interpretations.
ii
, Gripping GAAP
Dedication
This book is once again dedicated to my very dear family and friends!
Writing it would simply not have been possible without
my parents, Roger and Jillianne,
who continually keep the home fires burning during the endless months of writing, and
my loving sons Roger and Guy
who have been extremely patient and understanding throughout.
And a sincere thanks to Scott for all your support and encouragement!
Too numerous to mention, are the rest of my family and friends,
who have all been subjected to the same boring excuse
‘sorry – I’m busy with my book …’.
And to my team of guardian angels who not only inspired this book but who have
provided me with the guidance and the super-human strength
that it has taken to update each year.
And finally, I wish to dedicate this book to those for whom I wrote it: You!
I sincerely wish that my book sheds the necessary light as you
fervently study towards your ultimate goal of
joining our country’s ranks of
‘counting mutants’
Our country needs you!
(‘counting mutants’ is a reference to accountants in the quirky comedy:
Mr Magorium’s Wonder Emporium)
iii
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