The FRIP is an advisory panel of accounting experts formed as a joint initiative of the JSE and SAICA 

Johannesburg, Monday 18 November 2013 â€" The South African Institute of Chartered Accountants (SAICA) together with the Johannesburg Stock Exchange (JSE) are pleased to announce that Prof. Linda de Beer will be taking over the reigns as the new chairman of the Financial Reporting Investigation Panel (FRIP) effective 1 January 2014. Prof. Linda de Beer will be replacing Prof. Harvey Wainer who has been the chairman of the FRIP since its inception in 2002.

Prof. de Beer, an independent director and corporate governance advisor, is also a visiting professor in Accounting and Auditing at the University of the Witwatersrand.  She has a wealth of experience in International Financial Reporting Standards (IFRS), having held the position of Senior Executive: Standards at SAICA and as a current member of the Financial Reporting Standards Council. Her ongoing practical exposure to IFRS as audit committee member and non-executive director have also ensured that she is exposed to the implementation of IFRS in business and helps her to keep abreast of developments in the IFRS landscape. 

Sue Ludolph, Project Director of Financial Reporting at SAICA explains that the FRIP is an advisory panel of 16 accounting experts and was formed as a joint initiative of the JSE and SAICA. Its role is to investigate and advise the JSE on alleged cases of non-compliance with IFRS in annual and interim reports as well as any other company publications.

“Under Prof. Wainer’s leadership, the FRIP considered approximately 50 separate cases. Its advice to the JSE has played an invaluable role in improving financial reporting in South Africa, and the results of the investigations have in certain instances, affected the financial reporting of virtually all of the listed companies on the JSE and also contributed to necessary changes in IFRS,” says John Burke,  Director of Issuer Regulation at the JSE.

He explains that in line with the principles of good corporate governance, after more than a decade at the helm, Prof. Wainer has decided to retire from the FRIP, effective 31 December 2013. “The JSE and SAICA would like to express their gratitude to Prof. Wainer for the years of dedication and service.”

According to Burke, since its launch, the FRIP has fulfilled a valuable role in the monitoring the compliance of IFRS. The FRIP continues to play an important role as an advisory body to the JSE.

Ludolph, when bidding farewell to Prof. Wainer and welcoming Prof. de Beer on board, said she believes Prof. Wainer’s strong leadership role of the FRIP is the reason why South Africa is consistently ranked number one in the world by the World Economic Forum’s Global Competitiveness Index for the strength of its financial reporting and auditing standards and especially the JSE for its number one regulatory status. “SAICA believes that Prof. de Beer is the perfect candidate to take the legacy of Prof. Wainer forward.’’

On her new role, Prof. de Beer commented “I was involved with establishing the FRIP, then GAAP Monitoring Panel, in 2002 in my previous role at SAICA.  From its inception the intention was not for the FRIP to fulfil a draconian policing function, but instead to act as a deterrent from non-compliance with IFRS.  Financial directors and audit committees are conscious of the FRIP when making financial reporting and disclosure decisions, especially in grey areas within IFRS. The fact that an independent panel of accounting experts might challenge an interpretation is reason enough for companies to err on the conservative and transparent side. This is not only showing that the FRIP is fulfilling the role that it is meant to as a deterrent, but also that it is adding to the quality of financial reporting in South Africa, which is of utmost importance for the integrity of our markets and foreign investment in our country.  I am honoured by this appointment and grateful for the ground breaking work that was done by Prof. Wainer, the JSE and SAICA in the past decade.”

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