Original Research

Riglyn 4.003 vir inkomstebepaling: 'n Teoretiese beoordeling

I. J. Lambrechts, P. Van Eeghen
South African Journal of Business Management | Vol 15, No 1 | a1105 | DOI: https://doi.org/10.4102/sajbm.v15i1.1105 | © 2018 I. J. Lambrechts, P. Van Eeghen | This work is licensed under CC Attribution 4.0
Submitted: 23 October 2018 | Published: 31 March 1984

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I. J. Lambrechts, Departement Bedryfsekonomie, Universiteit van Stellenbosch, South Africa
P. Van Eeghen, Departement Bedryfsekonomie, Universiteit van Stellenbosch, South Africa

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Guideline 4.003 for income determination: A theoretical evaluation
During the last few years the distribution and realization principles began to play an increasingly important role in literature. The income of an organization is increasingly viewed as the cash amount that can be withdrawn without hampering the continuity of ongoing action. The purpose of an income system, like the South African guideline 4.003, is to render an index of the income which can be utilized for expansion and/or distribution. There is always a reasonably large optimism and trust in the reliability of guideline 4.003 to accomplish this. The present article highlights some weaknesses of guideline 4.003 which cannot be ignored. These weaknesses are related to the assumption regarding the realization of purchasing income on loans, the calculation of net monetary assets and liabilities, the calculation of loss of purchasing power on distributable income and depreciation and the revaluation of equity capital of the balance sheet. A complete distribution of income according to guideline 4.003 is therefore not always without problems for continuity and is also not necessarily a reliable point of departure for a divided policy during inflation.


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