What happens to your B-BBEE Compliance Targets if you make a financial loss?
Three elements on the B-BBEE Scorecard use Net Profit After Tax (NPAT) to calculate the Compliance Targets: Enterprise Development, Supplier Development and Socio-Economic Development.
By Jackie Kitching and Zahn Abreu
14 Feb 2021
09:53
Image: Shutterstock
Three elements on the B-BBEE Scorecard use Net Profit After Tax (NPAT) to calculate the Compliance Targets: Enterprise Development (ED) (1% of NPAT), Supplier Development (SD) (2% of NPAT) and Socio-Economic Development (SED) (1% of NPAT). These three elements constitute 20 points (excluding 2 bonus points) on the Generic Scorecard.
In the event that a Measured Entity does not make a profit during their financial period, or if the profit is less than a quarter of the industry norm, the Amended Codes of Good Practice (Codes), together with recommendations from SANAS, dictate the steps required in order for the Measured Entity to determine its NPAT Compliance Targets for ED, SD and SED.