South Africa is currently going through major changes in political, social and other
arenas. It is therefore appropriate to consider the effect of these developments on
financial reporting in a changing environment. This paper explores the origins of
the current South African accounting system, given its status as a developing
country, and endeavours to show that financial reporting needs to be amended to
reflect the changing face of the South Africa's social fabric, its status as a
developing country, as well as the emergence of new users of financial statements. Certain recommendations are made to address these issues.