The Companies and Intellectual Property Commission (CIPC) has mandated that from the 1st of July 2018 all qualifying entities will be required to submit their annual financial statements through iXBRL on the same day when they file their annual returns.
iXBRL (Inline XBRL) is a development of XBRL, where the main enhancement is centered around the electronic rendering of financial information encoded in an XBRL document. XBRL is a technology standard for the electronic communication of business and financial data which is being implemented in an increasing number of countries around the world. It provides major benefits in the preparation, analysis and communication of business information. It also offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using financial data.
The advantage of implementing iXBRL for the Companies and Intellectual Property Commission (CIPC) will result in the operational efficiency and regulatory effectiveness compared to the current human intervention of manual calculations that would normally be prone to mistakes or missing key facts within the annual financial statements.
An entity will be required to file its annual financial statements through iXBRL if any one of the following criteria has been met:
- The entity has a Memorandum of Incorporation that prescribes filing of audited financial statements;
- The entity is a private or personal liability company if, in the ordinary course of its primary activities, it holds assets in a fiduciary capacity for persons who are not related to the company, and the aggregate value of such assets held at any time during the financial year exceeds R5 million;
- The entity is a private or personal liability company that compiles its annual financial statements internally and the entity has a Public Interest Score (PIS) of 100 or more; and
- The entity is a private or personal liability company that has its annual financial statements compiled by an independent party and the entity has a Public Interest Score (PIS) of 350 or more.
Other than the above criteria required the following entities will be required to submit their annual financial statements through iXBRL:
- All public companies
- Private companies based on the qualifying criteria above
- State owned companies
- Non-profit entities
If an entity does not meet one of the required criteria’s and is not a required entity, and the entity falls in the scope of voluntary audit or independent review it can either voluntary submit their annual financial statements in iXBRL format or submit the CoR30.2 Financial Accountability Supplement.
For further information regarding the submission of annual financial statements in iXBRL format refer to the following guide “CIPC XBRL Filers Guidelines pertaining to Business Aspects Version 1.1” on the Companies and Intellectual Property Commission (CIPC) website.
This article is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted (E&OE)
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