CIPC has mandated the use of using inLine eXtensible Business Reporting Language (“iXBRL”) when submitting Annual Financial Statements (“AFS”) effective from 1 July 2018.
CIPC is currently receiving Annual Financial Statements and Financial Accountability Supplements in a PDF Format and some as Web Forms, and in order to align with international best practises and to ensure effective implementation of their mandate (as prescribed in Regulation 30 (5)), CIPC is introducing the electronic reporting solution as a way of introducing efficiencies to their administration of Annual Financial Statements and Financial Accountability Supplements.
According to Section 6 (13): The Commission may – (a) establish a system using any means of electronic communication, to facilitate the automated – (i) filing of any information contemplated by the Act or by any legislation listed in Schedule 4 or; (b) accredit an established system that – (ii) is capable of facilitating any activity contemplated in paragraph (a); and (iii) satisfies any prescribed requirements.
As from 1 July 2018, all Annual Financial Statements, where applicable, must be submitted to CIPC via iXBRL. If any of the following criteria apply to the entity, you need to comply if your entity:
- has a Memorandum of Incorporation that prescribes filing of audited financial statements;
- 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;
- is a private or personal liability company that compiles its AFSs internally (for example, by its financial director or one of the owners) and that has a Public Interest Score (PIS) of 100 or more;
- is a private or personal liability company that has its AFSs compiled by an independent party (such as an external accountant) and that has a Public Interest Score (PIS) of 350 or more;
- Unless your entity has opted to have its Annual Financial Statements audited or voluntarily included audit as part of its Memorandum of Incorporation (MOI), a private or personal liability company that is not managed by its owners may be subject to independent review if:
- It compiles its AFSs internally and its Public Interest Score is less than 100; or
- It has its AFSs compiled independently and its Public Interest Score is between 100 and 349.
As the new iXBRL system for filing of Annual Financial Statements requires that multiple reports be submitted together (e.g. ARs and AFSs) in one data file containing all date required for reporting as iXBRL version 1.1 tagged data embedded in a single XHTML file, we will obviously spend more time on the filing of Annual Financial Statements per entity and an additional fee will be charged when submitting Annual Financial Statements.
Kindly contact Henzel to ensure compliance on 012 346 4343 or by e-mail for a competitive quote at services@henzel.co.za
