This prevents the submission of the AR unless either a valid set of AFS or Financial Accountability Supplements (FASs) is submitted. All qualifying entities are required to file an iXBRL document ahead of filing the annual Returns (AR). IXBRL requires tagging to be done on the annual report, https://1investing.in/ in this way the readers can see the layout of the annual report and also the XBRL tagged data. This approach is called ‘On-document tagging’, which makes the entire document not only highly machine-friendly but also readable by humans, thus making it more understandable and meaningful.

  1. The information is provided as a guide only and is not professional advice including legal advice.
  2. We understand and address the challenges of iXBRL preparation and support the transition to the new CIPC regulatory compliance.
  3. Additionally, it has improved the efficiency
    of attaching financial statements to the Corporation Tax return and Computation
    being sent to HMRC.
  4. DataTracks offers an iXBRL instance solution that includes both IFRS and GRAP standards.

In February 2022, the CIPC notified all co-operatives in South Africa to file their annual reports with the registrar along with their annual financial statements in the iXBRL reporting format. It becomes mandatory from 1st October 2022 for all co-operatives to comply with the CIPC iXBRL mandate. An iXBRL instance document is the file that includes the company specific business reporting information in a structured manner that computers can intelligently recognize and exchange. It is expected that instance documents will be created for individual financial reports (e.g., annual reports, earnings releases, submissions to creditors, etc.). In February 2016, the CIPC decided to standardize the financial reporting process by adopting iXBRL, a global digital reporting standard for business and financial information. This meant that once the standard was mandated, all entities filing their Annual Financial Statements in PDF format would be required to submit reports in iXBRL to the CIPC.

CIPC even mandates block-tagging of the accounting policies, director’s reports, director’s responsibility statements, independent auditors/reviewers reports, company secretary reports, corporate governance reports, and notes. This involves the full text given in the sections to be tagged as block text in the taxonomy. The iXBRL reporting format makes the whole financial data value chain more efficient, accurate, and useful, aiding in quick decision-making based on financial data. The CIPC deployed the “AR Hard-Stop” directive on September 1st, 2018 as there were instances when entities filed their AR without filing the AFS in iXBRL format.

iXBRL is in use around the world

Apart from this, entities would need to check their Public Interest score to confirm if they need to file with the CIPC. If you are yet to get started with the new CIPC mandate, the first thing to check is your PI score. Use our simple and easy-to-use PI score calculator to determine your eligibility to comply with this mandate. In February 2018, just a few months before the iXBRL mandate’s official start date, the CIPC announced a pilot program for companies. By April 2018, 55 companies had filed their AFS’ in iXBRL as part of the pilot program.

Who Needs To Submit Their AFS Using The iXBRL Reporting Format?

It was important for the CIPC to implement structured data reporting in South Africa to enable easier access and analysis of data. With rich experience working in the U.S., UK, Ireland, Italy, and Indian markets, we are very proud to be part of South Africa’s journey in transitioning from non-standardized financial reporting to standardized reporting. As South Africa prepares for the second phase of the mandate, IRIS will continue to extend its support and expertise to help entities, investors, and regulators in better governance. Starting in October 2020, the CIPC iXBRL mandate incorporated the Generally Recognized Accounting Practice (GRAP) standards, which would help South African state-owned enterprises (SOEs) prepare their financial statements in iXBRL.

The filing deadline was determined on the basis of the entity’s date of incorporation. Closed corporations were given a 60-day deadline and all other entities had to file within 30 business days from their date of incorporation. The new mandate was off to a successful start; however, there were some cases of non-compliance, which brought action from the CIPC. By implementing XBRL, the CIPC hopes to pioneer the eventual rollout of Standard Business Reporting (SBR) in South Africa, where various regulators can share data – the principle of “report once share many times”.

The final sample is shown in a different, more fully-featured iXBRL viewer, made available by the US Securities and Exchange Commission (SEC). Consumers have a free choice of tools for consuming and analysing iXBRL reports, a key benefit of using an open standard. Finding the right CIPC iXBRL solution provider could take some time, but we recommend that you research well before choosing rather than burning your fingers or falling into the wrong books of the CIPC. We have made things easy for you with our 6-point checklist using which you can choose the right CIPC iXBRL solution provider.

All you need is a compliance solutions vendor that commits to providing budget-friendly software and support without compromising on quality. The CIPC web portal authenticates issuers as users of CIPC e-Services as soon as they log in with their credentials. After the authentication, issuers may upload their files to the CIPC web portal. The CIPC portal will validate the uploaded AFS to ensure the machine-readable elements pertain to the latest CIPC taxonomy
The users will receive an e-mail informing them whether the submission was accepted or denied.

Companies need to develop a solid grasp of the CIPC taxonomy within their reporting teams. IXBRL tagging is the process of applying the entity’s unique financial data to an element within the taxonomy. The tagging process is performed during the creation of an instance document. This is where a reliable iXBRL solution provider like DataTracks can help you in XBRL reporting the error-free way.

After last year’s successful launch of Phase 1, CIPC is now going to roll out the second phase by October 1, 2019. This second phase will primarily involve updating the 2016 CIPC taxonomy to include the changes made to International Financial Reporting Standards (IFRS) taxonomy between 2017-and 2019. The CIPC also aims to improve the data quality and bring it on par with global trends followed by the European Securities and Markets Authority (ESMA) and the U.S. Under NPO Act 71 of 1997, Non-Profit Organizations (NPOs) must maintain proper accounting records. Sadly, about 67% of South Africa’s 2.23 lakh registered NPOs are non-compliant, failing to submit required reports.

DataTracks boasts of financial experts whose sole job is to stay up-to-date and help businesses comply with the latest requirements of the CIPC. So you don’t have to worry about XBRL compliance – DataTracks ensures that for you. With the transition to iXBRL made mandatory by the CIPC, companies express concerns related to exposure to legal liability. The submission of inaccurate financial data may lead to hefty penalties and even legal consequences. This is the major reason why businesses are stringent about outsourcing their iXBRL preparation to experts.

The Commission believes that the relevant XBRL taxonomies are sufficiently developed for use by BDCs, even if the BDCs use nonstandard elements more than the average operating company. You can clear more about the efforts to modernise corporate actions reporting on the XBRL US website. Click on the image to explore the full sample using the interactive viewer. This sample also demonstrates how text disclosures can be tagged as well as the numerical figures. An intuitive cloud-based solution streamlining your system of quality management.

The Companies and Intellectual Property Commission (CIPC) introduced and mandated the use of iXBRL format, a digital financial reporting system, when submitting the Annual Financial Statement (AFS) from 1st July 2018. IXBRL instance meaning – is an Inline eXtensible Business Reporting Language designed to deliver business information in a format that benefits preparation, analysis, and communication of the data. XBRL was adopted by the SEC for EDGAR filings in 2009 starting with public company financial statements using the U.S. Shortly after, the SEC adopted XBRL for mutual fund risk/return summary information using the U.S. Different reporting entities (whether they are companies, organisations or government agencies) prepare different reports, in accordance with relevant accounting standards. Even within peer groups, Company A’s financial statements will be different to Company B’s, according to their communication needs.

Full implementation of CIPC’s iXBRL mandate

Companies are focused on complying with the CIPC’s mandatory requirements but are thrown off track by the short-term challenges that iXBRL brings. On October 1, 2021, the CIPC developed an improved Data Quality Management (DQM) framework aimed at ensuring that the financial data collected from companies is of higher quality than that guaranteed by the CIPC’s iXBRL validations. The DQM uses specific metrics to measure the completeness, correctness, accuracy, and consistency of information published in the iXBRL reporting format. Globally, regulators and filers are leveraging the eXtensible Business Reporting Language (XBRL) to report business and financial information. Therefore, the inline eXtensible Business Reporting Language (iXBRL) format, which makes information both machine-readable and human-readable, came into existence. The primary objective of introducing iXBRL is to enable preparers to preserve the original view and formatting of the source document when generating an XBRL document.

iXBRL Tagging : All that you need to know

Some tax administrations have published their own taxonomies to support the return of tax assessment data. Easy-to-use online portal, assured by information security and data privacy. However, a slight inefficiency is that both Companies House
and HMRC usually require slightly different iXBRL documents to be produced. In addition to reviewing content, you will need to allow time for reviewing tags. Join our Newsletter mailing list tostay plugged in to the latestinformation about XBRL around the world. In the example below, an entity-specific taxonomy, known as an extension taxonomy, has been used to tag the specific operating segments included in the report.

Boasting an experience of 16+ years, DataTracks has successfully delivered over 1,95,000 compliance reports, which means their financial experts have witnessed and overcome every iXBRL challenge in the book. A financial statement is full ixbrl instance cipc of numeric values, and these figures are often scaled to make them more readable. For instance, the consolidated income statement may present figures in millions, whereas another financial report may present values in thousands.

Beyond financial reports

The transition from PDF annual reports to iXBRL documents modernizes the way South African companies communicate their data. It is an effort by the CIPC to align the AFS reporting process to globally-accepted standards. CIPC adopted the iXBRL reporting format to help businesses digitally submit their financial information with ease and efficiency and maintain transparency in the business environment.

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