PKF (VGA) IS READY TO COMPLY WITH XBRL AND FINANCIAL ACCOUNTING SUPPLEMENT SUBMISSION TO CIPC
21 Sep 2018
PKF (VGA) will be one of few accounting firms ready to comply with the new CIPC requirements on annual submission reporting in XBRL format.
On 1 July 2018 CIPC rolled out the new XBRL reporting system. In short, all Annual Financial Statements need to be converted into the XBRL format and then uploaded on CIPC’s website when your business’s annual returns are lodged.
What is XBRL?
XBRL is the open international standard for digital business reporting, managed by a global not for profit consortium, XBRL International. They are committed to improving reporting in the public interest. XBRL is used around the world, in more than 50 countries. Millions of XBRL documents are created every year, replacing older, paper-based reports with more useful, more effective and more accurate digital versions.
In a nutshell, XBRL provides a language in which reporting terms can be authoritatively defined. Those terms can then be used to uniquely represent the contents of financial statements or other kinds of compliance, performance and business reports.
The change from paper, PDF and HTML based reports to XBRL ones is a little bit like the change from film photography to digital photography, or from paper maps to digital maps. The new format allows you to do all the things that used to be possible, but also opens up a range of new capabilities because the information is clearly defined, platform-independent, testable and digital. Just like digital maps, digital business reports, in XBRL format, simplify the way that people can use, share, analyse and add value to the data.
Who needs to comply?
In terms of Section 33 of the Act read together with Regulation 28, 29 and 30 of the Companies Regulations of 2011, the following entities must submit their AFS in XBRL with their annual returns:
- Companies whose Memorandum of Incorporation (MOI) or Articles of Association requires the auditing of their financial statements;
- Private or personal liability company, in the ordinary course of its primary activities, holding 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;
- Private or personal liability company that compiles the AFS internally (for example, by its Financial Director or its owner) and that has a Public Interest Score (“PIS”) of 100 or more;
- Private or personal liability company that compiles AFS by an independent party and that has a PIS of 350 or more; and
- Private or personal liability company not managed by its owners, which opted to have its AFS audited or voluntarily included audit as part of its MOI, may be subjected to an independent review if:
- It compiles its AFS internally and its PIS score is less than 100; and
- AFS compiled independently and its PIS is between 100 and 349.
This requirement is applicable to all CIPC submissions – with depth of analysis differing from client to client.
Thank you in advance for understanding that this additional submission on the XBRL system may result in additional time and fees. If you require any further information, please do not hesitate to contact us.
+Gerhard van Graan
PKF (VGA) CHARTERED ACCOUNTANTS