CIPC iXBRL Mandate
According to a directive issued by the Companies and Intellectual Property Commission (CIPC) on July 1, 2018, the companies in South Africa were mandated to publish their annual financial statements (AFS) in a structured data reporting format using the Inline eXtensible Business Reporting Language (Inline XBRL) format.
Digital reporting in the form of iXBRL will allow companies to file their annual financial statements in a more organized manner.
Co-operatives In South Africa
Since 2005, the South African government aimed to regulate and promote co-operatives through the Co-operatives Act 2005, which was further amended by the Co-operatives Amendment Act 2013.
We must understand what the word ‘co-operative’ stands for and its types.
What is a co-operative?
The term ‘co-operative’ refers to a business in which a group of people with common needs come together voluntarily. They form a co-operative to solve needs that one person cannot address on their own.
Types of co-operatives
Based on the number of people involved there are 4 broad types of co-operatives, namely:
| Primary Cooperative | A primary co-operative must be formed by a minimum of either five natural persons, two juristic persons, or a combination of any five persons. |
| Secondary Cooperative | A secondary co-operative must be formed by two or more operational*
primary co-operatives. |
| Tertiary Co-operative | A tertiary co-operative must be formed by two or more operational*
secondary co-operatives. |
| National Apex Cooperative | A national apex co-operative must be formed by three operational sectoral tertiary co-operatives (operating on a national level) and five operational multi-sectoral tertiary co-operatives (operating on a provincial, district, or local level). |
| * Operational here means a co-operative that has held an annual general meeting and has submitted the annual report (either audited or independently reviewed) to the registrar in its financial year. | |
CIPC iXBRL Mandate – For South African Co-operatives
Now that we are clear with what CIPC iXBRL mandate is and who the co-operatives are, we can look for what CIPC iXBRL mandate brings in for the South African Co-operatives. All co-operatives have been notified by the CIPC to file their annual reports with the registrar as well as their annual financial statements in iXBRL format.
To prepare co-operatives, CIPC came up with a pilot testing process beginning from April 1, 2022. This pilot testing shall:
- Prepare the South African Co-operatives for future compulsory filing.
- Help CIPC in refining their taxonomy as per the feedback of the filers.
Starting from 1st October 2022, all co-operatives will be obliged to file their AFS in iXBRL format to comply with the CIPC iXBRL mandate.
Categories Of Co-operatives
Based on the annual revenue generated the above-stated types of co-operatives are further categorized, as follows:
| Primary Co-operatives | |
| Category ‘A1’ | Annual revenue is less than R1 million |
| Category ‘A2’ | Annual revenue is at least R1 million but less than R10 million. |
| Category ‘B’ | Annual revenue is at least R10 million but less than R25 million. |
| Category ‘C’ | Annual revenue is more than R25 million |
| Secondary, Tertiary, And National Apex Co-operatives | |
Understanding The Level Of Reporting
Once the co-operatives are clear about the category they fit in. It is now time to understand what needs to be reported. This section talks about the annual submission of Forms required by the CIPC and the related applicable documents.
| Classification | Annual Submission of |
| Primary Co-operatives
Category ‘A1’ |
Form CO-OP 7 |
| Form CO-OP 8 | |
| Form CO-OP 15.1 (must be completed by the Board of Directors) | |
| Primary Co-operatives
Category ‘A2’ |
Form CO-OP 7 |
| Form CO-OP 8 | |
| Form CO-OP 15.2 (must be completed by the Board of Directors | |
| Primary Co-operatives
Category ‘B’ |
Form CO-OP 7 |
| Form CO-OP 8 | |
| An independent reviewer must be appointed and Form CO-OP 4 must be submitted containing particulars of the appointment | |
| Primary Co-operatives
Category ‘C’ |
Form CO-OP 7 |
| Form CO-OP 8 | |
| An auditor must be appointed and Form CO-OP 4 must be submitted containing particulars of the appointment | |
| Secondary, Tertiary, And National Apex Cooperatives | Form CO-OP 7 |
| Form CO-OP 8 | |
| An auditor must be appointed and Form CO-OP 4 must be submitted containing particulars of the appointment |
Details Of The Forms:
| FORM TYPE | DESCRIPTION | APPLICABLE DOCUMENTS |
| Form CO-OP 7 | Annual submissions to Registrar of financial statements and statements | Audited report/ Independently Reviewed report/ Annual Report |
| Correction or revision of error or misstatement in Audited / Independently Reviewed/ Annual Report | ||
| NOTE: Form CO-OP 7 must be submitted to the registrar together with the applicable documents within 15 days after the Annual General Meeting. | ||
| Form CO-OP 8 | Annual submissions to Registrar
(Annual return) |
Annual information regarding the co-operative to be provided accurately |
| Annual fees payable by co-operatives | ||
| NOTE: Form Co-op 8 must be submitted together with Form Co-op 7 within 30 days. Failing to submit within the said 30 days period
The annual Fees would increase. |
||
| Form CO-OP 15.1 | Annual return category A1 Primary Co-operative | Statement of Financial Position (Balance Sheet) |
| Income Statement | ||
| Form CO-OP 15.2 | Annual return category A2 Primary Co-operative | Members’ Responsibilities and Approval |
| Accounting Officers’ Report | ||
| Members’ Report | ||
| Statement of Financial Position (Balance Sheet) | ||
| Income Statement | ||
| Statement of Changes in Members’ Shares and Reserves | ||
| Statement of Changes in Cash Flows | ||
| Accounting Policies | ||
| Notes to the Financial Statements | ||
| Form CO-OP 4 | Notice of appointment of auditor/reviewer and consent to act as or resignation by and removal of auditor/independent reviewer | |
Annual Return Fees to be paid by Co-operatives
Lastly, it becomes imperative to know the prescribed tariff and penalty fees that need to be paid by the South African Co-operatives when filing with the CIPC.
| Primary Co-operatives | ||
| CATEGORY | TARIFF
(submit their annual returns within 30 days of the due date) |
PENALTY FEE
(submit their annual returns after 30 days of the due date) |
| Category ‘A1’ | R50 | R100 |
| Category ‘A2’ | R50 | R100 |
| Category ‘B’ | R450 | R600 |
| Category ‘C’ | R3000 | R4000 |
| Secondary, Tertiary, And National Apex Co-operatives | ||
| CATEGORY
(subdivision based on Annual Revenue) |
TARIFF
(submit their annual returns within 30 days of the due date) |
PENALTY FEE
(submit their annual returns after 30 days of the due date) |
| Less than R25 million | R450 | R600 |
| More than R25 million | R3000 | R4000 |
With iXBRL introduced in South Africa, it has been a good five years for CIPC and they are leaping towards a healthy business environment.
