How are iXBRL reports filed with the CIPC?
The Companies and Intellectual Property Commission (CIPC) of South Africa have developed an online eServices portal that is used to accept Annual Financial Statements (AFSs) from entities in the iXBRL format. Users can log in and authenticate themselves to enter the CIPC eServices portal from where they can proceed to upload their AFS.
Validations are run on these AFSs on the portal against the CIPC taxonomy and filers receive an email notification apprising them about the status of their submission (whether accepted or rejected). In case there is a rejection due to a validation error, users can expect to receive a report with the exact cause of rejection and will need to resubmit their AFS to the portal.
Filers are expected to rectify the data before resubmitting it to the CIPC when an upload has been rejected by the automated validation system. In case of issues with rectification or technical problems with the portal itself, the CIPC assists by email.
What are the components of a CIPC iXBRL report?
There are 3 components to the preparation of an iXBRL report and submission with the CIPC:
- An IFRS-based taxonomy that defines the financial facts reported on the face of the AFS enabling it to be tagged using iXBRL tags
- A platform or solution to tag and validate financial data per the taxonomy above allowing the AFS to be exported in iXBRL for onward publication with the CIPC
- CIPC’s eServices web portal to upload the iXBRL-based AFS for validation and analysis
The main focus of the CIPC taxonomy is to cover the reporting requirements of domestic entities as prescribed by the Companies Act, 2008. The IFRS taxonomy has been in use since March 2016 along with some requirements specific to South Africa.
Tagging an AFS iXBRL comprises tagging all applicable facts in the Primary Financial Statements (PFSs) as well as a bunch of disclosures and explanatory notes. Accounting policies, Company Secretary’s report, Director’s reports and responsibility statements, auditors and reviewers reports and corporate governance reports can only be block tagged. There are 61 Existence Assertion data elements common to all entities and mandatory to report. Omitting any of these will result in the swift rejection of a report.
Having the right solution is extremely crucial to a successful filing with the CIPC and companies should spare no efforts in trying to find one that matches their requirements. Let’s take a look at the alternatives available to filers to convert AFSs into iXBRL for submission to the CIPC.
What options do filers have with regards to CIPC iXBRL conversion?
Depending on the resources companies are willing to employ, there are quite a few options available to them for preparing CIPC iXBRL reports:
- If competent resources are available to companies inhouse, they may want to opt for a customized software package incorporating the CIPC iXBRL taxonomy that allows for tagging of their financial data against the defined taxonomy
- Some companies may feel the need to employ external help for the preparation and final generation of their CIPC iXBRL report where they send in their financial statements in a non-XBRL format (like Word or PDF) for iXBRL tagging
- In the case of a company already using a third-party solution for accounting or disclosure management, your vendor of choice may already have an option to export financial data to the iXBRL format
- Full integration into existing enterprise solutions used by companies can also be provided by select vendors so that existing workflows are not disturbed
The CIPC requires eligible entities to file their iXBRL reports 30 business days after the end of
the financial year. Close Corporations get 60 days to make the same submission. Companies usually plan around these year end activities to ensure a filing that is free of any hiccups and passes with the CIPC in one go. Using the right solution can expedite this process substantially.
Both in-housing and outsourcing have their pros and cons, but while the needs and requirements of every company are different, outsourcing the creation of your AFS in iXBRL has been seen to be the least cumbersome and most time-efficient way of filing your report to the CIPC. So let’s look at why outsourcing can be a very compelling option.
Why is outsourcing CIPC iXBRL conversion a no-brainer?
Preparing financial statements in the iXBRL format requires the combined and synchronized efforts of a lot of people who need to be apprised and updated at every stage of the report generation process. While it’s possible to form internal teams for this activity, it often takes a lot of resources to train people and given the infrequency of submissions, may not make a lot of financial sense to a company over the long term.
Hiring specialists who know the requirements of the company and understand the entire filing process can often speed up the report generation activity and deliver high-quality results for them. Here are a few reasons companies may consider outsourcing their CIPC iXBRL reporting:
- It can allow companies to focus on core activities and free up resources for other tasks
- Outsourcing allows companies to run leaner teams allowing for long term cost-effectiveness
- It can aid and promote the growth of a company as more people involve themselves in revenue-generating activities
- It allows for flexibility in staffing and teams can be grown or shrunk without a hassle based on changing requirements
- Shield against high attrition rates by providing the required level of consistency and continuity to the company’s activities thereby reducing risk
Having seen the advantages of an outsourced model, let’s take a brief look at why IRIS CARBON® may be the right choice for your organization.
What are the USPs of IRIS CARBON® for CIPC iXBRL reporting?
IRIS Business Services, a leading global provider of compliance solutions, has developed the iXBRL reporting platform for the CIPC in partnership with XDS. The CIPC has chosen IRIS’ validator product to ensure the highest standards of submissions by screening the quality of all filings submitted to CIPC. Synonymous with quality and speed, you can rest assured that you’re buying into an ecosystem that is trustworthy and highly reliable for all your CIPC iXBRL filing needs. When you sign up with us, you will find:
- Unparalleled iXBRL quality
- 24×7 customer support
- Constant platform updates
- Cloud-based solution for smooth collaboration
- Smart AI/ML-enabled tagging
- Easy last-minute edits
- Smart-Review for faster resolutions
- Integrated iXBRL Viewer