Effective 1st July 2018, the Companies and Intellectual Property Commission (CIPC) mandated that qualifying entities file their Annual Financial Statements (AFS) in a new format named Inline XBRL (iXBRL). This new format replaces the need to file a PDF document with the CIPC. All qualifying entities are also required to file their Annual Returns (AR) apart from filing their AFS in iXBRL format.
The CIPC deployed the “AR-hard stop” directive on September 1, 2018, as there were instances when entities filed their AR without filing the AFS in iXBRL format. This prevents the submission of the AR unless either a valid set of AFS or Financial Accountability Supplements (Fass) is submitted.
This rule had to be rolled back on 4th September 2018 as the Annual Returns Calculator was not included as part of the newly developed online process on the CIPC portal. As of 1st October 2018, this rule is now back in place as the AR Calculator has been included as part of this mandate. Henceforth, all qualifying entities are required to submit their AFS/FAS ahead of filing the Annual Returns. For more information about this rule, please check the CIPC notice 62.
Submitting the right documents on time is very important to all qualifying entities because as per the CIPC notice 52, not abiding by this rule may cost companies up to 10% of the company turnover.
Feel free to reach out to us should you need any assistance with your CIPC AFS filings.