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 Annual Fee 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. 

To ensure that you meet regulatory obligations for your CIPC iXBRL filings, IRIS CARBON® offers an easy and hassle-free solution that generates high-quality reports.

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