- Our Case
The legal and strategic mandate for submission of AFSs to the CIPC is prescribed by the Companies Act, No. 71 of 2008, as amended by Companies Act 3 of 2011 Section 30 Annual Financial Statements and Regulation 30 Annual Financial Statement makes provision for submission of AFSs. Regulation 30 (5) (a) specifically mentions the Commission must establish a system to review AFSs with the objective of monitoring compliance with the Act According to Section 6 (13)(a)(iii) the system to be established by the Commission may use any means of electronic communication, to facilitate the automated filing of any information contemplated by the Act. This includes a determination to use XBRL
Obtain data which can be entered automatically into systems without re-keying, re-formatting or other "translation" effort;
Dramatically reduce costs by automating routine tasks
Quickly and automatically identify problems with filings;
Analyse and compare data much more quickly, efficiently and reliably, and can benefit from the use of software in validation and analysis;
Monitor data and activities and reach judgements with far greater speed and confidence;
Focus effort on analysis, decision-making and dealing with counterparties rather than on data manipulation;
Provide a much faster and focused response to counterparties;
Will eventually provide one common standard of reporting to all regulators in South Africa, meaning the same set of annual financial statements will be re-usable. Elimination of duplications and differences in reporting to various regulators will be achieved.
By using XBRL, companies and other producers of financial data and business reports can automate the processes of data collection. For example, data from different company divisions with different accounting systems can be assembled quickly, cheaply, and efficiently if the sources of information have been upgraded to using XBRL.
Entities who prepare financial statements: More efficient preparation of financial statements because they will be created one time and rendered as printed reports, as other regulatory filings;
Analysts, Investors, and Regulators: Enhanced distribution and usability of existing financial statement information. Automated analysis, significantly less re-keying of financial information from one form into another form, receiving information in the format you prefer for your specific style of analysis;
Financial publishers and data aggregators: More efficient data collection lowers operating costs associated with custom, idiosyncratic data feeds and reducing errors while concentrating on adding value to the data and increasing transaction capacity
Independent Software Vendors: Virtually any software products that manages financial information could use XBRL for its data export and import formats, thereby increasing its potential for full-interoperability with other financial and analytical applications.
XBRL can be applied to a very wide range of business and financial data. Among other things it can handle:
Company internal and external financial and business reporting;
Business reporting and exchange of information within all types of regulators, including tax and financial authorities, central banks, and governments;
Filing of loan reports and applications;
Credit risk assessments;
Authoritative accounting literature, providing a standard way of describing accounting documents provided by authoritative bodies.
Every reporting entity will be required to have XBRL-capable software in place for compiling of AFS data in XBRL format, according to the CIPCs published taxonomy. The CIPC has established a Software Service Provider (SSP) Panel to assist client entities with their selection of software solutions to facilitate interfacing with the CIPC. A number of SSPs have been assessed in terms of their software solutions and services they offer to reporting entities.
A list of recommended SSPs has been published on the CIPCs website. Reporting entities are encouraged to engage with the recommended SSPs for provisioning of client-side solutions. Client entities are under no obligation to only use software and services provided by panel members, but the panel members are recommended, because they demonstrated adherence to the minimum technical requirements of the CIPC.
A number of business related documents have been published on the CIPCs website (e.g. Frequently Asked Questions and Filers Guidelines), aimed at explaining various aspects and requirements of the Programme. Technical documents and the prescribed taxonomy are also published on the CIPC website (www.cipc.co.za) under the “XBRL Programme”menu.
These documents include for instance clarification on:
The entities required to comply to the XBRL mechanism of submission;
The exact reporting requirements in terms of statements, disclosures, mandatory data elements and validation rules;
Technical requirements (e.g. the prescribed taxonomy and relevant tagging rules when using the taxonomy).
The CIPC selected and notified around 100 large JSE listed companies to be part of a pilot test phase starting in February 2018. The purpose of pilot testing is to test functionality of both the CIPCs portal for uploading of AFSs via XBRL, as well as the client-side software used by the companies for producing AFSs in XBRL format.
Pilot companies can use any valid set of statements of any previous year, because submissions during the pilot phase will only be used for testing and will be discarded from the CIPC system before live roll-out of XBRL.
The CIPC published a list of pilot companies on the website. Companies not part of the official list are welcome to participate on a voluntary basis.
As from 1 July 2018, all qualifying entities will be required to submit their latest available approved/audited statements on the first date of submission applicable to them. The first date for XBRL submission for every entity is determined by the anniversary date of their date of incorporation. The calculation of the first date of submission of a particular entity is different for close corporations and companies. The exact regulations that apply to every entity to calculate their particular first date of submission, and the applicable financial year for first submissions, have been published on the CIPC website.