New CIPC Update: Deprecation of 2016 & 2019 Taxonomy Entry Points on 1 July 2023
Companies that have been preparing iXBRL reports for some time now know the importance of CIPC taxonomies in preparing their reports. Since the iXBRL roll-out in South Africa on 1st July 2018, the Companies and Intellectual Property Commission (CIPC) updated the iXBRL taxonomy entry points annually. Preparers use these taxonomy entry points to file Annual Financial Statements (AFS).
CIPC released the latest taxonomy entry point on 1st October 2022, with minor validation changes. Currently, even the older taxonomy entry points are used to file AFS. However, recently, CIPC announced that the 2016 and 2019 taxonomy entry points would be deprecated on 1st July 2023.
Refer to CIPC Notice No 3085: https://www.cipc.co.za/wp-content/uploads/2023/02/48104-24-2-NationalGovernment.pdf.
Why? Let’s find out.
Why are 2016 and 2019 Taxonomy Entry Points Getting Deprecated?
Section 29 of the Companies Act, 71 of 2008 (as amended) requires companies to provide financial statements to any person for any reason by satisfying the financial reporting standards as to form and content. The following are the additions to the latest CIPC taxonomy released in 2022:
- Generally Recognised Accounting Practice (GRAP Standards)
- Changes made by the IFRS Foundation to align with the updated IFRS and IFRS for SMEs reporting standards
- Entry points for co-operatives filing
Therefore, to remain aligned with the latest financial reporting standards prescribed by the IFRS Foundation, the 2016 and 2019 taxonomy entry points will be deprecated in July 2023.
Important Considerations in the Taxonomy Deprecation Update
- Companies that have to submit their outstanding annual financial statements for years 2019/20 and 2020/21 can still use 2020 and 2021 taxonomy entry points. This is because the financial years in question would require disclosures regulated by the reporting standards applicable during that financial year.
- GRAP filers are not affected by the 2016 and 2019 taxonomy deprecation.
The Way Forward
The regular updates to CIPC taxonomy can prove to be an added compliance burden for companies in South Africa. But the same is not true for the experts in iXBRL filing. If you have been familiar with the 2016 and 2019 taxonomy entry points and find it difficult to move towards the 2022 taxonomy, DataTracks can be your right choice! With 18 years of experience, the professionals at DataTracks have in-depth knowledge and expertise in adapting to the latest CIPC updates.
By staying abreast with the latest CIPC regulations and taxonomy updates, DataTracks professionals have prepared more than 348,000 reports for 23,400+ clients in 26 countries. So if you are looking for error-free reports with the latest taxonomy entry points, contact an expert @ +27-10-446-9061 or email email@example.com TODAY! To get regular CIPC updates, subscribe to the DataTracks blog @https://www.datatracks.com/za/cipc/blog/.