3 ways to make your iXBRL CIPC submission easy
The CIPC, in July 2018, made it compulsory for all qualifying entities to file their Annual Financial Statements (AFSs) in the iXBRL reporting standard. Companies earlier used to submit their annual financial statements to CIPC in the PDF format. All qualifying entities will also have to file their yearly returns apart from filing their Annual Financial Statement in the iXBRL format. But many companies are not comfortable with this change.
If you are one of those people concerned about submitting your iXBRL CIPC returns, this article will help you to make your iXBRL CIPC submission easy.
Your iXBRL CIPC will turn up according to the amount of effort you put into planning to follow the CIPC directive. Certain steps determine whether you qualify for submitting your returns like your company’s Personal Interest Score or the PI Score. Your PI Score determines your eligibility for filing your AFS with the CIPC. The latest directive from CIPC Annual Return HardStop requires all entities to submit their AFS/FAS (Financial Accountability Supplement) ahead of filing their annual returns. You will have to pay ten percent of your company’s turnover if you don’t follow this directive. Hence, plan early and make a roadmap about how you will go about with following CIPC obligations.
Plan your calendar:
Companies often prefer outsourcing iXBRL conversions in the first year of the commencement of a new mandate. You should set aside a couple of weeks to review your iXBRL tagging if you decide to outsource your iXBRL conversions. If you choose to make the process in-house, get started early and learn XBRL. It will need about a week’s training and about 1-2 months of preparation and review of XBRL. Thus, try allocating one-fifth of the time for review and approval of all stakeholders.
Plan your budget:
Your budget planning is critical financial planning and CIPC compliance. Your budgetary requirements determine whether your iXBRL conversion stays in-house or gets outsourced. Thus, your budget will vary on your chosen strategy. An in-house process will need a higher budget. Evaluating your plan by early-2019 would be ideal.
Besides, you should also check your business requirements. If you decide to file your CIPC returns yourself, you will need a fit-for-purpose staff. Bring onboard a team that has a sound understanding of finance. It should also have a working knowledge of the IFRS standards. Following the tips mentioned above will make iXBRL CIPC filing less of a hassle. Try following it to make your life easy.