CIPC iXBRL Requirements and Factor Involved in Evaluating Company’s PI Score
Mandated from 1st July 2018, companies in South Africa must file their Annual Financial Statements (AFS) with CIPC in iXBRL format. iXBRL or Inline eXtensible Business Reporting Language is a digital reporting system made readable for humans and machines. The primary motive behind iXBRL is the retention of the original formatting of the source document while creating an XBRL document.
However, there are certain requirements laid down by CIPC for filing AFS and report generation by companies, which include:-
- If the company has a Memorandum of Incorporation (MOI) that prescribes the financial statements to be audited, it must submit its AFS with CIPC.
- In the case of a private or personal liability company, if the value of assets that it holds for people not related to the company exceeds R5 million in the given financial year, it needs to submit its AFS.
- A private or personal liability company that prepares its AFS internally and has a PI score of 100 or more needs to submit its AFS.
- A private or personal liability company that prepares its AFS by an independent party (for instance, an external accountant) and has a PI score of 350 or more needs to submit its AFS.
A private or personal liability company which is not managed by its owners and hasn’t opted to get its AFS audited may be subject to an independent review in any one of the following cases:-
- The company’s AFS is compiled internally, and the PI score is less than 100.
- The company’s AFS is compiled independently, and the PI score is between 100 and 349.
Private and personal liability companies that do not meet the requirements of filing AFS with CIPC can voluntarily file their audited statements with their annual returns. If companies opt not to file a complete set of financial statements, they are required to file a Financial Accountability Supplement (FAS) with their annual return.
As witnessed above, the company’s PI score plays a vital role in determining whether it needs to file its AFS or not. But what is a PI score? And what are the factors involved in evaluating a company’s PI score? Read on to find out.
Factor Involved in Evaluating Company’s PI Score for CIPC filing:
The Public Interest Score or PI score determines the public interest in your company. It is calculated based on some financial and non-financial parameters or factors, which include:-
- Average Number of Employees
The number of points equal to the average of employees in a company during the 12 months making up a financial year is allocated.
- Third-Party Liability
At the financial year-end, one point is assigned for every R1 million (or portion thereof) in third-party liability of the company.
One point is allotted for every R1 million (or portion thereof) in the company’s turnover during the given financial year.
- Beneficial Interest
For a profit company, one point is allocated to every individual who has a direct or indirect beneficial interest in the company’s securities. Whereas, for a non-profit company, one point is assigned to every member of the company or a member of the member association of the company.
The Way Towards Compliance Reporting
If your company is mandated to file its AFS in iXBRL format with CIPC, you must obtain professional services to ensure compliance reporting. Enter DataTracks.
Being in business since 2005, DataTracks has prepared more than 200,000 compliance reports for more than 19,900 clients. So if you are considering a trusted partner that ensures quality and reliability in their iXBRL filing services, DataTracks can be your ideal choice. To know more about iXBRL requirements of CIPC and PI score of a company, speak to a DataTracks expert @ +27-10-446-9061 or visit the DataTracks website.