Does CIPC suggest iXBRL instance for the Digital Future?
“Technology takes processes of yesterday and makes it simpler, faster, accessible, and more cost-efficient.”
South Africa has become among the few countries to carry innovation in financial reporting using cutting-edge technology. It has standardized the financial data of all public and qualifying entities and made it accessible to investors, regulators, and other stakeholders.
The Companies and Intellectual Property Commission (CIPC) introduced and mandated the use of iXBRL format, a digital financial reporting system, when submitting the Annual Financial Statement (AFS) from 1st July 2018. iXBRL instance meaning – is an Inline eXtensible Business Reporting Language designed to deliver business information in a format that benefits preparation, analysis, and communication of the data.
CIPC’s drive toward digitization
Traditional methods using paper-based or PDF reports manually checked by the regulators leave much room for errors and non-compliance. The CIPC cannot efficiently manage the annual reports generated by all the companies combined. It leaves them with little or no time to analyze the financial data and turn it into meaningful information for the stakeholders or to investigate non-compliant cases.
As a result, the CIPC leaped forward and drove the reporting system toward the digital era. It mandated the reporting of AFS and the annual financial reports in iXBRL format.
Power of iXBRL instance:
iXBRL is a powerful technology for corporate reporting and has been widely adopted in different countries. It has made financial information readable and accessible without wasting time and money. It offers many potential benefits to the preparers and consumers, with the hope of fully automating reporting from the company to regulators, auditors, and agencies.
Companies will no longer have to submit different reports to different regulators, and it does not have to be prepared manually, making the report free of duplication and inconsistency. CIPC can achieve its mission of better regulatory compliance and transparency for investors. More manpower can now be dedicated to the crucial task of analyzing industry trends and the economic growth of the country.
Bringing the change in our system
Like any new regulation, this too might seem like an administrative burden on the companies if the benefits are not fully understood. Once companies understand the ease of reporting and efficiency that comes with iXBRL instance meaning, they will realize that it is worth the effort.
DataTracks is one such company evaluated and approved by CIPC as iXBRL software service provider. It is a pioneer in providing regulatory reporting worldwide and has delivered over 172,000 iXBRL instance documents so far. We can make your company transition free of hassle with a team of experts, assured quality, and cost-effectiveness.