How is the iXBRL Mandate in South Africa Impacting the Finance Industry?
In recent times, significant digitisation developments have been witnessed in almost every sector in South Africa; finance is no exception. The introduction of iXBRL has impacted the financial reporting supply chain.
To enhance the financial reporting format from initial data recording to submission of annual financial statements and data analysis, the CIPC has streamlined the entire process. Let’s see how these streamlining efforts of CIPC have impacted the finance industry.
1. Financial Reporting has Gone Electronic
Companies don’t need to prepare their annual financial statements and submit them over the counter anymore. Since the introduction of iXBRL, all the AFSs are submitted online via the CIPC portal. So the entire financial reporting process has gone electronic.
This saves time and resources that would otherwise have been allocated to prepare on-paper annual financial statements and their successful submission.
2. Collating and Furnishing Financial Data has become Easier
This initiative from the CIPC has allowed accountants and tax preparers to collate, prepare, analyse, and furnish financial data effectively.
How? Preparing financial statements requires collating data from multiple reports, including the profit and loss statement, income & expense account, trial balance, etc. In the pre-iXBRL era, the collation of this data used to be manual.
However, since the introduction of iXBRL, everything has been digitised. The highly integrated and robust iXBRL software allows linking and collating financial data efficiently, saving accountants and financial firms both time and money.
3. iXBRL Allows Consistent Comparison of Financial Data
Earlier, comparison of financial data used to be a challenge for companies and other users of financial information, including tax regulators, stakeholders, etc. However, a significant improvement in comparability can be witnessed in the post-XBRL adoption period.
iXBRL softwares available in the market are providing consistent comparability between financial data from different accounting/financial periods, enhancing financial statement structural comparability.
4. Accuracy has Become More Visible
Earlier, there was no way to determine the accuracy and interpretability of annual financial statements other than the matching balances of assets and liabilities. However, in the post-iXBRL era, due to the smaller and less comprehensive quantity of data stored in iXBRL format, the issue of identifying errors in annual filings has been resolved.
By leveraging the quality checks offered by agile and robust iXBRL softwares, companies can now prepare error-free AFS.
An Agile and Flexible iXBRL Software is What You Need
By partnering with a reputable iXBRL service provider like DataTracks, you can not only have access to error-free financial reports but also boost the efficiency of the process. Boasting a commendable experience of over 16 years in the industry, DataTracks has successfully delivered 1,95,000+ compliance reports. What’s more, DataTracks provides an iXBRL solution that is updated with both IFRS and GRAP taxonomies, catering to the conversion needs of all eligible entities in South Africa.
For more information about their iXBRL solution, please speak to a DataTracks’s expert @ +27-10-446-9061 or email @ firstname.lastname@example.org.