How to Ensure a Smooth Process of AFS to iXBRL Conversion?
2019 and 2020 have been a really tough couple of years, considering the pandemic and all. Well, not just for you; the chaos subsequent to Covid-19 forced the CIPC to roll out the second phase of the iXBRL mandate quicker than planned and combined with the updated IFRS taxonomy.
The objective, of course, was to accomplish the long-standing goal of gathering and analyzing accurate financial information and instilling transparency by standardizing financial reporting. And AFS is a critical component of these financial reports. It is a comprehensive document that provides crucial information about the financial position of companies.
Therefore, to ensure XBRL error-free submission, users must understand;
AFS to iXBRL Conversion Process:
Timely Submission of iXBRL Reports is Financial Reporting 101
To ensure a glitch-free submission, put in the effort before implementation and preparation. You first need to determine if your company can file AFS in the iXBRL format as per the CIPC mandate. CIPC, the regulatory authority of South Africa, has issued a set of guidelines stating that only the entities that meet the PI score requirements must file AFS in the iXBRL format.
Chalk Out the Budget
The next step is to chalk out the budget and ascertain how much money you can invest or spare towards financial reporting. While doing that, remember that even a single omission or error can result in legal consequences. So it’s better to be on the side of caution, and for that, you need a trustworthy and dependable iXBRL partner or team, which brings us to the next point…
Choose Wisely Between Outsourcing and In-House iXBRL.
Once you have set out the budget, the next question you must answer is whether to set up an in-house iXBRL team or outsource the entire process and save yourself the hassle.
If you choose to set up in-house, you’ll need a well-qualified team of financial experts who have an in-depth understanding of iXBRL, CIPC taxonomy, and the tagging process. On the other hand, if you choose to outsource, you don’t need to worry about investing in a full-time team or software for iXBRL conversion. However, make sure you conduct due diligence on the vendor so you get nothing but error-free and timely submissions.
Don’t Rush; Give Yourself Time to Prepare the iXBRL Reports.
Irrespective of the path you choose to submit your iXBRL report, it’s always a good idea to have a calendar or deadline. This can help you crimp out the rest of the timeline related to the time your team needs to train and understand the process, the actual preparation, etc. And if you’ve outsourced the process, have a review calendar to ensure your service provider is submitting your reports on time.
What should be your rule of thumb when setting an iXBRL Filing timeline?
Usually, most service providers and companies try to start a month ahead of their submission deadline. However, you only need approximately one week to review the final iXBRL document if you outsource the preparation and conversion. This gives you enough buffer to tally everything and make changes if any.
Are you Looking for a Trusted iXBRL Partner?
Your search ends here with DataTracks. Over 16+ years, DataTracks has catered to the iXBRL preparation and conversion needs of over 19, 900 clients worldwide. Needless to say, DataTracks has financial experts on board that are well-versed in both IFRS and GRAP, which is essential to cater to the iXBRL conversion needs of all eligible entities in South Africa.
Want to know more about their services? Speak to an XBRL expert @ +27-10-446-9061 or email at email@example.com.