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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 from Covid-19 forced the CIPC to roll out the second phase of the iXBRL mandate quicker than planned and in combination with the updated IFRS taxonomy. 

The objective, of course, was to accomplish the long-standing goal of gathering and analyzing accurate financial information and instill 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 the process of converting AFS to iXBRL and how to make it smooth.

  • Timely Submission of iXBRL Reports is Financial Reporting 101

To ensure a glitch-free submission, put in efforts before implementation and preparation. You first need to determine if your company is eligible to 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 are required to file AFS in the iXBRL format. 

 

  • Chalk Out the Budget

The next action 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 a software for iXBRL conversion. However, make sure you conduct due diligence on the vendor, so you get nothing but error-free and timely submission.

 

  • 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 in place. This can help you crimp out the rest of the timeline related to the amount of 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 in place to ensure your service provider is submitting your reports on time.

 

What should be your rule of thumb when it comes to setting a 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’re outsourcing 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 the reign of 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, 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 enquiry@datatracks.co.za.

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