Is Your Company Eligible to File AFS in iXBRL format with the CIPC?
The iXBRL format has been there for almost three years now. It was back in 2018 that the CIPC mandated the submission of annual financial statements in the iXBRL format. However, it wasn’t until 2019 that the CIPC rolled out the second phase of the iXBRL mandate with the updated IFRS taxonomy. This is why there are some concerns about the eligibility criteria of firms required to submit AFS in the iXBRL format.
So let’s find out whether your company can file AFS in the iXBRL format.
To comply with the Companies Act 71 of 2008 (as amended), all companies, businesses, and enterprises must make the correct determination regarding their eligibility to file AFS in the iXBRL format.
Companies falling in the below categories are required to submit AFS in iXBRL format:-
- All public companies registered in South Africa.
- Companies with an explicit MOI (Memoranda of Incorporation) stating to audit or voluntarily audit their AFS.
- Companies whose PI (Public Interest) score is 350 or more.
- Companies and corporations that hold assets in a fiduciary capacity for persons unrelated to them, and the aggregated value of such assets exceed R5 million at any time during the financial year.
Furthermore, companies that voluntarily audit their AFS based on a shareholder’s resolution or board decision must file in the iXBRL format.
Note:- Companies who have their AFS independently reviewed but are not obligated to submit their AFS in the iXBRL format can still do so if they wish.
What Happens If You Don’t Comply for iXBRL?
Suppose your company falls in the aforementioned categories but doesn’t submit the AFS in the iXBRL format within the stipulated time. In that case, the CIPC assumes that the company is closed or inactive. Consequently, CIPC will initiate the deregistration process, which will eradicate your company’s name from the database. The legal effect of the deregistration is that the said company will cease to exist.
Does Your Company Fall Under Any of the Above-mentioned Categories?
If so, you must adhere to the compliance requirements of the CIPC to avoid deregistration, hefty penalties, and possible legal actions.
Therefore, as an eligible firm, you need a dependable iXBRL service provider to help you comply with the CIPC’s latest requirements. By partnering up with a global leader like DataTracks, you can stay on top of your iXBRL filings by leveraging their quality and error-free services.
For more information about iXBRL solutions, please speak to a DataTracks expert @ +27-10-446-9061.