Overcoming Challenges of Reporting iXBRL Financial Statements to CIPC
Since the mandatory introduction of iXBRL in 2018, South Africa based companies have been facing several challenges related to filing AFS to the CIPC. Companies are focused on the immediate task of complying with the CIPC’s mandatory requirements but are thrown off track by the short-term challenges that iXBRL brings.
However, the long term implication of iXBRL should not be ignored by finance and tax functions. The adoption of iXBRL has provided real opportunities to transform compliance, reporting, and accounts productions. For that, if some challenges have to be overcome along the way, so be it.
Let’s help you overcome these common iXBRL reporting challenges.
- iXBRL Tagging Is Complicated
There are many values in a financial statement, and every figure needs to be accurately tagged. Tagging them manually is a tedious and time-consuming task. However, an investment in an iXBRL software solution can take care of these technical details and make financial reporting quick and efficient.
- Multiple Tagging Can Be Tedious
A single value in a financial statement may represent multiple facts corresponding to different periods or concepts. In such cases, the same piece of data needs to be tagged multiple times.
For instance, while representing Earning Per Share (EPS), the disclosure is reported twice. Once while recording basic EPS and second while providing a footnote explaining how it was calculated.
So the same value needs to be tagged multiple times by nesting tags in the iXBRL document. This can seem overwhelming if you have no prior experience working with iXBRL.
Find someone who has prowess and an in-depth understanding of every intricacy in iXBRL. Whether you choose to hire an in-house expert on an outsource service provider, ensure that they have the requisite software requirements in place to handle multiple accounts at once.
- Scaling Numeric Values Can Result In Inaccurate Information
A financial statement is full of numeric values, and these figures are often scaled to make them more readable. For instance, the consolidated income statement may present figures in millions, whereas another financial report may present values in thousands.
This often results in inaccurate calculation or misrepresentation of financial data.
Solution? Specify the scale to which these values are reported so they can be converted into the correct value when iXBRL data is extracted.
Don’t Worry About These Challenges, Simply Outsource
A dependable and reputed iXBRL partner like DataTracks is all you need. DataTracks is a global leader in iXBRL conversion services and can prove to be the ideal iXBRL partner. Boasting an experience of 16+ years, DataTracks has successfully delivered over 1,95,000 compliance reports, which means their financial experts have witnessed and overcome every iXBRL challenge in the book.
Reach out to a DataTracks expert TODAY @+27-10-446-9061 or drop an email at email@example.com and make your iXBRL filing hassle-free and efficient.