The Impact of Stage 6 Load Shedding on CIPC iXBRL Filers
The majority of 2022 was considered a “dark period” for South Africa. The country experienced one of the worst load-shedding periods, with 205 days of power outages. The South African economy faced huge consequences after the 2022 power cuts. Several businesses gave in to the effects of load shedding, indicating its devastating impact on the country’s economy, which had already been negatively affected by the Covid-19 pandemic.
CIPC and iXBRL preparation were also not immune to the effects of load shedding and faced several challenges in the wake of power outages. The following blog discusses how stage 6 load shedding in South Africa has impacted business and their iXBRL filing with CIPC.
Load Shedding Scenario in South Africa
Since 2020, South Africa has been experiencing brief periods of load shedding. Several industries in the country had to adjust to the difficulties of endless power cuts. Recently, power utility Eskom warned that load shedding would be pushed to stage 6 indefinitely, owing to the failure of more generating units at its power units. It will continue until the supply and capacity issues have been resolved.
Read – Impact of Load Shedding on Small to Large Businesses
Load shedding in these three years has impacted businesses of all sizes. Since electricity is vital for production, load shedding has affected organisations’ day-to-day activities. While some businesses reported payment issues due to poor network connections, others had to incur additional costs to run generators. Several businesses have closed their doors due to the inability to survive constant power outages.
Most small businesses are highly dependent on electricity for their operations. According to a survey, 71% of small businesses have been adversely affected by load shedding and require alternative power sources. Large businesses in South Africa have been trying to shift to alternative forms of energy, such as wind and solar, to decrease their reliance on Eskom’s services. However, it has not helped alleviate pressure from Eskom.
Challenges Faced by CIPC During Load Shedding
The current load-shedding situation in South Africa has affected the CIPC’s ability to reach all service turnaround times. Since computers and data are affected by load shedding, the call centre’s ability to render effective services has been negatively impacted.
According to the CIPC, the relevant back-office staff is working to resolve the delays caused by load shedding. Furthermore, it urged customers to log faults on the Query Resolution System for speedy resolutions of issues.
Impact of Load Shedding on Accounting and Audit Firms
Accounting and audit firms that carry iXBRL preparation in-house have faced several challenges during the power crisis. Since iXBRL is a digital language, electricity is at the heart of iXBRL filing with CIPC. Incessant power cuts make it difficult for accounting and auditing companies to carry out their operations and file iXBRL reports for their clients. While accountants and auditors are experienced and well-equipped for preparing financial statements, converting them to iXBRL format may be challenging amidst South Africa’s load-shedding scenario.
Learn why Auditing Firms in South Africa Choose DataTracks Rainbow iXBRL Software for smooth AFS to iXBRL tagging and conversion.
iXBRL Solution? Outsource Your iXBRL Preparation to DataTracks!
Companies in South Africa face severe challenges in converting their financial statements to iXBRL format in the current scenario. Even companies (medium and large scale) that have winded up their operations in the last year, which are dormant, must prepare and file their iXBRL reports. Power outages have made it difficult for businesses to file their AFS reports with CIPC before deadlines, leading to several fines and penalties. Moreover, companies face an increased risk of data thefts and burglaries during electricity cuts. This is where outsourcing your iXBRL needs to a trusted vendor like DataTracks can come in handy.
Read – The Benefits of Outsourcing the iXBRL Service in South Africa.
- DataTracks, a global leader in disclosure management software and service, is well-equipped to handle iXBRL preparation for companies suffering from load shedding.
- The company is certified for ISO 27001:2013 for information security management to ensure data security.
- DataTrack’s iXBRL Software is hosted in the cloud, offering enterprise-class robustness and scalability. Scalability allows multiple concurrent users with different authorities to collaborate on the same document.
- DataTracks ensures the timely delivery of reports before deadlines.
- The experts at the company have 18 years of rich experience and have prepared 348,000 compliance reports for more than 23,400 clients.
So what are you waiting for? Contact an expert at +27-10-446-9061 or email email@example.com TODAY to streamline your CIPC filing!