In early 2018, South Africa’s Companies and Intellectual Property Commission (CIPC) brought a new dimension to effective reporting with the Inline XBRL mandate for all entities required to submit their Annual Financial Statements (AFS’s). Other than time and cost benefits for regulators as well as the filers, this iXBRL mandate will give your investors the power to analyze and benchmark between multiple companies through transparency in reporting.
Fitment of iXBRL in Your Organisation’s Reporting Method
As a multinational corporation, you may be required to report multiple types of information for your stakeholders that are generally produced through complex computer systems, entered manually and highly prone to human error.
iXBRL was developed to overcome these inefficiencies and make better use of the information obtained through automatic validation of AFS data against the IFRS taxonomy. The rationale behind this was also to reduce the administrative burden of multiple submissions on businesses so that they can focus better on their core work.
Business intelligence applications will enable identification of industry trends and analysis that can be useful for organisations as well as to investors.
Common Problems Faced in implementing iXBRL
Organisations face major issues when trying to integrate this new reporting system within their own environment. Some of these issues are:-
- It is not viable to re-create piles of scanned PDFs manually into an electronic form.
- It can seem costly and require additional effort to learn and implement the process.
- Lack of user awareness in identifying the taxonomy to map the right information.
Why Software Service Providers are the Solution?
The challenge with high-style finance documents or scanned PDFs is that the scanner captures the physical document into a snapshot and treats all words and characters as ‘images’, rendering the PDF search engine worthless. In such cases, the probability of errors may also be too high. Letting experienced software service providers, like DataTracks, handle this tricky tagging and conversion will help organisations overcome their problem with scanned documents.
Depending on the approach you take towards iXBRL reporting, the solution automates the data process by eliminating the need to manually enter information and facilitating the compilation and audit of data. This is saving the organisation time and ultimately cost.
Taxonomy is the foundation of tagging data and has to be performed by trained professionals. Instead of training multiple employees in your organisation, why not let a team of experts who are committed to delivering high-quality financial reports do this for you?
Allow a service provider like DataTracks handle all these issues for you and you will be sorted when it comes to converting high-style finance documents into iXBRL format for regulatory reporting.
DataTracks is a pioneer in compliance reporting solutions and has been serving over 17,000 clients in the last 15 years. Over the years, the margin of error in reports produced by DataTracks has gone down to one of the lowest and high-quality adherence has been significant in the industry.
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