Since July 2018, South Africa’s Companies and Intellectual Property Commission mandated that all eligible entities are obligated to submit their Annual Financial Statements (AFSs) in the iXBRL format. Before this mandate, the AFSs were submitted by the companies in PDF format.
The operational efficiency and regulatory effectiveness of the CIPC were getting hindered due to the unstructured PDF format of the AFS, hence the transition.
Companies that are required to file AFS in the iXBRL format include:-
● All public companies
● Qualifying private companies
● State-owned companies
● Non-profit entities
● Qualifying closed corporations
Governance of State-Owned Companies
A state-owned company means an enterprise or organisation that is registered in terms of the Companies Act as a company or either:-
● Listed as a public entity as pr the PFMA (Public Finance Management Act); or
● Owned by a municipality as contemplated in the Municipal System Act, 2000
Along with mandatory filing for state-owned, non-profit companies, and domestic entities, CIPC also announced voluntary filing for companies that are not a part of the filing criteria. The challenge that state-owned companies were facing was that their financial statements were being according to the GRAP (Generally Recognised Accounting Practice) standard. However, the AFSs that are submitted to the CIPC in the iXBRL format is based on the IFRS.
Transparency and Disclosure of AFS
Since the introduction of a new mandate by the CIPC, the state-owned companies that unable to submit AFS in the iXBRL format can now do so in the GRAP standard-based AFSs.
W.e.f. October 1, 2020, state-owned companies whose financial statements were based on GRAP may voluntarily submit their AFS in the iXBRL format.
Furthermore, an audit is required in case:-
● A non-profit company is directly or indirectly incorporated by the state, an organ of the state, a state-owned company, an international or a foreign state entity.
● A non-profit company was incorporated primarily to perform a statutory regulatory function or to carry out a public function at the direction of an organ of the state, a state-owned company, an international entity, or a foreign entity for the purpose ancillary to any such functions.
For Error-free and Quality iXBRL Submission, Seek Professional Guidance.
All state-owned companies must make this transition as soon as possible, as, from October 2021, the submission of GRAP-based financial statements will be mandated. To make this transition smoother, companies can partner up with reputable iXBRL service providers like DataTracks. Boasting of an extensive experience of 15+ years and a robust iXBRL solution, DataTracks can help you comply with the new filing requirements of the CIPC with accuracy and high authority.
To know more about the iXBRL services, please speak to a DataTracks expert @+27-10-446-9061 or write to email@example.com