Co-operatives to File AFS in iXBRL Starting from October 2022
The Co-operatives Amendment Act, 2013 (“Amendment Act”) amended the Co-operatives Act, 2005 (“the Act”). The Amendment Act replaced the previous regulations with new regulations and principles of good governance. One of the Companies and Intellectual Property Commission’s (CIPC) functions, amongst other regulatory functions, is to comply with the provisions of the Act.
In line with the co-operatives division, CIPC notified co-operatives to submit their annual reports with the registrar and file annual financial statements in iXBRL format. The voluntary filing of AFS in iXBRL has begun from 1st April 2022. All co-operatives will be mandated to file AFS in iXBRL starting from 1st October 2022.
To understand the XBRL filing requirements of co-operatives, some questions need to be answered:-
- Which categories of co-operatives need to comply with the provisions?
- What documents need to be submitted?
- What is the prescribed annual return fee by the co-operatives to CIPC?
Let’s find out the answers to the above questions.
Category of Co-operatives
The Act divides co-operatives into categories A, B, or C according to primary, secondary, tertiary, or national apex.
Primary Co-operatives
- Category A1
Annual revenue less than R1 million (Directors complete the annual report)
- Category A2
Annual revenue of at least R1 million but less than R10 million (Directors complete the annual report)
- Category B
Annual revenue of at least R10 million but less than R25 million (An independent reviewer completes the independently reviewed report)
- Category C
Annual revenue of R25 million or more (An auditor completes the auditor report)
All the secondary, tertiary and national apex co-operatives fall within Category C (An auditor completes the auditor report).
- All audited co-operatives, i.e., Category C – primary, secondary, tertiary and national apex, will be required to comply with these above provisions compulsorily from 1st October 2022. Additionally, co-operatives in Category B can submit their annual financial statements in iXBRL format with CIPC, though not mandatory.
Requirement of Documents to File AFS in iXBRL
A co-op must keep the following records or documents at its office for five years and more:-
- Accounting records, including all business transactions with members and non-members
- Minutes of the general meetings and director meetings
- Constitution, rules, and amendments
- List of members
- Register of directors
- Register of employees’ and directors’ interest in undertakings or contract
A co-op who fails to keep these records is guilty of an offence.
Fees for Filing Annual Returns by Co-operatives to CIPC
The prescribed fees to be paid by co-operatives to file annual returns with CIPC are as follows:-
- Category A1 and A2
R50 if lodged within 30 days of the due date and R100 for more than 30 days after the due date.
- Category B
R450 if lodged within 30 days of the due date and R600 for more than 30 days after the due date.
- Category C
R3000 if lodged within 30 days of the due date and R4000 for more than 30 days after the due date.
- Secondary, Tertiary, National Apex (less than R25 million)
R450 if lodged within 30 days of the due date and R600 for more than 30 days after the due date.
- Secondary, Tertiary, National Apex (R25 million or more)
R3000 if lodged within 30 days of the due date and R4000 for more than 30 days after the due date.
The Road Ahead
iXBRL aims at simplifying the accessibility, use, and analysis of financial data. Therefore, it has now required Category C primary, secondary, tertiary, and national apex co-operatives to file AFS in iXBRL to move towards a more structured financial reporting format. However, it can become quite challenging to file your AFS in iXBRL format while focusing on your core activities. Enter DataTracks…
With an experience of 17 years and 21,500 clients, DataTracks have expertise in providing high-quality, reliable iXBRL reports. So if you want to streamline your CIPC filing process, DataTracks can be your best pick.
Get in touch with an iXBRL expert @ +27-10-446-9061 or email at enquiry@datatracks.co.za.