How to Ensure a Smooth Process of AFS to iXBRL Conversion?

2019 and 2020 have been a really tough couple of years, considering the pandemic and all. Well, not just for you; the chaos subsequent to Covid-19 forced the CIPC to roll out the second phase of the iXBRL mandate quicker than planned and combined with the updated IFRS taxonomy.

The objective, of course, was to accomplish the long-standing goal of gathering and analyzing accurate financial information and instilling transparency by standardizing financial reporting. And AFS is a critical component of these financial reports. It is a comprehensive document that provides crucial information about the financial position of companies.

Therefore, to ensure XBRL error-free submission, users must understand;

AFS to iXBRL Conversion Process:

Timely Submission of iXBRL Reports is Financial Reporting 101

To ensure a glitch-free submission, put in the effort before implementation and preparation. You first need to determine if your company can file AFS in the iXBRL format as per the CIPC mandate. CIPC, the regulatory authority of South Africa, has issued a set of guidelines stating that only the entities that meet the PI score requirements must file AFS in the iXBRL format.

Chalk Out the Budget

The next step is to chalk out the budget and ascertain how much money you can invest or spare towards financial reporting. While doing that, remember that even a single omission or error can result in legal consequences. So it’s better to be on the side of caution, and for that, you need a trustworthy and dependable iXBRL partner or team, which brings us to the next point…

Choose Wisely Between Outsourcing and In-House iXBRL

With your budget set, you must decide whether to establish an in-house iXBRL team or outsource the process.

In-House Team: Setting up an in-house team requires hiring qualified financial experts with extensive knowledge of iXBRL, CIPC taxonomy, and the tagging process. This approach ensures full control over the reporting process but involves higher costs and resource allocation.
Outsourcing: Outsourcing the iXBRL process can save you from investing in a full-time team and software. However, it is crucial to conduct thorough due diligence on potential vendors to ensure error-free and timely submissions. Outsourcing can streamline the process and reduce the burden on your internal team.

Don’t Rush; Give Yourself Time to Prepare the iXBRL Reports

Irrespective of the path you choose to submit your iXBRL report, it’s always a good idea to have a calendar or deadline. This can help you crimp out the rest of the timeline related to the time your team needs to train and understand the process, the actual preparation, etc. And if you’ve outsourced the process, have a review calendar to ensure your service provider is submitting your reports on time.

Filing Your AFS with CIPC: A Step-by-Step Guide

Once your Annual Financial Statements (AFS) are ready in the iXBRL format, the next step is to file them with the Companies and Intellectual Property Commission (CIPC). Here’s a straightforward guide to ensure a smooth filing process:

Step 1: Access the CIPC eServices Portal

Register or Log In: Access the CIPC eServices portal. If you don’t already have an account, you’ll need to register one.

Step 2: Upload Your AFS

Navigate to the Submission Section: Find the AFS submission section within the portal.
Upload the Document: Upload your iXBRL document. Make sure the file meets all CIPC specifications to avoid any issues during submission.

Step 3: Receive Submission Confirmation

Confirmation Receipt: After successfully uploading your AFS, you will receive a confirmation from CIPC. Keep this confirmation as proof of submission for your records.

Compliance Tips

Stay Updated

Regulatory Changes: Regulatory requirements can change, so regularly check the CIPC website for any updates on iXBRL filing requirements.

Maintain Records

Documentation: Keep a copy of your submitted AFS and any correspondence with CIPC. This documentation can be crucial for future reference or in the event of a dispute.

Seek Professional Help

Consult Experts: If you’re unsure about any part of the process, consider consulting with a financial professional or an accountant who has experience with iXBRL filings. Their expertise can help you avoid costly mistakes.

What should be your rule of thumb when setting an iXBRL Filing timeline?

Usually, most service providers and companies try to start a month ahead of their submission deadline. However, you only need approximately one week to review the final iXBRL document if you outsource the preparation and conversion. This gives you enough buffer to tally everything and make changes if any.

Are you Looking for a Trusted iXBRL Partner?

Your search ends here with DataTracks. Over 19+ years, DataTracks has catered to the iXBRL preparation and conversion needs of over 28, 000 clients worldwide. Needless to say, DataTracks has financial experts on board that are well-versed in both IFRS and GRAP, which is essential to cater to the iXBRL conversion needs of all eligible entities in South Africa.

Want to know more about their services? Speak to an XBRL expert @ +27-10-446-9061 or email at enquiry@datatracks.co.za