The Companies and Intellectual Property Commission (CIPC) will from 1 July 2018 require that all Annual Financial Statements (AFS) submitted to the CIPC be in Extensible Business Reporting Language (XBRL) format.
It is a global standard for digital reporting. It uses a tagging software system whereby data can be used across many platforms without needing to recapture it.
This means it saves time, is more accurate and can be used as an analytic tool. For example, CIPC will be able to meaningfully compare AFS from different organisations which will be of value to users such as investors.
In addition, XBRL quickly identifies submission problems (making them quick to correct) and is extremely cost effective.
It is widely used overseas – for example, people submit their income tax returns in the UK using XBRL.
Basically, any entity which is required by the Companies Act to have their AFS audited. These include:
If you fall into one of these categories speak to your accountant who will guide you through the process of creating your AFS in XBRL. Remember the implementation date is 1 July this year.
Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.