Firstly, What is XBRL?
XBRL is short for E(x)tensible (B)usiness (R)eporting (L)anguage, being the international standard for digital business reporting. This allows for the creation of computer files which contain financial reporting information which is not easily readable by humans. It is ideal for passing information between computers but is of little use when the information needs to be viewed by humans too.
Hence the creation of iXBRL
iXBRL or (I)nline XBRL is the international standard that enables both human-readable and structured, machine-readable data to be included in a single document. An iXBRL document is included in an xhtml file which can be opened in any web browser (e.g. Chrome). In this way the human-readable data is displayed in the browser and the machine readable is hidden from view. When the same file is read by the computer to which the file is ‘submitted,’ it will only read the machine readable data and ignore the human-readable bits.
Who Needs to Submit iXBRL AFS?
As most of you will know by now, CIPC in South Africa will require iXBRL format Annual Financial Statements to be submitted with Annual Returns for certain companies and close corporations as from 1 July 2018. This doesn’t apply to the Annual Financial Statements of many companies and CC’s that are produced using AuditMate / Accountsmate, so for many clients this is not applicable right now.
iXBRL filing is required when any of the following apply:
• Your entity has a Memorandum of Incorporation that prescribes filing of audited financial statements.
• Your entity is a private or personal liability company and, in the ordinary course of its primary activities, it holds assets in a fiduciary capacity for persons who are not related to the company, and the aggregate value of such assets held at any time during the financial year exceeds R5 million.
• Your entity is a private or personal liability company that compiles its AFSs internally (for example, by its financial director or one of the owners) and has a Public Interest Score (PIS) of 100 or more.
• Your entity is a private or personal liability company that has its AFSs compiled by an independent party (such as an external accountant) and has a Public Interest Score (PIS) of 350 or more.
So this is initially aimed at the larger, non-owner-managed entities.
What About Financial Accountability Supplements?
Financial Accountability Supplement (CoR 30.2) submissions are still required for all CC’s and Companies that are not required to submit Annual Financial Statements in iXBRL format.
However, in terms of Regulation 30(3) a company that is not required to have its AFS audited, may file its audited or reviewed AFS (in iXBRL format). This may be more efficient than completing a CoR 30.2, but only applies if the AFS are audited or reviewed.
How Can iXBRL Mate assist?
IT Mates has developed iXBRL Mate, probably the easiest to use Excel ‘tagging’ system available, to solve the problem of creating iXBRL submission files from existing Annual Financial Statements.
iXBRL Mate was show-cased at our webinar on 28 June 2018 and officially released as version 220.127.116.11 on 3 July 2018. It is available for download from www.itmates.co.za and is free to use until 31 August 2018. Please make use of this opportunity.
Contact us if you have any questions or need assistance.