Final countdown for XBRL launch | Accounting Labs
The Accounting Labs is counting down the days until the launch of XBRL on the 1st of July 2018.
XBRL is an Extensible Business Reporting Language for electronic communication of business information providing major benefits in the preparation, analysis, communication of Annual Financial Statements. Companies and Intellectual Property Commission (CIPC) embraces international best practices and the impact of the use of XBRL when submitting Annual Financial Statements (AFS) online and in improving efficiencies. We are living in a digital age where we use technology to make our lives more manageable this is where XBRL comes in. XBRL is a digital reporting system that organises chaos to makes it easier for companies to report their financial information in an electronic format.
What are the benefits of using XBRL?
- You can obtain data which can be entered automatically into systems without re-keying, re-formatting or other forms of “translation” efforts.
- Dramatically reduce costs by automating routine tasks.
- Quickly and automatically identify problems with filings.
- Analyse and compare data quickly, efficiently and reliably.
- Reach judgments with far greater spend and confidence by monitoring of data and activities.
- Focused effort on analysis, decision making and dealing with counter parties rather than on data manipulation.
- Provide a much faster and focused response to counter parties.XBRL will eventually provide one common standard of reporting to all regulators in South Africa. Meaning the same set of annual financial statements will be re-usable therefore eliminating duplication and differences in reporting to various regulators.
Where is XBRL applicable?
XBRL can be applied to a very wide range of business and financial data. It can be applied to the following practices:
- Company internal and external financial and business reporting.
- Business reporting and exchange of information within all types of regulators, including tax, financial authorities, central banks and governments.
- Filing of loan reports and applications.
- Credit risk assessments.
- Authoritative accounting literature, providing a standard way of describing accounting documents provided by the authoritative body.
Which data elements need to be submitted via XBRL
The CIPC taxonomy’s scopes main focus is on covering the reporting requirements of domestic entities as prescribed by Companies Act No 71 of 2008 and Closed Corporations Act 69 of 1984. The IFRS taxonomy, Full and IFRS SME’s developed by the International Accounting Standards Board has been incorporated separate from the SA-specific requirements. Depending on the regulations of the Companies Act applicable to a specific entity, all entities MUST submit their annual financial statement together with their annual returns.The overall approach for tagging of Annual Financial Statements for the start of this program is based on the minimum tagging approach. At the highest level the whole statutory annual financial statements need to be tagged with the iXBRL tags.Minimum tagging for AFS’s will be the tagging of individual and all applicable facts of the primary Financial Statements as listed below:o Statement of Financial position, current/non-currento Statement of financial position, order of liquidityo Statement of comprehensive income, profit or loss, by function of expenseo Statement of comprehensive income, profit or loss, by nature of expenseo Statement of comprehensive income, OCI components presented be before taxo Statement of comprehensive income, OCI components presented net of taxo Statement of cash flows, direct methodo Statement of cash flows, indirect methodo Statement of changes in equityo Statement of changes in net assets available for benefits