Few people ever embrace change, but two new changes are coming which may affect your business.
XBRL
The new XBRL requirements that come into effect on 1 July promise to make submitting your financials faster and quicker in the long-run.
From 1 July 2018, the new eXtensible Business Reporting Language or XBRL requirements come into effect. All companies that are required to submit financial statements to the Companies and Intellectual Property Commission (CIPC) are required to do so in XBRL format. This includes Close Corporations that are required to submit financial statements.
XBRL is a global standard for exchanging business information that will, in time, be adopted as the common standard of reporting for all regulators in South Africa. This will eliminate duplications and differences in reporting standards between various regulators and will make it possible to re-submit annual financial statements to different regulators.
The change will reduce the costs associated with the submission of financial statements by automating routine tasks, as well as quickly and automatically identifying problems with filings. This will improve response times by allowing the CIPC to focus on analysis, decision-making and dealing with counterparties, rather than on data.
The CIPC has published a list of accredited Software Service Provider (SSP) panel members on its website. These SSPs are authorised intermediaries, who have been assessed by the CIPC and can provide you with the necessary technical support.
For more information:
Retirement funds
In addition, smaller pension funds may soon be required to have their financial statements audited.
The Financial Services Board is proposing to remove the audit exemption for smaller pension funds for all financial years starting after January 1, 2019. Under the proposed changes, all funds will be required to have their annual financial statements audited for financial years commencing after this date.
Moore Stephens South Africa has submitted comments to the Registrar on the feasibility of their proposal, but changes to the audit requirements of smaller pension funds are likely to take place and funds that have not been audited in the past should prepare for change. We will continue to monitor for updates but we welcome any questions.