Depending on the regulatory requirements of the Companies Act (the “Act”) applicable to a specific enterprice, all entities MUST submit their annual financial statements (“AFS”) together with their Annual Returns.
Should any one or more of the following criteria apply to your enterprise, you will have to comply with the CIPC requirement to compile your AFS using iXBRL:
⊗ If your enterprise has a Memorandum of Incorporation (“MoI”) that prescribes filing of audited financial statements;
⊗ If your enterprise is a private or personal liability company if, 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;
⊗ If your enterprise is a private or personal liability company that compiles its AFS internally (for example, by its financial director or one of the owners) and it has a Public Interest Score (“PI Score”) of 100 or more;
⊗ If your enterprise is a private or personal liability company that has its AFS compiled by an independent party (such as an external accountant) and it has a PI Score of 350 or more.
Additionally, should your enterprise have:
- ⊗ opted to have its AFS audited, or
⊗ voluntarily included audit as part of its MoI, andis a private or personal liability company that is not managed by its owners, it is subject to independent review, and:⊗ if it compiles its AFSs internally and its PI Score is less than 100; or
⊗ if it has its AFSs compiled independently and its PI Score is between 100 and 349,you will also have to comply with the CIPC requirement to compile your annual financial statements (“AFS”) using iXBRL.
Furthermore, even if a company’s PI score is below 100, once it subjects itself to an audit either by official board decision or shareholders resolution (via official company documentation), it is compelled to submit AFSs in terms of Section 30 (2)(b) of the Act.
If it is decided via informal decision to have an audit done, but the decision has not been declared and documented as an official decision, it is not required to submit AFSs to the CIPC.
If the decision to perform an audit is not required in terms of the Act and Regulations but stems from an external requirement such as the bankers or other lending institution of the enterprise, then there is no need to submit the AFSs to CIPC.