Applicability of Filing Annual Financial Statements in XBRL mode with the CIPC (Companies and Intellectual Property Commission)
In terms of Section 33 of the Act read together with Regulation 28, 29 and 30 of the Companies Regulations of 2011, the following entities must submit their AFS in XBRL with their annual returns:
- All Public Listed Companies;
- State Owned Companies;
- Companies whose Memorandum of Incorporation (MOI) or Articles of Association (AOA) requires the auditing of financial statements;
- Private or personal liability company, in the ordinary course of its primary activities, holding 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;
- Private or personal liability company that compiles the AFS internally (for example, by its Financial Director or its owner) and that has a Public Interest Score (“PIS”) of 100 or more;
- Private or personal liability company that compiles AFS by an independent party and that has a PIS of 350 or more; and
- Private or personal liability company not managed by its owners, which opted to have its AFS audited or voluntarily included audit as part of its MOI, may be subjected to an independent review if:
- It compiles its AFS internally and its PIS score is less than 100; and
- AFS compiled independently and its PIS is between 100 and 349.
How to calculate the Public Interest Score (PIS) of a company or close corporation?
- a number of points equal to the average number of employees of the company during the financial year;
- one point for every R1 million (or portion thereof) in third party liability of the company, at the financial year end;
- one point for every R1 million (or portion thereof) in turnover during the financial year; and
- one point for every individual who, at the end of the financial year, is known by the company:
- in the case of a profit company, to directly or indirectly have a beneficial interest in any of the company’s issued securities; or
- in the case of a non-profit company, to be a member of the company, or a member of an association that is a member of the company.
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