Co-operatives – Understand your XBRL Compliance requirements
WHAT IS CIPC CO-OPERATIVE MANDATE?
The Companies and Intellectual Property Commission (CIPC) of South Africa first implemented XBRL-based reporting for private companies in 2018 and has been working on expanding that mandate and enhancing data quality progressively.
NOTICE 52 OF 2021 by Companies and Intellectual Property Commission (CIPC) is notifying Co-operatives of the requirements of submitting the annual reports with the registrar and filing yearly submission of information (annual returns)
Let us first understand what Co-operatives are?
Co-operatives are businesses where a group of people with common needs get together voluntarily and establish a co-operative to address the conditions an individual cannot manage alone.
Starting 1st April 2022, the Companies and Intellectual Property Commission (CIPC) requires audited co-operatives, namely those in category C Co-operatives, including secondary, tertiary, and national apex co-operatives, to submit their annual financial statements (AFS) in the Inline XBRL format.
Companies whose AFS are independently reviewed – category B co-operatives – can submit the statement in iXBRL. However, compliance with the mandate is not compulsory for category B co-operatives.
WHAT IS THE SCOPE OF XBRL REPORTING
The scope of XBRL reporting of the co-operatives depends upon the threshold limit of their annual revenues.
Category A1 Primary Cooperative
Having annual revenue less than R1 m has only to provide an income statement & balance sheet (statement of financial position)
- Annual submission – Form CO-OP 7, Form CO-OP 8, and Form CO-OP 15.1, which the Board of Directors must complete
Category A2 Primary Cooperative with annual revenue of at least R1 m but less than R10 m
Has to provide the financial reporting framework as per Form CO-OP 15.2 or a financial reporting framework as determined by the co-operative, provided that such framework complies with the requirements for financial statements defined in the Act.
- Annual submission – Form CO-OP 7, Form CO-OP 8, and Form CO-OP 15.1, which the Board of Directors must complete.
Whereas, all below Cooperatives that are categorized below based on their revenue, require a financial reporting framework in IFRS for SMEs. Provided that the co-operative should meet the scoping requirements outlined in IFRS for SMEs.
- Category B Primary Cooperative with annual revenue of at least R10m but less than R25m
- Category C Primary Cooperative has yearly revenue of R25m or more
- Secondary Co- operative, Tertiary Co- operative, National Apex Co- operative
If the co-operative does not meet the scoping needs outlined in the IFRS for SMEs, the financial reporting framework as per Form CO-OP 15.2 or financial framework as determined by the co-operative, provided that such reporting framework complies with the requirements for financial statements as defined in the Act.
- Annual submission – Form CO-OP 7 Form CO-OP 8. The co-operative must appoint an auditor and submit Form CO-OP 4 with particulars of the appointment
WHAT ARE FEES PAYABLE?
CIPC requires co-operatives to pay prescribed fees for filing annual returns.
- Category A1 and A2 Primary Cooperative – R 50.00 or R 100.00 if submitted more than 30 days after the due date
- Category B Primary Co-operative – R 450.00 or R 600.00 if submitted more than 30 days after the due date
- Category C Primary Co-operative – R 3 000.00 or R 4 000.00 if submitted more than 30 days after the due date
- Secondary Co-operative, Tertiary Co-operative, and National Apex Co-operative with an annual or projected annual revenue of less than R25 Million. – R 450.00 or R 600.00 if submitted more than 30 days after the due date
- Secondary Co-operative, Tertiary Co-operative, and National Apex Co-operative with annual or projected annual revenue of R25 million or more. – R 3 000.00 or R 4 000.00 if submitted more than 30 days after the due date
XBRL CONVERSION: WHEN AND HOW?
In the pilot phase, some companies started leveraging the adoption of a new XBRL format. This is to enhance their existing process, handle the risk and have a controlled filling process.
At the initial stages, the efforts and investment for this XBRL conversion process may seem very high. Still, timely planning and proper guidance will reduce this pressure over the years, as with other private companies in South Africa.
From 1st April 2022, co-operatives must comply with the above provisions.
In filing the annual reports, co-operatives must file audited financial statements or independently reviewed reports; depending on the category mentioned above, using the XBRL platform.
If the planning starts early, the whole process will run smoothly.
Nowadays, you will come across plenty of options when choosing software for intelligent and accurate work, and XBRL is no exception. You can select your solutions to partner with among the many options available. After all, the planning of resources, time, and budget depends on the software and service provider you choose.
As a co-operatives company, you can use the conversion software available by software vendors and do it yourself; or you can select any XBRL service providers to outsource this service.
If you are looking for either the software platform or professional services to comply with the CIPC Co-operatives XBRL mandate, we at Ez XBRL Solutions can help you.
Please feel free to get in touch with us at firstname.lastname@example.org
Ez-XBRL Solution is a global provider of XBRL solutions and services. We are an acknowledged leader in XBRL, known to provide solutions and services for analytics, regulatory compliance, and business reporting.
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Benefits of partnering with Ez XBRL
- Partnering with Ez XBRL provides you with complete end-to-end XBRL compliance solutions that can make your compliance process stress-free.
- Our highly trained professional services team, a well-defined, tried and tested process, and a suite of technologies crafted specifically for XBRL/Inline XBRL formatting, creation, and validation can help you with every stage in the timely filing of all your Forms for cooperatives companies.
- In compliance reporting, meeting the deadline is as important as providing correct information Ez XBRL as your partner company will support and guide you through the entire process.