Which South African Co-operatives Should File AFS in iXBRL?
CIPC (The Companies and Intellectual Property Commission) of South Africa first implemented iXBRL-based financial reporting for private companies in 2018 and has been continuously working on expanding the mandate and enhancing the quality of data and reporting. The pilot process to file annual financial statements (AFS) in iXBRL began on 1st April 2022. CIPC mandates that all eligible South African cooperatives file their AFS in iXBRL format starting 1st February 2023.
Note: CIPC has mandated all eligible Co-operatives in South Africa with a turnover of more than R25 million to file their AFS in iXBRL Format from February 01, 2023
What are co-operatives in South Africa?
A cooperative is a group of people doing business together to achieve collective social and economic adjectives. In South Africa, co-operatives are governed by the Co-operatives Amendment Act 2013. They are divided into three categories based on their annual revenue – Categories A, B, and C. Categories are also divided into primary, secondary, and tertiary.
- Primary Co-operatives: A primary co-operative can be registered by a minimum of five natural persons, two juristic persons, or a composition of any five persons.
- Secondary Co-operatives: They must be formed by two or more operational primary co-operatives.
- Tertiary Co-operatives: They must be formed by two or more operational secondary co-operatives.
- National-Apex Co-operatives: Three operational sectoral tertiary co-operatives must be formed on a national level, and five operational multi-sectoral tertiary co-operatives that operate on a provincial, district, or local level. A secondary co-operative can join the apex if no sectoral or multi-sectoral tertiary can represent the secondary co-operatives.
In this context, operation means a co-operative held an annual general meeting and submitted its annual report, audited report, or independently reviewed to the registrar in the financial year.
Wondering which South African co-operatives should file AFS in iXBRL? Or which category does your co-operative fall in? Let’s understand the different categories of co-operatives based on their annual revenue.
Categories of Co-operatives to File AFS in iXBRL
Only the co-operatives that need to be audited (Category C – primary, secondary, tertiary, and national apex) will be required to submit AFS with CIPC in iXBRL format.
Independently reviewed AFS (Category B) can be submitted with CIPC in iXBRL format; however, it is not mandatory.
The following section describes the categories of South African co-operatives. These co-operatives are divided into categories based on their annual revenue and compliance requirements with CIPC.
- Category A Primary Co-operatives are further divided into A1 and A2, where the annual revenue of category A1 is less than R1 million and the annual revenue of A2 co-operatives is at least R1 million but less than R10 million.
- Category B Primary Co-operatives have annual revenue of at least R10 million but less than R25 million.
- Category C is divided into primary co-operatives (with R25 million or more annual revenue) and secondary, tertiary, and national-apex co-operatives.
Only the co-operatives that need to be audited (Category C – primary, secondary, tertiary, and national apex) will be required to submit AFS with CIPC in iXBRL format.
Independently reviewed AFS (Category B) can be submitted with CIPC in iXBRL format; however, it is not mandatory.
Need Assistance With Preparing Annual Financial Statements in iXBRL Format?
DataTracks, with a commendable track record of 220,000+ compliance reports, is your ideal choice. With expertise in providing high-quality and reliable reports, DataTracks can help co-operatives smoothly transition to iXBRL. So if you want a hassle-free CIPC filing process, get in touch with an iXBRL expert TODAY @ +27-10-446-9061 or email at enquiry@datatracks.co.za.
