[Article] Annual returns: the difference between AFS and FAS

[christieInfoDocs]

The final step of submitting your annual return requires that you either submit a Financial Accountability Supplement (“FAS”) or Annual Financial Statements (“AFS”). This selection will depend on whether your company requires a financial audit or not.

Companies that require an audit must submit their audited AFS to the CIPC in a standardized financial reporting format, called XBRL. A company’s AFS can be converted from Word, Excel or PDF format to XBRL by an audit firm or online service provider, who will usually charge a fee according to the amount of pages in the document. After selecting the CAPTURE AFS button within the annual returns dashboard on eServices, the user will be directed to a dedicated submission portal to capture the XBRL formatted AFS.

Companies that do not require an audit will need to capture a FAS. This is a short questionnaire to determine who is responsible for the accounting records, financial statements and other roles within the company. It will request the names and ID/registration numbers of the people/companies who are responsible, and in the case of an independent review, the reviewer’s profession number.

When submitting a FAS the company will not need to submit their AFS to CIPC, however, it is required to keep signed and approved copies of your AFS as part of your company’s records.

[Andromeda]

There is more to it than that. Under many circumstances a company that has Independently Reviewed Financial Statements will also require an XBRL AFS.

You don't need to use a third party; many folk use AFS preparation software that includes XBRL conversion.

[christieInfoDocs]

Voluntary audits and independently reviewed AFS are not obliged to submit their AFS

Hey Andomeda,

Thanks for the comment. According to Notice 67 of 2019 released by CIPC. Voluntarily audited AFS and independently reviewed AFS are not obligated to be submitted to CIPC.
CIPC says that if the company wishes to do so they can submit it. I am curious, in your experience what other circumstances have pushed that threshold?

You are quite right in that some AFS preparation software does supply a module to do the XBRL conversion from the drafted AFS.
I am sure that it will become more commonplace to include this as part of the drafting, however, my understanding is that most professionals opt to get this outsourced due to lack of training and time.

There is more to it than that. Under many circumstances, a company that has Independently Reviewed Financial Statements will also require an XBRL AFS.

You don't need to use a third party; many folk use AFS preparation software that includes XBRL conversion.

[Andromeda]

Hi Christie, actually I am certain I have misread Regulation 30 and I owe you an apology.

Also, the CIPC Notice 67 of 2019 seems to be explanatory rather than a concession.

The only issue, and it is a small one, is regarding the voluntary audit. The Regulations exempt submission where it is voluntary by resolution. If an audit is voluntary by MOI requirement regardless of PIS score, then submission is also required.

I suppose it is actually simple; if an audit is required either by PIS score or MOI, then an XBRL submission is required, otherwise CoR 30.2. Anyway, that's how I understand it.