The ease of doing business and financial reporting has received a boost
with the launch of the Companies and Intellectual Property Commission's
Extensible Business Reporting Language (XBRL).
The recent launch of
the digital financial reporting solution will allow companies to file annual
financial statements using XBLR, and the data can be shared across the
regulatory spectrum for multiple purposes.
South Africa is among the first countries on the continent to introduce this
financial and regulatory reporting technology.
Speaking at the launch, the Minister of Trade and Industry, Rob Davies, said
while there were many challenges with the Fourth Industrial Revolution, it
did offer the possibilities of improving governance.
¡§Digital financial reporting is introduced via the internationally
acknowledged best-practice technology standard. XBRL is for electronic
communication of business information and it simplifies the preparation and
analysis of data, providing major benefits in the communication of annual
financial statements. [It is] a step towards absolute connectivity between
all our entities,¡¨ said the Minister.
XBRL will align the submission of annual financial statements with that of
the global reporting standards for businesses. The programme will also
mitigate the administrative burden on businesses when reporting financial
information to government for regulatory compliance.
¡§This system has the capacity to ensure that there is integrity in the
financial reporting mechanism to different agencies in government.
Furthermore, it supports greater transparency, improves the efficiency of
capital markets by assisting analysts, financial and security regulators,
business registrars, tax authorities and other users to access the relevant
facts,¡¨ said Minister Davies.
¡V Source: SAnews.gov.za