JSE companies to use more stringent XBRL system from July 1
The eXtensible Business Reporting Language, which is widely used around the world, will ensure integrity and transparency
Companies listed on the JSE are to have a more stringent financial reporting process as companies come under flak for transparency.
Speaking at the JSE on Tuesday, Minister of Trade and Industry Rob Davies said: "We’ve come from a difficult period of state capture and corruption. The casualties of this have been reputable financial organisations that have been prey to their willingness to compromise their standings."
All qualifying entities required to submit annual financial results under Section 30 of the Companies Act will be required to do so through eXtensible Business Reporting Language (XBRL), replacing the submission of PDF documents, from July 1.
XBRL is a freely available and the global standard for exchanging business information.
"We all know ... companies have prepared different submissions of different formats from the JSE to government regulatory bodies," said Davies. "That’s the kind of situation we’re vulnerable to. This kind of system has the capacity to ensure there is integrity in financial reporting."
Within the past 10 years, the Securities and Exchange Commission (SEC) in the US, the UK’s HM Revenue and Customs (HMRC), and Companies House (UK), as well as Singapore has started requiring companies to use the system, and other regulators are following suit.