CIPC: Draft Gap Analysis on IFRS 2025 Taxonomy Updates

CIPC: Draft Gap Analysis on IFRS 2025 Taxonomy Updates

• 07 May 2025
• CIPC
• South African Accounting Academy

Summary:

The Companies and Intellectual Property Commission (CIPC) has notified the public that the Draft Gap Analysis in response to the IFRS Accounting Taxonomy 2025, is now available on the CIPC website.

Article:

The Draft Gap Analysis was published by the IFRS Foundation on 27 March 2025. This document presents the outcome of gap analysis conducted on the CIPC XBRL Taxonomy 2024 as developed by CIPC, to identify potential areas for taxonomy improvements in terms of the scope of information requirements covered and the technical application of the XBRL standard. In particular, the document presents an overview of differences between the International Financial Reporting Standards (IFRS) Taxonomy 2025 (IFRS 18) and the current CIPC Taxonomy 2024, their impact on the CIPC structures and recommended steps to be taken by the CIPC in their future releases of the taxonomy. It includes in its scope the IFRS-full, IFRS for SMEs and Sustainability taxonomies.

This Gap Analysis outlines the potential impact of the 2025 Taxonomy updates on reporting requirements, including:

• IFRS 18 – Presentation and Disclosure in Financial Statements: Introduces new presentation and disclosure requirements, with a particular focus on the statement of profit or loss.
• IFRS 19 – Subsidiaries without Public Accountability: Disclosures: Introduces simplified disclosure requirements for qualifying subsidiaries.
• Amendments to IFRS 7 and IFRS 9: Reflect updates to the classification and measurement of financial instruments.

You can access the 12-page Draft Gap Analysis at https://www.cipc.co.za/wp-content/uploads/2025/04/CIPC-XBRL-Taxonomy-2025-Gap-Analysis-DRAFT-2025-04-17.docx

CIPC has invited all stakeholders and interested parties to review the draft and submit any comments or feedback by the end of 9 May 2025. Feedback can be sent via email to: [email protected] with the subject line: “Feedback – Draft Gap Analysis on IFRS 2025 Taxonomy Updates”.

Click here to download Notice 22 of 2025:

https://www.cipc.co.za/wp-content/uploads/2025/05/Customer_Notice_Gap_Analysis_Report_2025.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• The Companies Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• As an auditor, independent reviewer and accountant, you also need to monitor your client’s compliance with the Companies Act and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator, and you should be aware of all publications and notifications issued by the regulator.
• Where you perform these compliance tasks on behalf of your client, you need to ensure that you comply with all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.

Relevance to Your Clients:

• An entity (company or close corporation) has a duty to comply with the Companies Act, and all relevant notices/enforcements/practice notes/customer letters issued by CIPC as the regulator.

0 COMMENTS

LEAVE A COMMENT