Executive summary

This release contains the latest technical enhancements. The update has also been made to the IAS 1 Accounting policy changes. Changes in tax laws have resulted in changes to the tax note, specifically the inclusion of Pillar Two Tax disclosures and the 80% assessed loss rule. The release also contains some improvements and fixes.

Our November 2022 contained the latest technical enhancements, the introduction of the revamped Cashflow worksheet, Co-operatives as a new entity type (fully incorporated with iXBRL taxonomy), updated document manager due to ISA315(R) 2019, some minor fixes and the 2022 CIPC taxonomy

Contents

1.    Firm template guide
2.    New features and improvements

2.1.    Body Corporate
2.2.    Tax changes

2.2.1    Pillar Two tax
2.2.2    Improvement in Reconciliation of tax expense
2.2.3    01.50 Corporate tax computation and ITR14 support
2.2.4    Corporate tax rate change
2.2.5    Other changes

2.3     Indirect cashflow
2.4.    Cashflow features and improvements

2.4.1    Cashflow statement
2.4.2    Cashflow worksheet
2.4.3    Cashflow notes

2.5.    Improvements
2.6.    Technical improvements
2.7.    Fixes
2.8.    Optimiser​​
2.9.    Assurance

2.9.1    Lockdown, clean up and year-end close process

2.10.    Mapping changes
2.11.    Document manager enhancements
2.12.    iXBRL update

3.    Update Process
4.    Caseware Working Papers 2023

1. Firm template guide

1. Introduction

In this release, we are introducing the firm template guide. This is a tool that was created to simplify the process of creating a firm template. It breaks down the process into a logical sequence and presents you with only the steps that you need.

Refer to the link for further details on this guide
 

2. Data retention view

As part of the firm template guide, we have also made improvements to the Data retention view. This will give you an indication of what has changed in your file after an update and can use this functionality on the firm template or in an engagement file. Please note that minor changes (e.g., Investment income change to Investment income 1 or Alignment of tables) will not show in the Data retention view.

We have included in the release notes the Section labels for ease of reference when using this functionality. eg [INFO_001].
Refer to the link for further details on this functionality and section labels
 

2. New features and improvements

2.1    Body Corporate

SAICA issued the Body Corporate Illustrative during March 2023 which was previously an ED. The template was based on the previous ED, and therefore we have updated the template to reflect the changes that were incorporated in the Illustrative as well as some general improvements and feedback from the market for all regions.

Refer to SAICA Body Corporate Illustrative Template and to our Body Corporate template overview video.

2.1.1    What areas are affected by this update?

• General information page
  • Country of incorporation and domicile updated to Country of establishment and domicile [INFO_001]
  • Registered office updated to Service address [INFO_015]
    Level of assurance – updated the Act reference Sectional Titles Schemes Management Act (Act 8 of 2011) [REPOWNER_061]
  • Included the Units section [INFO_022]
• Index [INDEX]
  • Included the following items:
    • Levy Schedule
      Budget Forecast
      Insurance Schedule
  • Updated the Act reference Sectional Titles Schemes Management Act (Act 8 of 2011)
  • Included the narration - The Trustees Responsibilities and Approval and Trustees' Report do not form part of the annual financial statements and are unaudited.
  • Excluded the narration - These annual financial statements have been audited in compliance with the applicable requirements of the Sectional Titles Schemes Management Act.
• Trustee responsibility and approval – Updated narration [RES_005 & RES_012]
• Trustee report
  • Amend insurance policy details [REPOWENER_074]
    • Fidelity cover (PMR23(7) and Reg 15 of CSOSA)
    • Building insurance (Sec 3(iii) of STSMA)
    • Public Liability Insurance (PMR23(6))
  • Included the CSOS compliance reconciliation and narration [REPOWNER_078]
• Statement of Financial Performance
  • Amend Interest received to Investment income
• Accounting policies
  • Included an accounting policy for Reserve funds [ACP_046]
• Notes
  • Included a Special levy note [NOTES_221]
  • Amended insurance policy note [NOTES_217]
    • Fidelity cover (PMR23(7) and Reg 15 of CSOSA)
    • Building insurance (Sec 3(iii) of STSMA)
    • Public Liability Insurance (PMR23(6))
  • Amended Revenue note [NOTES_012]
    • Splitting out property industry revenue items into individual line items. This were previously all included as "rental income”
  • Amended Investment revenue note
    • Amended Interest received to Investment income
• Detailed Comprehensive Income Statement [DETIS_001]
  • Included the following items under Rental income to be consistent with Revenue note:
    • Ordinary levies
    • Special levies
    • Levy 1
    • Levy 2
    • Other levies
    • Penalties charged
    • Property rental income 1
    • Property rental income 2
    • Property rental income 3
    • Other property income
• Other schedules
  • Included the Levy schedule [LEV]
    • The Levy schedule was included as per the Illustratives, automating the calculations when the first columns are captured.  Additionally, the prior year table was also included for consistency
    • The calculation will be automated after the Rate per square meter table has been completed
    • The unit numbers and square meter will retain on roll forward for current and prior year, whilst the Rate per square meter table will move to the prior year
  • Included the Budget forecast [BF]
    • The Budget forecast was included as per the Illustratives in the same format as the Detailed Comprehensive Income Statement.  The values can be populated by:
      • Importing the Trial balance and using the budget column
      • Capturing as input fields
  • Included the Insurance schedule [INS]
    • The Insurance Schedule was included as per the Illustratives, automating the participation quote column when the sum insured are captured. Additionality, the prior year table was also included for consistency
    • The Participation quota calculation will be automated after the rest of the table is completed
    • The table will retain as is and not move to the prior year table as the sum insured will most likely be consistent year on year and therefore more efficient to only capture any changes to these amounts
  • 01.56  Tax computation - BC
    • Amended the interest received (trading) line to be linked to map number 2.1.?.150 and not 2.1.1.150

2.1.2    How does this affect you?

All these changes will be included in a new or updated file when the Body Corporate entity type is selected in the Information Store.

2.2.    Tax changes

There were some legislative changes requiring additional tax disclosures for the new Pillar Two tax model rules as well amendments to the calculation and presentation of the Assessed loss (80% rule). We have also introduced some improvements in the tax disclosure while these areas are amended.

2.2.1    Pillar Two tax

In May 2023 the International Tax Reform—Pillar Two Model Rules came into effect but will be effective per region as legislated.

By the time of publication this has not been legislated in South Africa but in the 2023 Budget Review documents, published on 22 February 2023, announced that during the 2023 legislative cycle, the government will publish a draft position on the implementation of Pillar Two for public comment. 

Therefore, disclosures are included to accommodate regions that might become effective before our next release.
 

What areas are affected by this change?

• Taxation note [NOTES_126]
  • Current tax section
    • Included a new line for Pillar Two tax and linked to new mapping 2.9.0.900.100.000.100.014.00000.000
  • Include a subsection for Exposure to Pillar Two income taxes

2.2.2    Improvement in Reconciliation of tax expense

Taxation note [NOTES_126]
An undefined difference has been added in the reconciliation of the tax expense that calculates the difference for both radio button options between this section and the Major components of tax expenses. 

2.2.3    01.50 Corporate tax computation and ITR14 support

2.2.3.1    CTM changes June 2023

SARS have released their annual updates during June 2023 and we have released a patch for clients to run on their files if applicable to them. For this release, these changes will be included in the template and you will not need to install the patch. Refer to the link for further details on these changes.

2.2.3.2    Assessed loss limitation rule

The change in the utilisation of assessed losses for companies came into effect for years ending 31 March 2023. The amendment will limit the utilisation of assessed losses for companies to the higher of R1 000 000 or 80% of taxable income. 

The assessed loss was captured in 01.10 Information store and this was used to include the allowable assessed loss. We have however received feedback from the market that they would prefer to have a calculation for it and therefore we have included the Assessed loss recon in the CTM document, with the utilised being calculated. There is also an additional adjustment line to enable the user to capture any other changes due to the tax rules in this line. This area is a subsection and can be closed if you don’t want to have the calculation visible.

2.2.3.3.    Simple signature area

A simple signature area was included to provide users the opportunity to have the documentation signed off.
 

2.2.3.4.    Fixes

• Accounting loss on disposal of assets
  • The duplication of this line was removed
• Donations (s18A)
  • Correct mapping to be 2.5.6.500.100.000.190.000.00000.000
• SBC tax table
  • Included an input row for the next financial year to manually capture if applicable before the updated template is released
• Printing
  • We have updated numerous totals and subtotals so that the lines print correctly 

2.2.3.5.    Update of 01.50 Corporate tax computation and ITR14 support

2.2.4    Corporate tax rate change

• If the year-end is before 31 March 2023 the default tax rate will be 28%
• If the year-end is on or after 31 March 2023 the default tax rate will be 27%

2.2.5    Other changes

• 01.20 Information store tax rate
  • Update the tax rate so that the user can insert two decimal places

2.3.    Indirect cashflow

The indirect cashflow was added to this template and is available to select under the Settings and Format menu.


 
 

2.4.    Cashflow features and improvements (SME Eng template only)

In the previous release, we have included the new Cashflow worksheet and in this release, we made some improvements to this feature.

Refer to the following video link for further information.
 

2.4.1    Cashflow statement

• Total cash movement for the year
  • The prior year's calculation was overridden when a file was rolled forward. This was corrected and the prior year's calculation will not be overridden
• Changed wording in "Cash flows from investing activities" from "Net cash (paid) received on sale of businesses" to “Net cash (paid) received on sale of subsidiaries.”
• Created an undefined difference in the “Cash flows from operating activities” section comparing the sum of “Cash receipts from customers” and “Cash paid to suppliers and employees” with the “Cash generated from (used in) operations as per the related note.
• Changed current year amount for “Cash generated from (used in) operations from the sum of the values to pull from the note.
• In the financing activities section, a row for "Dividends paid to Non-controlling interests". 

2.4.2    Cashflow worksheet

• Rounding
  • When the rounding is applied to the financials, the rounding did not reflect in the Cashflow worksheet as the Trade payable and Trade receivable opening and closing balance were calculated from the mapping. This was corrected to have the same rounding as in the notes
• Sole traders drawings
  • Drawings made by sole proprietors have been included in the cash flow worksheet as a movement against the owner's capital. This was affected by placing the other side of the entry as an add-back to retained income because the mapping mechanism assigns it to retained income, but the transaction is an adjustment to the owner's capital.
• Business combinations
  • Move the amount of the "gain on bargain purchase in a business combination" which is in the "non-cash items included in profit or loss" section into the "business combination" column from the "non-cash through profit or loss" column.
  • In the investments in subsidiaries, associates, and joint arrangements row, in the "non-cash through PL" column, added the additional mapping link for the fair value of existing equity holding prior to obtaining control.
• Disposals of subsidiaries
  • Created separate mapping (2.9.0.800.100.124.000.000.00100.000) for the profit or loss on disposal of a subsidiary in the group financial statements. This is required because in the cash flow worksheet, the gain or loss on disposal impacts the “sale of subsidiaries” row in the group financial statements, but it impacts the “investments in subsidiaries, associates, and jointly controlled entities” row in the separate financial statements. 
  • Profit or loss on disposals of subsidiaries in the consolidated accounts has been excluded from the “Non-cash through profit or loss” column and included in the “Business combinations and disposals of businesses” column.
  • This mapping has also been pulled into the sales of subsidiary note.
  • The wording “Sales of business” has been changed to “Sale of subsidiaries” in the main cashflow worksheet as well as in the investing activities worksheet.
• Provisions
  • The other comprehensive income from decommissioning liabilities in the other comprehensive income note is now pulled to the “Provisions” row in the cash flow statement in the “other comprehensive income” column.
  • All remaining non-cash movement from the provisions note pulls to the "non-cash through profit or loss" column. This amount reduces for any movements typed into the other movement columns in the “Provisions” row because they were not profit or loss movements.
  • The total of discounting of provisions pulls from the provisions note to the "finance costs" row in the "Items to be separately disclosed" section to the "non-cash through PL" column. This is because it is a non-cash interest charge. This amount is excluded from the provisions expense which is deducted as a non-cash item from profit or loss.
• Share-based payment
  • Added additional mapping for share-based payment in such a manner that it is divided into cash-settled and equity-settled share-based payment expenses. This was done to automate the impact of equity-settled share-based payment on the “Reserves” line
  • Automated “Share-based payment” expense into the “Non-cash items included in profit or loss” section of the Cashflow worksheet in the "non-cash through profit or loss" column. The user will therefore no longer have to make this adjustment as a manual input.
  • Changed wording from “Equity-settled share-based payment expense” to “Share-based payment expense”
  • The corresponding wording change has been made in the “Non-cash items included in profit or loss” section of the operating activities worksheet.
  • For equity-settled share-based payment, the expense has also been included in the “Reserves” row and the “Non-cash through profit or loss" column.
• Non-controlling interest profit allocation
  • Included the non-controlling interest share of profit or loss into the “Retained income” row. The other side of this transaction is included in the “Non-controlling interest” row.
• Dividends paid to Non-controlling interests
  • Added dividends paid to Non-controlling interests to the “Non-controlling interest” row, in the "items requiring separate disclosure" column. This amount is obtained from the statement of changes in equity.
  • This same amount has been included in the "Items to be separately disclosed" section of the cashflow worksheet, in the "Items requiring separate disclosure" column in the "Dividends paid" row. As such, dividends paid to non-controlling interest are included in the amount calculated for “Dividends paid.”
  • This same amount is presented in the financing activities workpaper as “Dividends paid to non-controlling interest”. It is shown in the “Reclassifications for cash flow line items” column because it reclassifies out of the “Dividend paid” line in the operating activities worksheet to present it separately in the financing activities section.
• Dividend paid
  • Added mapping for the equivalent of dividends for other entity types to the “Dividend expense” and “Dividend paid” rows respectively. These additions were made for “Distributions to members” and “Allocations to beneficiaries”
• Transfers between reserves
  • Automated the transfers between retained earnings and reserves from the statement of changes in equity to the “Transfers and reclassifications” column.
• Input cells
  • Added additional input cells in the cashflow worksheet for the “Goodwill,” “Non-controlling interest,” “Dividends paid,” and “Tax paid” rows.
  • Changed cell in "Loans to shareholders, in "other non-cash through profit or loss" to input.

2.4.3    Cashflow notes

• Cash generated from operations note [CFNOTES_001]
  • Added line item for “Share-based payment” 
• Tax paid note [CFNOTES_002]
  • Added a manual input line item to the reconciliation for “Tax settled through intercompany loan accounts”. 
  • An undefined difference has been added in the tax paid note that calculates the difference between this note and the amount calculated in the cashflow worksheet and therefore the amount presented on the Statement of cash flows.
• Dividend paid [CFNOTES_004]
  • Included dividends paid to Non-controlling interests as part of the dividends line.
  • Added a manual input line item to the reconciliation for “Dividend paid in specie/transferred to loan accounts”. The wording is also an input cell and can be used for any other reconciling items.
  • Added section showing the split between dividends paid to owners of the parent and to Non-controlling interest. This section is not mandatory and can be collapsed. It assists in agreeing the total dividend paid which is presented in the note with the split of the dividend paid which is presented on the face of the Statement of cash flows.
  • An undefined difference has been added in the dividend paid reconciliation that calculates the difference between the reconciliation of dividends and the total of the split between dividends paid to owners of the parent and to Non-controlling interest.

2.5.    Improvements

• 01.30  PI Score Calculation 
  • There was feedback from the market that the Total liabilities line in the PI Score calculation is not clear on what 3rd party liabilities are excluded from the amount that is populated. There is a difference in interpretation on what the possibilities of 3rd party (e.g., included in Trade payables, Tax) and therefore the wording on the PI Score calculation was updated to “The amount populated will be the total liabilities as presented on the Statement of financial position and must be adjusted for the specific transactions that is not third party liabilities.”
  • A simple signature area was included to provide users the opportunity to have the documentation signed off
• Index
  • The General information line was added to the index and is switched off by default. You can include it as part of the index by enabling builder mode, right-click on the line and switching it on.
• Accounting policies – Useful lives tables for Property, plant and equipment; Biological assets; and Intangible assets [ACP_001; ACP_004; ACP_010]
  • The columns of the asset categories can now be switched off independently, especially for the scenario where there is only one asset category
• Share capital [NOTES_021]
  • We have updated the narration for the unissued share capital and also included two radio buttons to enable the user to select between the different options.
• Loans to (from) shareholders [NOTES_010]
  • We have excluded the Impairment and sub-total from the sorting
• Members remuneration [NOTES_037]
  • We have received feedback from the market that they would like this note to be available when entity type – Close Corporation is selected.  The Directors' emolument will now be available, with the note name amended to Members remuneration.

2.6.    Technical improvements

• Autofill – amounts not pulling through after remapping
  The autofill will run automatically after you have remapped an item using the Account | Assign mapping and click on OK

2.7.    Fixes

• Document structure
  • Certain documents did not switch on when it was selected in the document structure
• Directors report – Review section [REPOWNER_062]
  • Correct the Page Break option to work correctly
• Going concern
  • We have corrected the printing for the radio button selection
• Assets (Property, plant and equipment; Investment property; Biological assets)
  • Corrected the spaces that printed in the Pledges as security section even if the paragraphs are switched off. (Note that this is only corrected on a new file. If you want to include this in an updated file, you can get a new version from the library).
• Cost of sales [NOTES_121]
  • We have updated the "Cost of manufactured goods" section so that the lines print correctly when there is only one amount in this table.
• Dividend paid [CFNOTES_004]
  • We have updated the note name that the paid is without brackets
• Related party note
  • The document number was updated for the alternative layout for the Excel import to be 850.11
• Detailed Income statements [DETIS_001]
  • We have updated the ‘'Profit and Loss on sale of assets and liabilities" to be "Loss on sale of assets and liabilities" in the Other expenses section
• Director's and prescribed officer's remuneration [NOTES_037]
  • Update totals and subtotal lines to not duplicate

2.8.    Optimiser

We have made some improvements to how the optimiser works:

• The trade receivable and trade payable will be included in all files and will not be visible in the optimiser. This will ensure that the automatic rounding function works correctly when applied to the file, as previously if automatic rounding was applied, there were recalculation errors that appeared if the notes were not in the file.
• The Cash generated from operations will be included in all files and will not be visible in the optimiser. This will ensure that the Cashflow works correctly 
• The optimiser screen will indicate the notes that do not have any amounts mapped to it. It is recommended to run the optimiser after the file is complete. 

2.9.    Assurance

2.9.1    Lockdown, clean up and year-end close process

2.9.1.1    Lockdown process

With lockdown, you lock all documents in a client file at a point in time. At the time of lockdown, Working Papers creates a permanent copy of all locked documents. In a locked down state, all locked down documents and most shared data in the file are read-only. 

ONLY AUTHORISED PERSONS SHOULD PERFORM THE LOCKDOWN. TO RESTRICT RIGHTS TO THE LOCKDOWN CONSIDER THE PROTECTION SETUP AND RIGHTS ALLOCATIONS TO USERS. 
 

2.9.1.2    Considerations before the lockdown and archiving of client files

When using the Lockdown Wizard Caseware Working Papers will detect whether: 

• a Year-end close has been performed and/or; 
• whether a Clean up has been performed on the client file selected to be locked down. 

Generally, a lockdown is done after a defined period after the signature of the relevant assurance report. To assist firms with remembering to schedule their file lockdown, we have included a Schedule lockdown button in the Information Store document where the report date is set to remind

2.10.    Mapping changes

2.11.    Document Manager enhancements

This release includes a new filter in the document manager for new files, including Preparation and Leadsheet. This will enable to filter the document manager per engagement type.

2.12.    iXBRL update

The 2023 taxonomy was not adopted in this release but this will not affect the validation process on the CIPC portal for new or updated files.

3.    Update process

3.1    Update from 2022.01.01 template to 2023.01.01

The update for the Financial Statements and Probe was split again in this release and therefore the update can be selected independently. Should you use both Financial Statements and Probe it is best practice to always stay on the same released template and therefore update both.

Take note, if you are updating from any template before 2022.02.01 you will have to follow the process below.

 

3.2.    Update to 2022.02.01 template

Due to the renewed document manager, the financial statements and Probe must be updated simultaneously to conform with the new sections and related changes to provide seamless integration.

A warning message will appear, and you will be prevented from continuing if the selection is not made. Engagement files updated from before the 2022.02.01 template will get this message, but in our next release, these updates will be separated again.

Also, note if you have customised mapping the lead sheets must be manually amended to the new lead sheets.

3.3    Update options

We have introduced the Optimizer in our 2020.01.02 (July 2021) release, where a full replace of the financials was required.  If the financials were not updated with the 2020.01.02 release, the financials will be replaced, but for future updates, the update option will become available again.

In this release, we have improved the second option even further with data retention on all fields where there are no changes and ensured that additional notes are not included on roll forward.

3.4    Create new file from client data

An alternative method of updating an engagement file is the create new file from Existing file. There is additional data retention included in this release whereby all the input cells will retain.

This is recommended when:

• Consider if a firm template is used

• The engagement file is more than two year’s version back

• The engagement file cannot be relied on e.g. Overwritten etc.

  ​​​​

4. Caseware Working Papers 2023

The following describes the features and fixes included in Working Papers 2023 and related products

4.1    Features

4.1.1    History and milestones

• Added a history event for manually relocking a previously locked-down engagement file. You can enable tracking for this event in your file’s history settings.
   

4.1.2    IDEA Integration

• Template authors can now embed IDEA analytics from their installed IDEA SmartAnalyzer workflows into CaseView paragraphs, enabling them to standardize which tests to run and when. Users can perform analytics on the engagements and receive results without having to leave the Working Papers interface.
   

4.1.3    Imports and exports

• Working Papers now supports imports from the following software packages:
  • Sage 50 Accounts 2023 (UK)
  • Working Papers now supports exports to the following software packages:
    • ProFile 2022 (Canada)

4.1.4    Interface

• The Caseware Cloud search menu in the Consolidation | Properties, Consolidation | New | Existing File, Connect to SmartSync Copy... and Locate Parent of... dialogs has been modernized to improve performance and functionality.
• The SmartSync Server menu on the Working Papers File | Open page can now be automatically hidden when you connect to a Caseware Cloud site.
• Improved the wording in the Rename File confirmation dialog to clarify that Cloud-integrated files can be renamed, but Cloud-published files cannot.

4.1.5    Print and save

• When exporting a CaseView document that contains external documents to a PDF, the PDF copies of the external documents can now be read by a screen reader and the text can be copied and pasted.

4.2    Fixes

4.2.1    CaseView

• Fixed an issue where text copied from external PDFs in CaseView would appear distorted when pasted into other text editors.
• Fixed an issue where document sections with a sort group name that exceeds 256-characters would cause the document to stop responding.

4.2.2    Compression

• Fixed an issue that prevented some files with special characters in the file name from being compressed.

4.2.3    Hybrid Cloud

• Fixed an issue where Cloud-integrated files with accented characters in the file name would fail to open when a sync copy was downloaded from the File | Open | Caseware Cloud menu.
• Fixed an issue (Error code: 0x8007001d) that prevented Cloud-integrated engagement files from being converted from the Working Papers interface.
• Fixed an issue where the Year-End Close Performed column in the Working Papers app on Cloud would not update with the correct year-end close status for each file.

4.2.4    Imports and exports

• Fixed an issue where imports from Fortune Acomba would exclude some transactions if Use the posting date if it is different than the effective date was selected.
• Fixed an issue that prevented the completion of E-conomic Online Accounting imports.

4.2.5    Interface

• Fixed an issue where upon opening an engagement file, the messages “Updating balance sheet account balances” and “Processing registration” would display, but not progress, preventing access to the file’s contents.

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