The Accounting and Corporate Regulatory Authority (ACRA) in Singapore has made it mandatory for certain types of companies to submit their financial statements in XBRL filing format. If your company falls under the categories specified by ACRA, you must follow the regulation and submit your financial statements in such a format.
To help you comply with the law, we will provide more information about XBRL filing in Singapore. We will cover who needs to file, why it’s important, and how to submit your financial statements in XBRL format. Whether you’re a business owner, accountant, or simply curious about XBRL filing in Singapore, these are the information you will need to know.
What is XBRL Filing?
XBRL (eXtensible Business Reporting Language) is a powerful digital reporting language used to standardise the way businesses, regulatory authorities, and other stakeholders report and share financial data. The primary objective of this language is to provide a reliable and accurate method for exchanging financial information online.
XBRL has long been a global standard, but ACRA only introduced it in Singapore on November 1st, 2007. One of the most significant advantages of this open-source software is its ability to organise and manage financial data for research and analysis. It also helps improve the accuracy and reliability of financial information communication both online and among businesses.
ACRA has decided to implement XBRL as a key aspect of its strategy to simplify the process of financial reporting and facilitate the exchange of financial data with the global business community. By standardising the way financial data is reported and shared, XBRL has become an essential tool in improving efficiency, reducing errors, and providing investors and other stakeholders with a more transparent view of a company’s financial performance.
What are the Benefits of Using XBRL?
XBRL offers a plethora of truly invaluable benefits. This markup language enables organisations to swiftly compile financial statements that comply with the current accounting standards of their respective countries. The associated tags for reported facts not only make the statements compliant with country-specific standards but also allow users to comprehend the underlying meaning behind each piece of data within the report. This enables investors, including regulators, to easily verify the accuracy and dependability of the information provided.
XBRL-based reporting benefits business owners to a great extent. These owners can gain enhanced insight into their business performance thanks to the level of detail provided by XBRL. Compliance with laws and regulations surrounding the business is also achieved through this level of insight, which ultimately helps in avoiding fines and penalties.
Another unique advantage of XBRL-based reporting is the efficiency it brings to organisations that employ it. By eliminating the need to manually enter or aggregate data into reports, XBRL saves businesses both time and money. The language also facilitates the easy accessibility of data in multiple languages and currencies, which means that global firms can easily access reports across international boundaries.
If you run a large company that requires the extraction of large volumes of data, XBRL-based reporting is the way to go. This markup language enables businesses to extract data from large volumes of documents quickly and accurately, eliminating the need to handle the time-consuming task of reconciling documents. This time gained can then be utilised for other more crucial decision-making tasks.
Who Needs to Use File XBRL in Singapore?
In Singapore, all limited and unlimited public and private companies are required by ACRA to file full sets of financial statements in XBRL format, which means that almost all businesses in the country must comply with this regulation. The use of XBRL just partially is no longer an option.
However, there are a few exceptions to this rule. Companies limited by guarantee and foreign companies, as well as their branches, are not mandated to file in XBRL and may choose to file their financial statements in PDF format instead.
Certain types of businesses are also exempt from filing full sets of financial statements in XBRL. However, these companies must still file Financial Statements Highlights in XBRL format. The exempted business types include Commercial banks, Merchant banks, Registered insurers and Financial companies regulated by the Monetary Authority of Singapore. Others include companies allowed by law to use accounting standards other than Singapore Financial Reporting Standards (SFRS), SFRS for Small Entities, and International Financial Reporting Standards (IFRS).
In addition, Solvent Exempt Private Companies (EPCs) are exempt from filing XBRL but are encouraged to file a full set of financial statements. Insolvent Exempt Private Companies, on the other hand, must file a full set of financial statements in XBRL or a full set of financial statements in PDF with Financial Statements Highlights in XBRL.
How to File Financial Statements in XBRL
If you are a business owner in Singapore, it is crucial for you to understand the process of filing your company’s financial statements in XBRL. To do this, you must first familiarise yourself with the various templates allowed by the Accounting and Corporate Regulatory Authority (ACRA). There are three templates available to choose from, each with its own unique set of elements.
The full template is the most comprehensive, consisting of approximately 210 elements. This template includes information from both the financial statements and any relevant notes attached to the statements.
The simplified template, on the other hand, has around 120 elements and still serves to gather all the information found in the financial statements. This template may be a good option for businesses with less complex financials.
The Financial Statement Highlights (FSH) template has two variants, one for banks and one for insurance companies. This template is used when only presenting key account details in XBRL. The bank FSH template has approximately 80 elements, while the insurance FSH template is similar to that of banks and also has around 80 elements.
Before filing, it is necessary to set up a BizFile account with ACRA. Once the financial statements have been carefully drafted, the next steps involve generating the XBRL template and uploading the XBRL filings following ACRA’s guidelines. It’s important to ensure that the XBRL filings are accurate and comply with the requirements of the chosen template.
Conclusion
Certain companies are required to submit their financial statements in XBRL format in Singapore, as is the case in many countries around the world. This is important to ensure that your company meets international standards and keeps its information consistent. However, filing financial statements in XBRL can be a difficult and time-consuming process.
That’s why many companies turn to professional service providers like Timcole for assistance. Timcole can provide comprehensive support in preparing and filing financial statements in XBRL format, ensuring that companies comply with regulatory requirements and submit accurate financial information.
