The extensible markup language-based format known as eXtensible Business Reporting Language (XBRL) is used to submit financial statements in accordance with IFRS.
This format is utilized all over the world because it makes it possible to process massive amounts of quantitative data and because it establishes a generally acknowledged standard structure for financial reporting.
If you are looking for XBRL filing service in singapore, then you should contact Relin Consultants.
Benefits of Filing in XBRL Format
- Financial reporting is given a consistent structure due to XBRL, which lowers the probability of mistakes or inconsistencies. It ensures that material is consistently formatted and appropriately represented by enforcing specified tagging standards. This lowers the possibility of misinterpretation and increases the overall correctness of financial accounts.
- Financial data may be processed and analyzed automatically via XBRL. Regulators and other stakeholders can quickly extract, compare, and evaluate data across various companies or eras with the help of XBRL-tagged information. Better benchmarking, trend analysis, and performance evaluation are made possible as a result, which leads to better decision-making.
- Many nations throughout the world have recognized and embraced XBRL as an international standard. By submitting financial statements in XBRL format, financial data is consistent and comparable across jurisdictions, enabling cross-border analysis and investment decision-making.
- By giving businesses an identical reporting structure, XBRL simplifies the compliance process. Companies can more easily comply with regulatory requirements when regulatory bodies outline those requirements in XBRL taxonomy. As a result, the regulatory process is streamlined, there is less need for manual involvement, and data entry mistakes are minimized.
- By offering a standardized, computer-readable format, XBRL increases the transparency of financial reporting. This makes it simple for stakeholders, including creditors, analysts, and investors, to obtain and understand financial data. As businesses are compelled to give accurate and consistent data, it encourages responsibility and builds faith and confidence in the reporting process.
- Financial reporting takes less time and effort because XBRL does not involve manual data entry or rekeying. The creation of reports is automated, improving the process’ effectiveness and efficiency. Instead of spending too much time on manual data processing, businesses may commit resources to more value-added activities like data analysis and strategic decision-making.
Who Is Not Required to File XBRL Documents?
In Singapore, the following business types are exempt from filing XBRL documents:
- Licensed insurers,
- merchant and commercial banks,
- finance firms governed by the Monetary Authority of Singapore (MAS), solvent exempt private corporations (solvent EPCs),
- Companies that use accounting standards other than Singapore Financial Reporting Standards (SFRS), SFRS for Small Entities, and IFRS.
Financial statements for the aforementioned companies may be submitted in PDF format. Financial Statements Highlights (FSH) submissions in XBRL format are also required from banks, financing businesses, and insurers.
The following options are used by insolvent EPCs to submit a complete set of financial statements:
- In PDF format together with a streamlined XBRL template;
- in full XBRL format.
What Particular Information Has to Be Included in Financial Statements Filed in XBRL Format?
Companies must submit the required data in XBRL format in order to comply with XBRL filing requirements, including:
- the directors’ statement’s selected data and the audit reports;
- financial position statement, income statement, and cash flow statement;
- notes related to earnings, provisions, share capital, related parties, and employee perks, etc.
When Is the XBRL Filing Deadline?
After the fiscal year concludes, Singaporean businesses are required to prepare their financial statements in XBRL. For listed firms, the XBRL filing deadline is five months after the fiscal year ends; for unlisted companies, it is seven months. If a business submits its XBRL financial statements late or with an outdated presentation, ACRA can impose a penalty.
Hiring of a reputable corporate services provider such as Relin Consultants is the simplest way to prevent errors in financial reporting.
The team of professionals will help you submit financial statements in XBRL format.
Reach out to us at Relin Consultants – Leading Global Business Set Up Partners for further assistance.
