XBRL Financial Statements and Filing Requirements
There is more to starting a business in Singapore than meets the eye. While every investor will venture into business with the main aim of making profits, every activity in the operation of the business has to be done transparently and revealed through financial reporting. The report is expected to show how the business is operating, which should be according to the laid down government regulations in Singapore.
The meaning of XBRL Financial Statements Reporting
XBRL financial statements reporting is a written form of communication to the managers of a company, government agencies that are mandated and the investors that have vested interests in the company. The report shows the financial status and the path that it has followed to its current stability at the time of reporting. It includes the income generated, the cash flow, equity of the shareholders and the balance sheets that support the given information.
The authorities in Singapore are very sensitive on how businesses are conducted. In that case, the use of XBRL financial reporting ensures that the process is done transparently and according to the set of Singapore regulations. All businesses in Singapore should comply with the relevant regulations and that is where there ought to be a way of regulating all the operations, otherwise underhand deals conducted by unscrupulous companies can hurt the economy of the country and scare the investors away.
XBRL and it’s importance in financial statements reporting
The eXtensible Business Reporting Language (XBRL) is used by business entities when reporting their financial standings annually electronically. It’s a standard mode of financial data reporting worldwide. Some other systems for reporting are also available but XBRL has more benefits because for the analysis and the communication of the required business financial information.
The system saves significant costs and its efficiency and accuracy in the reporting is comparable to none. It’s powerful structures helps to relay profound information about a company after converting it to the suitable and understandable data between computers before it is converted to a human understandable information. This ensures the relaying of uniform reporting across different platforms and sectors, and hence its global popularity.
XBRL needs to be reported by certain types of companies in Singapore, and if it meets the criteria for such unless the company is exempted. These companies needs to file the XBRL financial statements to ACRA BizFile portal every year when performing the annual returns filing.
Who needs to file XRBL Financial Statements?
Most Singapore companies must file their full set of financial statements in XBRL format with ACRA. That is in line with the minimum requirement list which is within the ACRA Taxonomy. Previously, filing option B which is partial XBRL was available. However, now that is no longer valid and available. The only option is to file the full set of financial statements in XBRL format.
Most public and private companies who are limited or unlimited by shares must file XBRL. Exception would include some companies regulated by MAS such as banks and finance companies. Others who need to file full XBRL include insolvent exempt private companies.
However, if a company is a solvent exempt private companies, then they do not need to file full XBRL. Instead, they are encouraged to file full XBRL financials or financial statements highlights in XBRL format.
Preparing and filing the financial statements in XBRL format can be confusing. At times, you can be frustrated with this. If you need professional secretary and accounting firm to assist you with this, you may reach out to J Accounting Services. All you need is to contact J Accounting for help.
