A language used in computers to show financial statements so getting and transmitting online records would easily be directed to users such as auditors, regulators, financial analysts for several uses is called XBRL which means extensible Business Reporting Language.
What Is XBRL
On November 1, 2007, there has been a different filing requirement for Singapore incorporated companies in filing their financial statements (FS) which is in XBRL format, it was implemented by the Accounting & Corporate Regulatory Authority (ACRA).
What’s the reason for using the XBRL format? Why the need for XBRL?
What Is XBRL
In the current set up, all companies are using the PDF format with their files. According to ACRA, the usage of XBRL enables the companies to accomplish several objectives like the facilitation of business conduct in Singapore, being able to give useful financial information and upgrading the regulatory environment with enhanced transparency and on-time circulation of important financial details.
Who is accountable for the right representation and accuracy of information?
FS in XBRL format filed with ACRA will be corrected and always checked for accuracy by the directors of the company. They are therefore advised to check the information to be filed before authorizing their company or authorised persons to submit the information on behalf of the company to ACRA.
What are businesses not involved XBRL filing?
The new filing requirement will not apply to:
Businesses that are permitted by law to procure accounts in accordance with accounting standards other than the Singapore Financial Reporting Standards or the International Financial Reporting Standards; companies limited by guarantee; and
Companies overseas and their local branches banks, insurance companies and finance companies whose activities are regulated by the Monetary Authority of Singapore;
Companies in the excluded category shall continue to file their FS by attaching a PDF copy of the FS as tabled at or used for the purposes of their Annual General Meeting (“AGM”).
Solvent exempt private companies (“EPCs”) will continue to be exempted from filing their FS with ACRA. Insolvent EPCs and EPCs that are required by law to file their FS with ACRA will do so in XBRL format.
How would I know if my company needs to file in XBRL?
The two needed criteria to be followed in filing FS in XBRL format
• The company’s FS ends on or after 30 April 2007;
• The company is filing its Annual Returns on or after 1 November 2007
What is the process in filing?
You can either:
Do it all by yourself with the help of Bizfile website and going to the step by step procedure in preparing XBRL report.
Give yourself a break; get a professional service provider to do the whole process.
“FS Manager” which is a tool from the ACRA website www.bizfile.gov.sg allows a company to complete and manage their FS in XBRL online.
There are two filing options:
Option A – Full XBRL (filing its full set of FS in XBRL format);
Option B – Partial XBRL (filing only its balance sheet, income statement and mandatory information in XBRL format and PDF copy of FS presented at company’s AGM).
Option B is available from 1 November 2007 to 31 October 2008.The continuation of option B after October 2008 will only be declared by ACRA.
A company that chooses Option B will be required to file a PDF copy of its FS in addition to the balance sheet and income statement in XBRL format.
What are the good things about Outsourcing when I can do it myself?
Since directors are accountable for the accurate representation and information filed, many times, it is not something that directors or owners of businesses leave to the juniors to do. The whole process of filling won’t be easy for the directors because it will take a long period of time.
If you will outsource the filing process to a professional service firm, you will no longer have to worry about the things that your company badly needs. For a small investment, you are likely to save a lot of your time which can be devoted to doing more business, rather than going through the hassles of figuring out how to use the system, extracting what to disclose, keying in, and checking.
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Our phones are answered during business hours by specialists and not by an answering machine. We appreciate the value of your time and understand that a person cannot be replaced by technology. This is especially true when it comes to making important business decisions. If you are interested in learning more about Asiabizservices kindly email us at email@example.com or give us a call at +6563034614.
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