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).
Reason for using the XBRL format?Why the need for XBRL?
Presently, all companies are filing their FS in PDF format. ACRA believes that the use of XBRL will achieve the objectives of facilitating the conduct of business in Singapore, providing more value-added financial information and enhancing the regulatory environment with improved transparency and timely dissemination of relevant financial information.
Who will make certain of accurate details and correct representation?
The company director will be having the obligation of checking for the accuracy and maintaing correct FS in XBRL format filed in ACRA.So they are then suggested to check the whole files before submitting it to ACRA.
What are businesses not involved XBRL filing
The new filing requirement will not apply to:The current filing requirement is not applicable to:
* Companies that are allowed by law to prepare 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 that are registered abroad and as well as their local branches.
* Banks, insurance companies and finance companies whose activities are regulated by the Monetary Authority of Singapore;
Companies that are given the chance not to file XBRL will still be responsible in filing FS by attaching a PDF copy of FS for the 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.
What are the basis in determining whether my company need 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 are the steps in filing?
Visit the bizfile website which gives ideas on how to prepare XBRL and go through the essential steps by yourself.
Be relaxed and have the help from a professional service firm.
A certain website of ACRA known to be www.bizfile.gov.sg with the tool “FS Manager” will give companies the chance to file and manage their FS in XBRL.
Given below are the two filling 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 will be valid from November 1, 2001 to October 31, 2008.The continuation of option B after October 2008 will only be declared by ACRA.
If the company decided to choose option B they are now liable to submit and file a PDF of its FS to be added to the balance sheet and income statement in XBRL format.
If I can do it myself, what woulde be outsourcing can give me?
As directors are responsible for the correct representation and accuracy of the 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.
Outsourcing the filing to a professional service will help you to relax as they will be helping you provide for your company needs.When it comes to small businesses, hiring a professional service firm would make a big difference since they will be then be responsible on doing certain things which will give you the chance to work on the other part of the business.
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