eXtensible Business Reporting Language (XBRL), despite its apparent complexity, is essentially all about simplicity. Companies in Singapore standardize the structure of online financial statement filings using XBRL, an XML-based language.
The need for XBRL filing in Singapore stems from making it simpler for the state to process the compiled data and base regulatory decisions on it.
This article will discuss XBRL filing in Singapore and why companies need it.
What Exactly Is XBRL Filing In Singapore?
An XML-based language called XBRL enables global online reporting of corporate and financial data. Financial analysts and managers utilize it as open-source software to gather and analyze data. Businesses utilize it as well to accurately and reliably transmit financial data online.
The Accounting and Corporate Regulatory Authority (ACRA) has implemented XBRL filing to encourage dialogue and cooperation among business owners. Additionally, it facilitates information integration into global business networks and simplifies financial reporting.
Who Is In Charge Of XBRL Submission?
The directors of all Singaporean firms, in accordance with ACRA, make sure the XBRL files are timely finished. Currently, most Singaporean businesses use external accountants to do their XBRL filings. One of the Singapore-based XBRL service providers is Relin Consultants.
Despite the work being outsourced, the company’s directors are still in charge and must ensure the hired accountants finish the file correctly. The directors must therefore be aware of Singapore’s XBRL requirement, especially for business owners who want to comply with the regulations and avoid penalties.
How XBRL Works?
Identification tags are added to data objects under XML so that computer software can process them effectively. Financial data items, such as “net profit,” might have distinctive identification tags appended.
These aren’t just specific identifiers, though. They include various details, such as whether the thing is monetary, a percentage thing, or a fraction thing. Any language labels, accounting references, or ancillary data can be added to objects using XBRL.
XBRL adds “information about information”, by utilizing “metadata” or “descriptive data” (tags). This enables computers to interact or communicate with one another without the need for human interaction.
XBRL Filing Process In Singapore
There are often only three general stages needed to complete an XBRL filing. Since ACRA Singapore provides the BizFin server to deliver the XBRL filing, the entire filing process to the Singaporean authority is substantially quicker. In order to create the financial statement in XBRL format, you can also download the program BizFin preparation tool.
In order to file for XBRL with ACRA-
- Create financial statements in any of the XBRL categories.
- Verify the XBRL file for mistakes by validating it.
- File your yearly return by uploading it to ACRA.
How Can XBRL Filing Benefit Your Business?
For all parties engaged in the usage of financial data, XBRL offers considerable benefits in the analysis and transmission of corporate information. These benefits include cost savings, increased efficiency, and improved accuracy and reliability.
2. Data Transparency
The ability to quickly and easily split data for software-based analysis, which gives business analytics a much wider scope and a greater level of complexity than manual comparison of financial statements, is one of XBRL’s main advantages. This leads to greater transparency.
Investors and stock traders can make informed investment selections with the use of trustworthy financial data regarding a company’s performance. Financial analysts, institutions, and regulators can all benefit from data submitted in XBRL format.
3. Trust Building
The information submitted in XBRL format is helpful to businesses when they file their taxes and display facts like production output, inventories, etc. Everyone may use it, and it helps establish trust and raise money for business growth.
4. Reporting and Gathering of Data
Using XBRL, businesses, financial data suppliers, and business reports can automate data collection processes. For instance, if the sources of information have been converted to utilize XBRL, data from numerous company divisions with various accounting systems may be gathered quickly, affordably, and effectively. Once data has been gathered in XBRL, it is simple to build various reports based on different subsets of the data.
To put it briefly, ACRA’s change to XBRL reporting lessens the amount of paperwork for auditors, regulators, financial analysts, and financial institutions while also giving them access to Singapore’s financial database.
However, converting XBRL demands technical expertise and in-depth knowledge. The team of professionals at Relin Consultants can assist you with this. You may free yourself from accounting concerns and concentrate on expanding your business by hiring our accountants.