Yes, XBRL filing is mandatory for Singapore companies limited or unlimited by shares. It means they must file their full set of financial statements in XBRL format. The directive has enabled ACRA to receive financial data in standard presentation format.
Why is XBRL Filing Mandatory in Singapore?
XBRL, or eXtensible Business Reporting Language, is a form of XML. It is used to exchange business’ financial information.
Uniformly structured data is easy to handle using the latest computer software. It is easy to read, write, store, analyse, and mine for the emerging trends. ACRA achieves it through XBRL format.
ACRA also trusts that the use of XBRL will ultimately facilitate business development. It will generate insightful financial information, create a better regulatory climate, improve and transparency. It will also make various financial information available to investors in a timely manner.
The data collected through XBRL filing is also useful to auditors, regulators, financial analysts, and financial institutions. They can reduce manual work by automating the data processing using robust computer software.
ACRA holds directors responsible for their company’s XBRL filing. So as a director or stakeholder, you can choose to do it in-house or appoint a provider of XBRL filing services in Singapore. You will need to convert the data in your financial statements to XBRL format.
Your in-house accountant or expert from XBRL filing services Singapore first use business’ financial statements. The map info in these documents to the relevant tags in XBRL taxonomies recommended by ACRA.
To do this, they need to know the accounting concepts and the proper use of tags. It is a time-consuming and human-resource intensive task. It is one of the main reasons why businesses outsource it to experienced providers XBRL filing services Singapore.
These providers employ a team of expert accountants who are conversant with the Singapore Financial Reporting Standards (SFRS) and SFRS for Small Entities. They are also aware of the latest changes in XBRL filing requirements.
Revised XBRL Filing Requirements
Currently, they do the XBRL filing as per the revised XBRL filing requirements of 2020. These came into force on May 1, 2021. Depending on the type of your business, they use one of the recommended templates to do your XBRL filing:
Full XBRL template
Simplified XBRL template
XBRL FSH (Banks) template
XBRL FSH (Insurance) template
Your accountant or your provider may use one of the options listed below to prepare XBRL financial statement for you:
BizFinx preparation tool and then BizFile+ portal to file your Annual Return (AR)
Accounting software to prepare and file AR
Who Needs to Do XBRL Filing?
If you do not know whether or not you should file your FS in XBRL format, go ahead and read the list presented below. Depending on the type of business you run, it also gives suggestions on the documents you need to prepare and submit during your XBRL filing.
If you run a public or private company limited or unlimited by shares, you will need to file a full set of Financial Statements (FS) in XBRL format
If you run one of the commercial & merchant banks, insurance or a finance company (regulated by MAS), file Financial Statements Highlights (FSH) in XBRL format, plus a PDF copy of the FS
If you run a company that uses accounting standards other than SFRS, SFRS for Small Entities, and IFRS, file FSH in XBRL format, plus a PDF copy of the FS
If you run an insolvent EPC, file a full set of FS in XBRL format; or FSH in XBRL format, plus a PDF copy of the FS
If you run a company limited by guarantee or a branch office of a foreign company, file a PDF copy of the FS
Appoint a Firm for XBRL Filing Services Singapore
You may have noticed that the ACRA is revising the XBRL filing requirements frequently. It means extra work for you to stay updated. Otherwise, you are going to find it difficult to do your business’ XBRL filing on your own. You may even get into trouble.
The need, in all likelihood, can take your focus away from the core goals and objectives of your business. And as a business owner is where you must focus your energies and resources. The alternative is to enlist the services of an experienced provider of XBRL filing services Singapore.
Their expert accountants are habitual in rendering professional XBRL services to their clients on a daily basis. They are familiar with the changes in the taxonomies. They know the proper use of data elements therein to convert your info into your financial statements correctly. And they have a higher chance of preparing an accurate XBRL report for you. Letting experts take care of XBRL filing also relieves the stress that comes with the execution of compliance-related tasks.
Appointing a third-party firm for XBRL filing services Singapore, gives you a breathing space. It saves your time and gives you a chance to marshal your resources. Freed, Relieved of the responsibility, you get to focus all your attention on the core goals and objectives of your business.