What is the Need of XBRL Filing for Singapore Registered Company
As per the ACRA’s directive, XBRL filing is mandatory for all Singaporean companies, limited or unlimited by shares. The obligation adds to their workload and their overheads. Still, they have to follow it. Many MNCs and Medium-sized companies outsource it to a reliable XBRL filing services provider.
Why XBRL Filing is Necessary
Earlier companies used to transmit their financial info to ACRA using formats of their choice. These are difficult to read, even for sophisticated computer programs. So, ACRA mandated the use of the XBRL format for the purpose. The financial data in a single format is easy to read and mine.
To comply with the directive, Singapore companies have to convert data in their financial statements into XBRL format. ACRA expects them to stick to the revised XBRL filing requirements that came into force on May 1, 2021.
This data is accessible to the general public. It is good news for the companies. Investors use this data to analyse and monitor your company’s financial performance. It gives them financial insights to make data-driven investment decisions.
The government and financial institutes also use this data to reveal trends in the Singaporean economy and make policy changes.
ACRA has updated XBRL taxonomies and reduced the number of data elements to ease the data conversion. If you want to do it on your own, you will need to implement accounting principles and concepts and use XBRL data elements properly.
Who Needs to do XBRL Filing in Singapore
As per the ACRA’s instructions:
If you run a company registered out of Singapore, you only need to file your company’s Financial Statements (FS) in PDF format
If your company is limited by guarantee, you need to file its FS in PDF format
A non-solvent Singapore Exempt Private Company must file a full set of FS in XBRL format or FS highlights in XBRL format with FS in PDF format
A bank, financial, or Insurance company needs to file the highlights of its FS in XBRL format in addition to FS in PDF format
If you run any other type of company, file its complete set of FS in XBRL format
Revised XBRL Filing Requirements
You will need to use one of the four templates presented below for your XBRL filing:
Full XBRL template: ACRA has reduced the number of data elements to 210. It will help you convert info in primary statements and selected notes to FS.
Simplified XBRL template: Instead of XBRL FSH (General), use the Simplified XBRL template. Use 120 data elements in this template to capture info about a business’s financial status from your statements.
XBRL FSH (Banks) template: You can use around 80 data elements in XBRL FSH (Banks) template for your purpose.
XBRL FSH (Insurance) template: You can use around 80 data elements in XBRL FSH (Insurance) template for your purpose.
Benefits of Outsourcing XBRL Filing in Singapore
XBRL filing is a time-consuming and non-core task. So it matters how much time you can spend on it. You also need to calculate how such a commitment will affect your prospect. As a small business owner who multi-tasks to make ends meet, you should thoroughly check your options.
Accuracy matters while converting your company’s financial statements in the XBRL format. Unless you are ready to invest a fair amount of time and knowledge, appoint a provider of services for XBRL filing in Singapore. Their expert accountants can do it for you accurately to ensure your compliance.
Enlisting a firm for XBRL filing in Singapore will save you time, manual work, and resources. You can use the saved resources to grow your business.
Reduce Resource Management
You need to interview, hire, train, or fire an accountant when you have an in-house setup. It is complicated and energy-sapping work. You also have to spend on infrastructure, office space, software, or the internet. Once you outsource a business’ XBRL filing, your provider must deal with these issues. It is a great help.
If you have any doubts about your ability to do XBRL filing for your business, hire an experienced in-house accountant or an XBRL filing services provider. These professionals have updated knowledge of the latest changes in their field. They are your best resource for an up-to-date XBRL report.
XBRL filing in Singapore is part and parcel of statutory compliance. It adds to your administrative work and costs. On the other hand, it can bring valuable investment into your business, enabling it to grow and expand.
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