With the emergence of the new global business environment, the importance of being able to report their financial situation as clearly and uniformly as possible is paramount. The need for a more efficient way of reporting and expressing financial information is well served by eXtensible Business Reporting Language (XBRL). In Singapore, the Accounting and Corporate Regulatory Authority (ACRA) requires the use of XBRL for filing and as a result maintains homogeneity and comparability of filings. This article will explore the specifics of filing in XBRL in Singapore and provide information necessary to businesses completing this mandatory task.
Understanding XBRL Filing
XBRL is an international language used for transferring business information, particularly financial information. It employs the XML (eXtensible Markup Language) format in capturing and encoding the financial documents for improved analysis and sharing. The intention of implementing XBRL in Singapore is to enhance the relevance, quality and availability of financial reporting data.
Requirements for XBRL Filing in Singapore
1. Who Must File XBRL?
In Singapore, the following entities are generally required to file their financial statements in XBRL format:
- All companies incorporated in Singapore, except for:
- Solvent exempt private companies (EPCs)
- Dormant companies
- Companies allowed to prepare financial statements in accordance with IFRS.
2. Types of Financial Statements Required
ACRA specifies different filing requirements based on company type:
- Full XBRL: For companies that present full set financial statements under Singapore Financial Reporting Standards (SFRS) or IFRS.
- XBRL FSH (General): For the solvent EPCs and companies in the specific industries (for example banks, insurance companies) who prepared the financial statements in accordance with FRS and who do not prepare the consolidated financial statements.
- XBRL FSH (Banks): For banks that is preparing the financial statements under the provision of the Banking Act.
3. XBRL Preparation Tools
This method requires companies to prepare XBRL financial statements through ACRA’s BizFinx preparation tool. This tool helps the preparer to follow a step-by-step approach to meeting all of the requirements for financial reporting.
The XBRL Filing Process in Singapore
Step 1: Preparation of Financial Statements
You should start by compiling your financial statements in SFRS or IFRS as applicable. Make all data related to finances as authentic as possible before converting it into XBRL.
Step 2: Download and Use BizFinx Preparation Tool
- Download the Tool: Go to ACRA’s BizFinx portal and get the preparation tool.
- Install the Tool: Follow the installation instructions to set up the tool on your computer.
- Input Data: Input the necessary financial data into the tool. At one time, the tool will take you to other fields to complete information that may be needed.
Step 3: Validation and Error Checking
- Validate Entries: You need to choose the validation option in the BizFinx tool to solve issues in the data you entered.
- Correct Errors: Correct any issues that may arise from the validation process to conform to the set requirements by ACRA.
Step 4: Generate XBRL File
After validation, use the BizFinx tool to create the XBRL file. This file will be formatted appropriately so as to be submitted to the ACRA.
Step 5: Submission to ACRA
- Log in to BizFile+: You need to log into the ACRA BizFile+ with your SingPass or CorpPass login credentials.
- Upload XBRL File: Go to the XBRL filing section and submit your XBRL filing.
- Review and Submit: All the data that have been uploaded should be checked and reviewed before making the final submission.
Step 6: Confirmation and Acknowledgment
On submission, you are assured of a response from ACRA indicating that they have received your XBRL filing.
Tips for Successful XBRL Filing
- Plan Ahead: Begin the process well in advance to minimize stress and chances of mistakes.
- Stay Updated: Be alert for any changes in XBRL filing procedures or developments in the software from ACRA.
- Seek Professional Help: If you are unsure of XBRL filing, it may be advisable to consult the services of professional accountants.
Conclusion
XBRL filing is an important part of financial reporting in Singapore and it helps to maintain transparency and comparability with other companies’ reports. But, by being aware of the ACRA requirements and following the systematic steps to file, businesses can easily register with the requirements. The use of BizFinx preparation tool and adherence to best practices will ensure that filing of documents is efficient and accurate thus sustaining high regulatory compliance and financial governance among the companies.
Additional information is available on ACRA’s website or by seeking the assistance of accounting firms specializing in XBRL filings.