Advantages and Disadvantages of XBRL Filing in Malaysia
As the world transitions into the digital space, the shift towards digital reporting for companies in Malaysia is underway. Up until now, all Malaysian-based companies used to submit their financial statements to the SSM (Suruhanjaya Syarikat Malaysia) via print or over the counter. However, with the advent of technology, all Malaysia-based companies other than banking, finance, and insurance companies regulated by Bank Negara Malaysia are encouraged to submit their financial statements in the XBRL format digitally. Let’s see whether this change is going to benefit companies or is going to be another obstacle.
Advantages of XBRL Filing
- Reduces the Need for Manual Entries
Manual entries, as the name suggests, is not only a time-consuming process, but also an error-prone one. XBRL reduces the need for manual entries, meaning more time can be spent on data analysis.
- More Economical in the Long Run
Preparing and filing financial statements with SSM is a several stage process that involves a lot of hassles and costs. XBRL filing, on the other hand, provides scalability and a reduction in total costs. In addition to this, partnering with an experienced XBRL conversion service provider can ensure quick and error-free reporting.
- Efficient Streamlined Process
The overall preparation of financial reports is highly iterative and comes with strict deadlines. The need to deal with a lot of numbers and even more edits can be daunting if you don’t have an efficient process. XBRL reporting solutions offer a centralized way of working where any and all changes performed in one document can be instantaneously reflected in other documents, making it more accurate and streamlined.
Disadvantages of XBRL Filing
- Inexperienced Users
Not all accountants possess prowess in the XBRL language; some have only heard about the taxonomy and language. XBRL’s complexity, combined with the inexperience, can create discrepancies in the financial data, which can lead to bad decision-making. But the solution is simple, hire an expert XBRL professional or outsource the entire reporting process to a credible XBRL conversion service provider.
- Room for Errors
The XBRL taxonomy and tagging can be challenging and full of errors if one doesn’t have specialization in the language. This is the reason that most businesses outsource the XBRL conversion and reporting services to reputable service providers.
XBRL Reporting Made Easy
The benefits are many, but with the complexities of XBRL filing and reporting, it can be daunting. However, with a global leader in regulatory compliance software and service partner like DataTracks, you can put all your filing and reporting worries at bay. With the dedicated and highly experienced team of financial experts specialized in SSM taxonomy and Malaysian accounting standards, DataTracks boasts quality management and error-free reporting. For more information on the services, please speak to an expert @ +60-392-126-125.