All You Need to Know About XBRL and the MBRS System
There are over 1.38 million companies registered in Malaysia as of Dec 2020.
And every company is required to submit their financial statement to the SSM in the requisite format before the due date to avoid penalties, late fees, and possible legal action.
However, since Covid-19 and resulting social distancing norms, companies have been facing significant challenges in submitting their annual return over the counter. The SSM has been continually taking steps to streamline the process and exchange of information within the private sector. Introduction of the XBRL and MBRS System are the two significant steps in that direction.
Here’s the latest on XBRL and MBRS System:-
Latest Update on the MBRS System
The MBRS (Malaysian Business Reporting System) is an XBRL-based submission platform introduced by the SSM that allows the submission of annual returns (AR), financial statements & reports (FS), and exemption applications related to AR and FS.
Due to Covid-19, over the counter submission became a real challenge for Malaysian companies, which is why the SSM has now mandated submission of AR and FS through the MBRS System.
Since March 8 2021, companies are not allowed to lodge statutory documents at the counter for submissions that have been made mandatory through MBRS, which includes:-
- Annual Returns (AR);
- Certificate relating to an Exempt Private Company (EPC);
- Unaudited Financial Statements and reports (FS); and
- Exemption Application (EA) concerning mandatory AR or FS filings in MBRS as stated above
All the submissions need to be made through the MBRS system. If approval has been given for submission over the counter, please follow the latest format as per the SSM website.
Latest on the XBRL Front
Several countries like the USA, UK, Singapore, South Africa and India have already mandated the submission of annual financial statements in the XBRL format. Malaysia was next in line to adopt this reporting standard. However, since the pandemic hit, the Malaysian government has been trying to get their operations back to normal, so the adoption of XBRL still remains in the voluntary stage.
Government regulators are hopeful that XBRL will be mandated for companies registered in Malaysia as soon as things go back to normal. So you are just in the nick of time to start preparing for the transition to XBRL.
Brace Yourself for the XBRL Impact
With a reputable and trusted partner like DataTracks, you can transition to the XBRL filing standard before it is mandated. This way you can iron out the challenges before it becomes compulsory.
Over its reign of 16 years, DataTracks has filed 1,95,000 XBRL reports to clients all across the globe. By leveraging their conversion and compliance solutions, you can make your transition to XBRL smooth and hassle-free.
So what are you waiting for? Speak to a DataTracks expert TODAY @ +60-392-126-125 or drop an email @ firstname.lastname@example.org.