Decoding the Malaysian Business Reporting System by SSM
In November 2018, the Companies Commission of Malaysia, i.e., Suruhanjaya Syarikat Malaysia (SSM), shifted their approach of business reporting from print or over-the-counter to XBRL standard of reporting using MBRS.
By introducing MBRS, SSM has aimed to achieve compliant digitization of annual returns (AR), financial statements and reports (FS), and exemption applications related to the FS and AR.
What is MBRS?
Malaysian Business Reporting System (MBRS) is a submission platform based on the eXtensible Business Reporting Language format.
All companies incorporated in Malaysia and registered with SSM (except Bank Negara Malaysia regulated banking, insurance, and financing organizations) are bound to submit their annual statutory business reports to the SSM are now encouraged to submit the reports in XBRL format digitally using the MBRS.
While SSM has kept XBRL filing requirements voluntary to assist smooth and seamless MBRS training to all companies, it will become a mandate soon, encompassing over 1.2 million companies to file financial and other business reports in XBRL format.
Basis of MBRS
The following financial and non-financial scopes serve as the guiding principles for the MBRS:
- Companies Act 2016
- Malaysian Private Entities Reporting Standards (MPERS)
- Malaysian Financial Reporting Standards (MFRS) for public companies
- SSM Taxonomy (SSMxT): Based on the IFRS Taxonomy 2017, it’s the dictionary of financial and non-financial reporting elements of AR, FS, and EA, embedded in the MBRS preparation tool.
- mTool: An excel-based tool that facilitates the preparation of business reports and statements in XBRL format using the SSM taxonomy.
- mPortal: A submission platform that allows users to file financial returns in XBRL format. It has various features like a submission status tracking system, downloadable templates, digital signing, payment facilities, etc., for seamless filing.
The Scope of Submission
The ‘MBRS Summary- Scope of Submission’ gives a fair idea to the users on the scope of MBRS filing for annual returns, financial statements, and exemption applications for varied industries and business entities and which industries are exempted from MBRS filing requirements.
Merits of MBRS & XBRL Format Reporting
Not only for SSM, but MBRS confers many benefits to businesses. Some of the key advantages of XBRL format reporting on MBRS are as follows:
- Streamlined data entry efforts due to easy alignment and digitalization, thus, saving the company’s costs and time.
- Highly flexible as it accommodates handling and translation in multiple languages
- Easy elimination of errors ensuring greater data integrity and reliability.
- Better corporate compliance and processes as all accounts are standardized as per the Companies Act 2016, MFRS, MPERS.
- Enhanced MBRS features allow companies to benefit from in-depth analysis and validation processes.
- High data safety measures for all your filings.
- The process takes only 3-5 business days, making it a prompt and effective filing system.
A pioneer in the field of XBRL conversion for business statements and reports, DataTracks has a team of highly experienced professionals with expertise in IFRS regulations, local GAAP, and SSM taxonomies. It is always better to seek professional help from financial experts like DataTracks for cost-effective and error-free XBRL conversion services. For further details, reach out to our team at firstname.lastname@example.org
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