How to Prepare XBRL / MBRS Financial Statements for Filing with SSM?

In Malaysia, both public and private companies must register with Suruhanjaya Syarikat Malaysia (SSM), the Malaysian Regulator. In 2018, SSM introduced a digital submission platform, Malaysian Business Reporting System (MBRS), based on the XBRL format. MBRS allows for the annual digital filings of the following:

Annual Returns (AR)
Financial Statements and Reports (FS)
Exemption Applications (EA) related to AR and FS applications

With the XBRL mandate just around the corner, companies in Malaysia must move towards MBRS filing of financial statements to comply with SSM requirements. The following blog discusses how businesses can prepare their financial statements in XBRL format for MBRS filing with SSM. Read on to find out.

Prepare and Generate XBRL Reports for SSM MBRS Filing

There are three components of MBRS: SSM taxonomy, the MBRS preparation tool, and the MBRS portal. The MBRS preparation tool or mTool is used to prepare XBRL reports, which can be submitted through the MBRS portal or mPortal. Preparers should also know the financial reporting standards and taxonomies available in XBRL to use the mTool.

SSM Taxonomy (SSMxT): It includes financial and non-financial reporting elements of AR, FS, and EA embedded in the mTool. The SSM taxonomy is based on Malaysian Private Entities Reporting Standards (MPERS) for private companies or Malaysian Financial Reporting Standards (MFRS) for public companies.
MBRS Tool (mTool): It is an excel-based tool that allows companies to prepare and generate annual returns, financial statements, and exemption applications in XBRL format using the latest SSM taxonomy.
MBRS Portal (mPortal): It is a submission platform that allows users to file online XBRL reports generated by the mTool. Furthermore, the tool lets users download the required templates, use digital signatures, track the submission status, utilise payment facilities, etc.

Step-By-Step Guide to Prepare XBRL reports of Financial Statements for MBRS Filing

Follow this step-by-step guide to prepare XBRL reports for SSM (Suruhanjaya Syarikat Malaysia) filing via MBRS (Malaysian Business Reporting System). Generating financial statements for submission involves using the MBRS Preparation Tool (mTool). Here is a comprehensive guide with each step thoroughly explained as you requested:

From the launch page of mTool, you need to select one of the three submission types: Annual Return, Financial Statements, or Exemption Applications.
Fill in the information as per the “Filing Information” window to create the MBRS template.
Complete the scoping questions.
Complete the MBRS template by extracting relevant data from audited financial statements and mapping them to the appropriate cells in the template.
Execute validation checks and rectify errors.
Generate an XBRL/MBRS upload file.
Upload the XBRL/MBRS file on the mPortal.

Understanding the Submission Types

When using the mTool, the first step is to choose the appropriate submission type for your requirements, such as Annual Returns, Financial Statements, or Exemption Applications. This choice is crucial as it sets the foundation and specifications for the report you will be creating. Having a thorough grasp of each type’s particular requirements can greatly improve the precision and significance of your submission, in line with the SSM’s standards.

Filing Information

After choosing your submission type, you’ll need to provide the necessary information in the “Filing Information” window. Entering specific information about your company and the reporting period is a critical step. Precision in this data is crucial for a smooth submission. Make sure to carefully review all entries for accuracy.

Scoping Questions

Scoping questions are a valuable tool for customising the MBRS template to align with your company’s unique reporting requirements. This questionnaire aims to simplify the process by eliminating unnecessary sections and concentrating on essential information. Grasping the significance of each question can significantly enhance the efficiency of your report preparation, ultimately saving time and resources.

Finishing up the MBRS Template

Converting information from audited financial statements into the MBRS template requires a high level of accuracy. It’s not just about moving numbers around; it’s crucial to grasp the fundamental financial principles and how they align with the XBRL taxonomy. At this stage, your financial and accounting skills are crucial for accurately representing and categorising every piece of data.

Perform Validation Checks

Once the template is finished, validation checks need to be run. These checks are meant to pinpoint any errors or inconsistencies in your filing. Ensure to carefully review the validation report and address any identified issues. Ensuring this step is completed is crucial for the acceptance of your submission.

Create XBRL/MBRS Upload File

After resolving all the identified issues from the validation checks, proceed to create the XBRL/MBRS upload file. This document is what you will need to submit to SSM. Make sure to keep a copy of this file for your records.

Please upload the XBRL/MBRS File on the mPortal.

Ensure the generated file is uploaded to the MBRS portal (mPortal) as the final step. For this step, you’ll need to log in to the portal, find the submission section, and upload your file. Once you’ve uploaded the file, you’ll get a confirmation of your submission. Please retain this confirmation for your records as evidence of submission.

Utilising XBRL Reports for Strategic Analysis
Aside from meeting requirements, creating XBRL reports allows finance professionals to thoroughly assess their company’s financial well-being and performance. With meticulous data and a consistent format, you can gain valuable insights for making strategic decisions, spotting trends, and comparing to industry benchmarks.

Get Professional Assistance to Prepare XBRL / MBRS Financial Statements

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Frequently Asked Questions on SSM MBRS

What are the tools and processes involved in filing XBRL reports for SSM MBRS?

The SSM MBRS system incorporates three main components: the SSM Taxonomy (SSMxT), which outlines the reporting elements for various submissions; the MBRS Tool (mTool), an Excel-based application for preparing reports in XBRL format; and the MBRS Portal (mPortal), a digital platform for submitting reports, accessing templates, and tracking submissions. This structure facilitates the streamlined and standardized reporting of financial and non-financial data to Malaysia’s SSM, accommodating different reporting standards like MPERS or MFRS based on the company’s classification.

What knowledge is required to use the mTool effectively?

To effectively use the mTool, you should understand:

Financial reporting standards like MPERS or MFRS applicable to your company.
XBRL taxonomies and their elements relevant to the reports you need to generate.
The functionalities and features of the mTool itself.

What are the benefits of using the mPortal for XBRL report submission?

The mPortal offers several benefits:

Online submission: Streamlines the filing process with no need for physical documents.
Digital signatures: Ensures document security and authenticity.
Submission tracking: Allows you to monitor the status of your submitted reports.
Payment facilities: Enables online payment of any associated fees.
Template downloads: Provides access to the latest templates for different report types.

How do I start the process of preparing XBRL reports for SSM filing using the mTool?

Begin by launching the mTool and selecting your submission type from Annual Return, Financial Statements, or Exemption Applications. This initial step is crucial for creating the MBRS template specific to your filing requirements.

What steps should I follow to ensure my XBRL/MBRS file is ready for upload on the mPortal?

After selecting the submission type, fill in the required information in the Filing Information window to generate the MBRS template. Proceed by answering the scoping questions, completing the template with data from your audited financial statements, and mapping this data to the correct cells in the template. Conduct validation checks, correct any errors, and then generate the XBRL/MBRS file for upload on the mPortal, ensuring compliance with SSM filing requirements.