Mitigate the Financial Reporting Challenges with XBRL
Though slow to garner attention, boasting error-free and accurate financial data, XBRL now commands global recognition.
In Malaysia, this revolution took a long time to transpire; however, since 2018, XBRL has maintained a strong position in the financial reporting world. Be it business regulators, investors, accountants, or other users; everyone seems to have realised the potential of XBRL. XBRL has truly revolutionized the financial reporting system in the country.
XBRL: The Foolproof Way of Mitigating Reporting Challenges!
First things first, XBRL is a financial reporting tool, not a cure. Even though automation of the financial reporting process through XBRL offers enormous benefits, it is principally a tool that enhances the overall output and quality of financial reports.
Here’s How XBRL Helps Mitigate Financial Reporting Challenges
● Enhances Credibility
Losing market credibility and the confidence of the public and stakeholders will be every business owner’s nightmare. Credibility and trustworthiness are fundamental to the expansion and success of an organisation. This is where XBRL stands apart – Financials submitted in the XBRL format boasts of high quality, more transparency, and accuracy, which is why it significantly enhances the credibility of financial information being reported.
● Greater Data Mining Capability and Better Comparability
It is possible to search across several XBRL documents at once and extract specific data. This helps auditors and business owners sift through financial information to make critical business decisions, be it in terms of expansion, diversification, or ramming down a specific project or department. With greater data mining capabilities and reliability of the information, XBRL helps mitigate the challenge of data comparability and analysis.
● Dramatically Improves the Usefulness of Financial Information
The information submitted in regulatory filings in the XBRL format is being used by analysts and investors; the data within these reports are searchable, retrievable, and interactive. This means that the usefulness of the entire data improves dramatically.
XBRL Levels the Playing Field
By allowing business owners, auditors, and analysts access to standardised quality financial reports, XBRL levels the playing field for users of this information. However, despite the benefits, there are innumerable things that can go wrong with your XBRL filings. How will you identify those errors before you file? Is your current financial reporting process optimised to produce error-free reports?
Associating with a credible partner like DataTracks, you can mitigate the risks and ensure quality XBRL submission to the SSM. DataTracks has extensive experience in working with companies all over the globe to help them understand, furnish, and report XBRL compliant financial statements.
To establish an effective and streamlined framework that is tailored to your organisation’s specific needs, please speak to a DataTracks expert @ +60-392-126-125.