Know which Companies Are Required to Submit Financial Statements in XBRL Format to SSM MBRS?
Back in 2018, Suruhanjaya Syarikat Malaysia (SSM), the regulatory authority of Malaysia, launched MBRS (Malaysian Business Reporting System). MBRS is an online digital reporting and submission portal based on the eXtensible Business Reporting Language format, commonly known as the XBRL format.
To date, more than 60 developed countries have adopted the XBRL platform, including South Africa, Singapore, Europe, the USA, and now Malaysia.
Even though XBRL is yet to be mandated by the SSM, word has it that it will be soon. And before that happens, it’s essential to be prepared. So, here’s an informational article covering what needs to be filed, who needs to comply, and which companies will be exempt from filing.
Let’s begin by answering the question of the hour – Who needs to file in XBRL?
Who Needs to Comply with These XBRL Requirements?
All companies, enterprises or firms incorporated in Malaysia must submit their annual statutory financial statements to the SSM. As far as foreign companies registered under the Company Act 2016 are concerned:
- If the company is incorporated in Malaysia, forms AR1, AR2, and AR4 must be filed with exemptions of forms EA 7 and EA 8.
- If the company/enterprise is not registered in Malaysia, only form AR3 needs to be filed with exemptions of EA 7 and EA 8.
- AR 1 – Annual return for companies having a share capital.
- AR 2 – Annual return for companies that don’t have a share capital.
- AR 3 – Annual return for foreign companies.
- AR 4 – Annual return for unchanged particulars.
- EA 7 – Application for extension of time to lodge the annual return.
- EA 8 – Application to Minister with respect to Financial Statements and Reports or Annual Returns.
Which Documents Do You Need to File in XBRL or MBRS?
Based on the nature of the company, the following documents need to be filed:-
- AR (Annual Return);
- FS (Financial Statements and Reports); and
- EA (Exemption Applications) related to the AR and FS applications
Are There Any Exemptions?
Banking, finance and insurance companies regulated by the Bank Negara Malaysia are the only ones exempt from furnishing a full set of Financial Statements through MBRS. However, the following documents need to be filed:-
- If your company is other than a banking, financing and insurance company regulated under the Bank Negara Malaysia, all FS, EA and KFI (Key Financial Indicators) need to be filed.
- If a company is registered as a foreign company under the Company Act, 2016, FS (prepared using MFRS – Malaysian Financial Reporting Standards), KFI, and form EA 3 need to be filed.
Need Assistance with Preparing Financial Statements in the XBRL Format?
DataTracks, a global leader in compliance reporting, is the ideal choice. With a commendable track record of preparing 200,000 reports for 19,900 clients worldwide, DataTracks has always been focused on curating high quality and error-free reports. So what are you waiting for? Make the transition to XBRL TODAY!
To know more about their services, please speak to an XBRL expert @ +60-392-126-125 or email at firstname.lastname@example.org.