Why Is It Better to File Annual Financials in XBRL Format Right From The Voluntary Phase?
XBRL Has Set a Foothold in Malaysia
The XBRL-based financial reporting system was introduced in 2018, in line with the International Financial Reporting Standards and the Malaysian Financial Reporting Standards (MFRS). However, it wasn’t until after the launch of the MBRS system that XBRL transformed the financial reporting landscape of Malaysia. The earlier you get acquainted with this system, the better benefits you can reap from this emerging technology.
Companies not only in Malaysia, but worldwide is adopting this new way of financial reporting, and here are some reasons why:-
● It has digitised business reporting, making it more transparent.
● It has become the medium of communication between businesses and users of financial information.
● It allows better information, benchmarking, and more frequent reviews of financial statements.
● Better investment decisions can be made with XBRL-based financial reports.
How Can You Benefit by Using XBRL While It is Still in Its Voluntary Phase?
As of today, XBRL is not mandated in Malaysia. However, businesses that have adopted this robust new technology have benefited immensely, be it in terms of data analysis, transparency, increased efficiency, or error-free filing. XBRL, not only helps in reporting financial data but also has a good standing in the market. Any data that are reported in this format is considered to be accurate and trustworthy. This means with XBRL; you can drastically enhance transparency, gravitas, and decision-making. Considering all the benefits, it wouldn’t be erroneous to say that XBRL is being accepted as the mainstay approach to financial reporting.
If you get familiarized with this format of reporting early on, you can leverage it not only for error-free reporting but also gain insights into your business’s financial data.
XBRL – The New Future of Financial Reporting in Malaysia
There are over 1.2 million companies in Malaysia, and every one of them is required to file financial statements, except the exempt ones.
This enhances the need for voluntary adoption of XBRL in Malaysia since it allows easy, error-free, and transparent reporting. It will be a major step forward, especially in the private sector, where the trust factor regarding information being published is not doing so great.
It’s Here to Stay
Once your team is equipped with the best XBRL solution and experts, error-free reporting is just a few clicks away. And, with an XBRL specialist like DataTracks by your side, you don’t have to worry about hiring or training in-house experts. Leverage the 15+ years of extensive experience boasted by DataTracks in providing the right XBRL solutions. Having prepared over 185,000 compliance reports globally, DataTracks is the ideal partner for XBRL conversion.
Call @+60-392-126-125 today and gain access to a team of dedicated and highly trained financial experts at DataTracks, specialised in SSM & XBRL taxonomy.