Why SSM has introduced MBRS?
For over a decade now, one of Suruhanjaya Syarikat Malaysia or SSM’s main goals has been XBRL adoption. This drive for adoption dates to 2010 in accordance with the 2010-2014 Second Strategic Direction Plan by SSM.
The primary objective behind SSM’s XBRL drive is to ensure financial reporting surpasses paper-based submissions to maintain transparency and clarity of information being filled.
The Transformation from Paper-Based Reporting to Digital Reporting Through MBRS
Earlier, SSM used to comply with a paper-based reporting that was usually in the PDF format. But, with the advent of technology, SSM is trying to make the entire reporting process digital. Keeping this into consideration, the SSM has introduced the MBRS preparation tool for preparing and generating annual returns, financial statements & reports, as well as exemption applications. This primary purpose for the introduction of the MBRS tool is to make the reporting process digital & convenient.
Advantages of XBRL
It’s quite obvious that XBRL-powered MBRS simplifies the processing, transmission, communication, and use of financial information while adapting to the existing systems. However, there are more advantages to business than ever before.
Credit risk management: With XBRL, the faster performance of mechanical tasks is now possible. Due to this gain in productivity, an organization can attain a competitive advantage by performing thorough checks. The use of XBRL in credit risk calculation algorithms, financial analyses by rating companies certainly improves the effectiveness of credit risk analysis.
Business Intelligence: Most of the BI dashboards that improve decision-making for stakeholders adopt the XBRL format. By generating XBRL reports and updating them, the BI tools will now generate updated information and curated data which facilitates active monitoring, analysis, and forecasting.
Transaction cost analysis: Institutions, such as banks, data providers, and statistical organizations, who are required to process a massive amount of data on an everyday basis, are continually analysing their costs and looking for ways to reduce them. Banks and financial institutions, for example, have to take into account several mechanisms while conducting transactions, be it online or offline. An initiative, known as Straight-Through Processing (STP) is used to reduce the complexity of these processes. All stakeholders are trying to incorporate STP into their systems, which can be extremely beneficial for the interests of XBRL.
DataTracks, a member of the XBRL consortium, has assisted numerous organizations all across the globe, especially in Malaysia, to reap these benefits. By leveraging 15+ years of XBRL expertise in providing the right solutions & consultation, DataTracks is your perfect XBRL partner. Please reach out to our team at firstname.lastname@example.org.
For an in-depth understanding of SSM’s MBRS and how it is going to affect your financial reporting process, please click on the link:-Decoding the Malaysian Business Reporting System by SSM.