Adoption of XBRL for finance professionals in the Aviation Industry in Malaysia
XBRL is an emerging innovation in Malaysia that has the potential of playing a pivotal role in the production, consumption, and exchange of financial information. However, most industries are still on the fence about adopting XBRL; aviation is no exception.
Since the adoption of XBRL is not well understood by most industries, here’s a standardized approach to the implementation of XBRL.
Implementation & Application Plan for XBRL
Step 1: Compiling and Entry of Financial Data
Because of the complex nature of this reporting language, there are different methods of storing data, including the ERP system, excel, and of course, manual entry and tagging. The data in the Corporate Information Systems like the ERP can be automatically converted into the audit report filing module. At the same time, some business departments that have no ERP system rely on Excel or manual data entry.
Step 2: Parsing Data and Generating XBRL Data
After completing the filing module comes the process of analyzing and generating XBRL data post which the consolidated financial statements are prepared. The best part? It doesn’t require much human intervention as the program can automatically detect manual data and summarize it based on the XBRL taxonomy and the SSM guidelines.
Step 3: Disclosure of Non-financial Information
Finally, the XBRL instance documents can be generated based on the consolidated financial statements. And not just that, the non-financial information like the top five suppliers in the accounts payable can also be generated based on the XBRL extended taxonomy.
Achievements Documented So Far in the Aviation Industry
- Implementation of the Unification of Data Interface
When all the data is compiled, stored, and shared in the same XBRL format, it becomes a lot simpler for users to analyze and compare data accurately. For instance, potential investors can easily interpret financial data from different aviation companies to make better-informed investment decisions.
- Generation of Corresponding Instance Documents
XBRL provides a simplified and unified platform for both aviation branch and subsidiary companies to generate corresponding instance documents. And not just that, it also summarizes the data submitted by the branch companies or the subsidiary companies to facilitate the preparation of consolidated financial statements, in which every data change is recorded automatically.
XBRL – Transforming and Streamlining the Malaysian Financial Reporting Landscape
Simply put, the adoption of XBRL in the aviation industry can facilitate the informationization process of the industry. Moreover, since XBRL is technology-based, its widespread application can significantly streamline the financial reporting process throughout the Malaysian Landscape. And the benefits of XBRL in the aviation industry don’t end here; XBRL also ensures that the data format is unified all along the aviation industry, making storing, retrieving, and sharing data extremely efficient.
With a dependable partner like DataTracks, you can take the first step towards adopting this reporting language and streamline your financial reporting once and for all. Having delivered over 200,000 reports to 19,900 clients worldwide in 16+ years, DataTracks has created a niche in XBRL reporting.