XBRL – Filling the Gaps in Financial Reporting
With the extensive use of the digital space, Malaysian companies expect to benefit from their inevitable movement towards digital reporting. Transitioning from submitting AFS via print or on the counter to submitting them online, digital reports in XBRL format has become the future for Malaysian-based companies. SSM, the Companies Commission of Malaysia, in 2018, introduced its new online digital reporting and submission portal for XBRL financial reporting.
According to an Accountant Today article, the aim of launching MBRS was to add value to the financial reporting process by improving information exchange, accessibility, and the quality of preparing annual returns and financial statements.
XBRL does not change what is to be reported; it only changes how the data is reported. Due to the ease in financial reporting and submission of error-free reports, organisations and regulators are making every effort for a smooth XBRL transition. The objectives of implementing XBRL in Malaysia include:-
- To effectively communicate information between companies and other information users like regulators, investors, and auditors.
- To promote electronic business reporting via a standard digital format.
- To present both machine and human-readable financial data.
You may wonder how XBRL can benefit businesses in their financial reporting. Let’s find out.
Benefits Of XBRL Filing in Financial Reporting
- Streamlined Process for Reporting Financial Information
The preparation of financial reports can be an extremely daunting process, especially when you have a lot of edits and stringent deadlines. This is where XBRL reporting can come in handy. Changes made in one document can be reflected in other documents as well, making the process smooth and streamlined.
- Fewer Efforts and Better Data Analysis With XBRL
Users of XBRL can automate its handling and analysis, resulting in reduced time spent on manual entry of information. The human effort that is mostly spent on the manual compilation of data in paper-based financial reporting can now be used for higher review, analysis, and decision-making.
- XBRL Filing is Flexible
XBRL being flexible and extensible, can be adapted to various applications. Companies using the XBRL format can define new tags to extend current taxonomies or create their own taxonomies to cater to their specific requirements.
- XBRL Offers Transparency
XBRL reporting can benefit the organisation by improving its investor relations and access to capital markets. How? By increasing the transparency of financial information to the stakeholders, investors can easily compare details of the companies that provide their financial information in a standard reporting format. This helps investors make quick investment decisions.
- More Economical for Companies
Filing annual financial statements with SSM involves a lot of cost and hassle. However, XBRL filing, with its scalable and streamlined processes, reduces the total costs. In addition, you can ensure error-free reporting by outsourcing your financial reporting to a trusted XBRL service provider.
Make Your Way Towards Error-Free XBRL Filing TODAY!
Financial reporting can become a daunting process very quickly. Therefore, make your transition to XBRL TODAY to avoid any hassles. By partnering with DataTracks, you can ensure error-free preparation and submission of your AFS in the XBRL format. With an experience of 200,000+ compliance reports for 19,900+ clients globally, DataTracks can be your best pick for a smooth transition to XBRL.
To know more about the XBRL services offered by DataTracks, speak to an expert @ +60-392-126-125 or email at firstname.lastname@example.org.