XBRL for Digital Business Reporting
Technology and its advancements have revolutionised the process of financial reporting. Advanced digital reports have successfully replaced traditional paper-based business reports. Over the past several years, many digital formats for business reporting emerged. However, only eXtensible Business Reporting Language (XBRL) could make its place in the global market. XBRL for digital business reporting is still the most preferred format by the world’s leading regulators due to its various advantages, including greater accuracy and effectiveness.
What are the Advantages of XBRL?
XBRL offers several advantages to Malaysian companies for filing their annual financial statements, which include:-
- XBRL offers transparency in reporting to ensure easy accessibility to corporate information.
- The XBRL framework automates the data collection process, minimising manual intervention.
- It offers a rapid and accurate exchange of digital information between users.
- Using technologies such as XML Schema, XPath, XLink, and Namespace, XBRL defines the reporting terms used to represent the contents of financial performance, business reports, and compliance.
These are the reasons that over 100 regulators use XBRL in over 60 countries.
XBRL and Its Role for SSM
To ease the submission of XBRL reports, Suruhanjaya Syarikat Malaysia (SSM), the Malaysian regulator, introduced an XBRL-based submission platform, the Malaysian Business Reporting System (MBRS). In November 2018, SSM mandated the submission of annual financial statements and reports (FS), annual returns (AR), and annual exemption applications (EA) through MBRS.
How to Generate and Submit XBRL Reports Through MBRS?
MBRS involves three components for submitting XBRL reports with SSM. These components include:-
XBRL Taxonomy (SSMxT)
Filers need to be aware of the XBRL taxonomy for preparing XBRL reports. The XBRL taxonomy is based on the International Financial Reporting Standards (IFRS), 2017. The IFRS taxonomy has been customised to meet the requirements of:-
- The Malaysian Financial Reporting Standards (MFRS) for the public companies
- The Malaysian Private Entities Reporting Standards (MPERS) for private companies
MBRS Preparation Tool (mTool)
The mTool is an excel-based software that allows companies to prepare their XBRL reports. It is used to generate annual financial statements, annual returns, and exemption applications using SSM taxonomy. Therefore, preparers need to know the financial reporting standards and taxonomies available in XBRL to use the tool.
MBRS Portal (mPortal)
After generating a report via mTool, you must submit it on the MBRS portal or the mPortal. It is a submission portal that allows companies to submit their XBRL reports online with SSM. The portal helps the users with several activities, such as tracking the submission status, downloading required templates, using digital signatures, and employing payment facilities.
XBRL for digital business reporting has helped Malaysian companies with effortless preparation, exchange, and access to financial reports. Hiring an in-house team for XBRL preparation requires training to familiarise the team with XBRL taxonomy, MBRS preparation tool and portal. However, if you do not want to spend considerable time and money on training programmes, you can outsource your SSM requirements to a trusted vendor.
DataTracks has a team of XBRL specialists that ensures quality and reliability in every report. With an experience of 17+ years, 2,20,000+ reports, and 21,500+ clients, Datatracks can help you file error-free, compliant reports via MBRS. You can contact an XBRL expert at +60-392-126-125 or email @ firstname.lastname@example.org to know more about their services.