Understand the Different XBRL Types – Simplified, Full, and Statement Highlights XBRL
Under the Companies Act, all Singapore incorporated companies must file their financial statements with Accounting and Corporate Regulatory Authority (ACRA), except for companies exempted from doing so. The companies that are not required to file their FS in XBRL format with ACRA include sole proprietorships, partnerships, limited liability partnerships, and limited partnerships.
The different XBRL filing requirements of financial statements vary depending on the size of the firm and its operations. Even though every company needs to file in the XBRL format, some need to file a complete set of FS whereas others are only required to file key financial data with a signed copy of complete FS in PDF.
Which category does your company fall under? What set of XBRL financial statements does your company need to file with ACRA? Read on to find out.
Understand the Different XBRL Types – Simplified, Full, and Statement Highlights XBRL
Who Needs to Prepare Simplified XBRL?
Small and non-publicly accountable companies are given the advantage of filing their FS in a simplified XBRL format and a PDF copy of the FS authorized by its directors. But what is simplified XBRL? It has about 120 data elements and captures the complete information about the financial performance and position of the company.
And what are small companies? A smaller company is when the revenue and total assets in the financial statements for the current year do not exceed S$500,000, respectively.
Who Needs to Prepare Full XBRL?
All companies other than small and non-publicly accountable must file their FS in a full XBRL format. The number of data elements in full XBRL has been reduced by 50% to about 210 elements. However, it is still more as compared to simplified XBRL. Why? Because it captures the complete company information in primary statements and selected notes to financial statements.
Who Needs to Prepare Financial Statements Highlights (FSH)?
As per ACRA’s revised guidelines, XBRL FSH (General) is no longer available under XBRL filing requirements mandated from 1 May 2021. XBRL FSH’s banks and insurance templates have around 80 data elements each.
Companies that need to file financial statements highlights in the XBRL format together with PDF copy of authorized financial statements include:-
- Commercial Banks (full banks, wholesale banks, offshore banks)
- Merchant Banks
- Finance Companies listed under Finance Companies Act
- Licensed Insurance Companies regulated by MAS (Monetary Authority of Singapore)
There are two types of financial statements that can be filed in the XBRL formats mentioned above, let’s try and understand these:-
Standalone and Consolidated Financial Statements
Standalone financial statements reflect the financial position of single entity. They are usually prepared by companies with revenue and total assets of not more than S$500,000 respectively in the current financial year.
On the other hand, consolidated financial statements are prepared by companies that have other legal subsidiaries. In these FS, the financial position of all the subsidiaries is taken into account. The primary purpose of preparing consolidated financial statements is to provide an accurate and fair picture of the company’s overall financial performance as well as to ensure compliance with internationally accepted accounting standards. To know more about the companies that need to prepare consolidated FS, read here.
Seek Professional Guidance to Meet ACRA’s XBRL Filing Requirements
Understanding and preparing your financial statements in compliance with the ACRA filing requirements can seem intimidating and tedious.
However, with a trusted XBRL partner like DataTracks by your side, you can leave your filing worries at bay. An experience of 16+ years and 200,000 reports has helped DataTracks gain prowess in converting financial statements into XBRL format to comply with each and every ACRA filing requirement as well as the Singapore taxonomy.
To know more about their services, speak to a DataTracks expert at 65-31-583-654 or email @ enquiry@datatracks.com.sg.