Do I need XBRL filing?

XBRL is an abbreviation of Extensible Business Reporting Language. It is widely used for presenting data which ensures hassle-free analysis, thereby bringing down costs, time and effort of businesses. It ensures paperless reporting and is therefore gaining widespread acceptance across different parts of the world. Here are some of the major reasons why XBRL filing is essential for businesses.

Presence of multi-lingual support

XBRL enables concept definitions to be compiled in numerous languages. The translations of definitions can be done by third parties. Therefore a report can be shared in different languages effortlessly. Businesses make large-scale use of this feature since it ensures automatic opening of reports to various communities.

ACRA XBRL Preparation can be customized

Flexibility of XBRL

One of the major advantages of XBRL (eXtensible Business Reporting Language) is its remarkable flexibility. XBRL can adapt to specific reporting requirements, allowing any type of unstructured data acquired from multiple formats and sources to be organized efficiently. This adaptability makes it an invaluable tool for various industries and regulatory environments.

Data consumption and analysis

XBRL enables electronic data acquisition, automating the handling process and significantly reducing the time needed for data organization and re-entry. The software can immediately verify data, detect errors, and address any issues promptly. This not only improves data accuracy but also enhances the efficiency of data analysis and processing. For example, a study by the Journal of Information Systems highlighted that XBRL adoption led to a 30% reduction in the time spent on data entry and verification for companies.

Users benefit from XBRL by being able to focus on higher-level tasks such as analysis, reporting, review, and decision-making. This results in significant time savings and improved data quality, which in turn enhances investment analysis, data selection, and comparison. According to a survey by the Financial Executives Research Foundation, 72% of financial professionals reported that XBRL improved their data analysis capabilities.

For lenders, XBRL helps reduce costs and speeds up financial transactions with borrowers. Government departments and regulators can collect, verify, and access data seamlessly, overcoming past inefficiencies. 

Precision in data collection and reporting

XBRL allows businesses to automate their data collection processes. Data from different departments using various accounting systems can be consolidated affordably once the sources are standardized to XBRL. After data is collected, various types of reports can be generated effortlessly, leveraging subsets of the data as needed.

A study by Deloitte found that companies using XBRL for internal reporting saw a 40% reduction in manual data handling and a 20% increase in reporting accuracy.

XBRL provides clear definitions

XBRL enables the creation of authoritative definitions known as taxonomies, which captures the meaning of all terms which are included in a business report and the link between them. These taxonomies are created by government agencies, regulators, accounting standard setters etc. to clearly explain the data which has to be reported. XBRL doesn’t restrict the exact kind of information which is explained.

XBRL is all-inclusive

One of the major plus points of XBRL filing is that it can accommodate numerous domains for business reporting. Apart from XBRL financial reporting, it can also be used for performance and operation reporting in a number of cases. Other domains which are covered by XBRL include transaction-based reporting, sustainability reporting, and internal reporting. This is one of the major reasons and regulatory agencies have started using XBRL.

According to XBRL International, over 150 regulators in more than 60 countries have implemented XBRL-based reporting, covering millions of companies worldwide. This widespread adoption underscores XBRL’s role as a comprehensive solution for diverse reporting needs.

Adoption of XBRL in Singapore

Singapore has been at the forefront of adopting XBRL (eXtensible Business Reporting Language) for regulatory and business reporting. The Accounting and Corporate Regulatory Authority (ACRA) of Singapore mandated the use of XBRL for filing financial statements as part of its efforts to streamline regulatory processes and enhance the quality of financial information.

Learn More About ACRA XBRL Filings in Singapore 

Singapore’s adoption of XBRL has significantly improved the financial reporting landscape, offering numerous benefits to companies, regulators, and stakeholders. By enhancing data quality, regulatory efficiency, and transparency, XBRL supports the robustness and integrity of Singapore’s financial system. As a global leader in regulatory compliance, DataTracks plays a crucial role in helping companies in Singapore navigate the complexities of XBRL reporting, ensuring compliance and accuracy in their financial statements.

Frequently Asked Questions on XBRL Singapore

What is XBRL Filing?

XBRL Filing refers to the process of submitting financial statements and other business reports in the eXtensible Business Reporting Language (XBRL) format. XBRL is a globally recognized standard for electronic data reporting that enhances the accuracy, reliability, and usability of financial information. It allows for the automatic exchange and reliable extraction of financial data across various software and platforms, facilitating better analysis and decision-making.

Why is XBRL Filing Important?

XBRL filing is important because it standardizes financial reporting, making it easier for regulatory bodies, investors, and other stakeholders to access, compare, and analyze financial data. This standardization improves transparency, reduces the risk of errors, and increases the efficiency of data handling and regulatory compliance processes.

How to Do XBRL Filing?

1. Prepare Financial Statements:
   • Ensure that your financial statements are complete and accurate. Gather all necessary financial data and documents required for reporting.
2. Convert to XBRL Format:
   • Use an XBRL conversion tool or software to convert your financial statements into the XBRL format. There are various XBRL service providers, including DataTracks, that offer solutions to streamline this process.
3. Validate the XBRL File:
   • Validate the converted XBRL file to ensure it meets the required standards and taxonomy definitions. This step is crucial to avoid errors and ensure compliance with regulatory requirements.
4. Submit the XBRL File:
   • Submit the validated XBRL file to the relevant regulatory authority. In Singapore, companies submit their XBRL filings to the Accounting and Corporate Regulatory Authority (ACRA) through the BizFile+ portal.
5. Confirmation and Follow-Up:
   • After submission, you will receive a confirmation of receipt from ACRA. Ensure to follow up on any feedback or additional requirements from ACRA.

Who Needs to File XBRL in Singapore?

All Singapore-incorporated companies, unless exempted, must file their financial statements in XBRL format. Exemptions apply to certain types of companies such as those limited by guarantee, and some foreign companies.

What are the Filing Formats for XBRL in Singapore?

• Full XBRL: A full set of financial statements in XBRL format.
• XBRL FSH (General): A simplified filing option for companies with straightforward financial statements.
• XBRL FSH (Banks): A specific filing option for banks.