XBRL and Corporate Governance: Enhancing Accountability in Singapore
Businesses use technological tools and frameworks to switch from manual procedures to automation to reveal business-related data and information. Thanks to digital tools like eXtensible Business Reporting Language (XBRL), companies can report high-quality information in a machine-readable format. This simplifies using data analytics to acquire deeper insights for better decision-making.
Corporate governance is the act of directing and managing a company’s operations in a way that maximises long-term shareholder value while also considering other stakeholders’ interests. The Code of Corporate Governance and Practise Guidance make up the Singapore corporate governance regulatory framework, which comprises of:
- The Securities and Futures Act
- The Listing Manual
- Statutory laws, as well as best practice suggestions
Corporate governance and XBRL are two distinct but connected ideas that can complement one another to increase organisational responsibility, notably in financial reporting and digital transparency.
ACRA XBRL supports, enhances and improves accountability in the following ways:
- Standardised and Accurate Reporting – The standardised language of XBRL is used to transmit commercial and financial data electronically. It helps businesses to tag their financial data in an organised way. It also facilitates data comparison and analysis across many enterprises and periods. Organisations can lower the risk of mistakes and discrepancies in their financial reports by utilising XBRL. Since XBRL data is structured, information is accurately represented and easily checked.
- Accountability and Decision-Making – The practices, procedures, and frameworks that direct an organisation’s decision-making and accountability mechanisms are collectively called corporate governance. Independent boards of directors are frequently a part of sound company governance and monitor management, guaranteeing moral conduct.
- Regulations and Compliance – Singapore’s business and financial institutions are subject to the nation’s financial rules and legislation. The use of XBRL for financial reporting is frequently mandated by this legislation, further boosting transparency and accountability. External auditors play a significant role in corporate governance by independently assessing a company’s financial statements to guarantee accuracy and conformity with relevant laws and standards.
- Attracting Investors – Organisations are committed to transparency and accountability when they adopt sound corporate governance procedures and use XBRL for financial reporting. This can increase confidence and trust among shareholders, investors, and other stakeholders.
By giving financial reporting a formal framework by developing systems for oversight and compliance, XBRL and corporate governance jointly increase accountability. When these components are integrated, organisations can better fulfil their commitments to stakeholders and the general public. This ultimately improves trust and accountability.
Why Choose DataTracks for XBRL Filing?
DataTracks is one of the most well-known and reliable service providers, specialising in regulatory compliance reporting. With more than 18+ years of experience in over 26 countries, we are the reason behind the satisfaction of 23,400 + clients and 348,000 reports.
Our solution is ready for the market and designed to meet ACRA’s XBRL requirements. We help many companies, auditing and secretarial organisations convert their financial statements into XBRL format to meet ACRA filing requirements. Additionally, DataTracks has successfully produced compliance reports for Singapore’s top businesses and accounting firms.
To simplify and streamline your reporting system by your country’s rules and regulations, contact us today. Call us on +65 31582850 or email us on enquiry@datatracks.com.sg