Common Mistakes to Avoid While Filing Financial Statements in XBRL for 2022

XBRL is a reporting language used across the globe, creating millions of XBRL documents every year. ACRA mandated filing financial statements in XBRL format for businesses in Singapore because of its significant benefits in business reporting and analysis. By understanding the common mistakes to avoid whiling in XBRL it will be a effective way for error-free XBRL submission with ACRA.

The various advantages of the XBRL format include:-

• It makes information readily available to all the stakeholders in a business
• It minimizes manual intervention in data entry
• It offers more reliable and accurate handling of data
• It improves analysis and decision-making

However, making errors while filing reports in XBRL format with ACRA can result in bad decisions and makes your company look less valuable than it is. Here are some most common mistakes to avoid in 2022 for prompt and seamless preparation and filing of AFS.

Errors in Filing XBRL Financial Statements

• AGM Financial Statements and Text Block Data in XBRL Format Do Not Match

The content of the text block that comes under “Disclosure of complete set of financial statements” should be identical and legible to the content of your AGM (Annual General Meeting) financial statements. To add the complete set of financial statements in the text block, open the text editor by double-clicking on the text block cell, then copy and paste the full set of financial information from the source document to the text block.

• Incomplete XBRL Data

While filing financial statements in XBRL format, you must ensure that all the templates are mentioned in the minimum requirement list. Only those fields that don’t apply to your business should be left blank. The most common errors in the incomplete data include the following fields:-

• • Share capital
  • Property, plant, and equipment
  • Employee benefits expense
  • Trade receivables
  • Other receivables
  • Name of parent entity or group

• Data in XBRL Financial Statements and AGM Financial Statements Do Not Match

In filing AFS in XBRL format, the XBRL data must match the AGM financial statements. Errors in unmatched data mainly arise from:-

• • Presentation format (type of income statement)
  • Level of rounding (thousands, millions, etc.)
  • Earnings per share (EPS) not offered in dollars per share
  • Currency indicators (SGD, USD, etc.)
  • Type of accounting standards used to prepare AFS (SFRS, SFRS for SE, etc.)
  • Incomplete net cash flows
  • Profit or loss from discontinued operations (in financial statement highlights)
  • Disclosing $0 in the prior year column while preparing consolidated financial statements for the first time, when previous year group level figures are not provided in AGM financial statements

• Incorrect Mapping to XBRL

Map data using the “best-fit” principle, the relevant taxonomy elements in the templates. Use “others” only to classify unique items which cannot be mapped in any other taxonomy element.

Make Your Way Towards Error-Free XBRL Financial Statements

Avoiding errors in financial reporting is a must to benefit your company. The best way to ensure error-free XBRL reports is to outsource your financial statements to a trusted XBRL partner. Enter DataTracks…

DataTracks, with their 16+ years experience and 19,900+ compliance reports, provide quality and reliability in your annual financial statements to be submitted with ACRA. To know more about their XBRL services, get in touch with an expert @+65-31-582-850 or email at enquiry@datatracks.com.sg.