Explore the fundamental concepts of XBRL and its significance within Singapore’s business landscape. This comprehensive guide offers insights into XBRL’s core principles and its implications for businesses operating under ACRA’s regulatory framework. By providing clarity on filing requirements and simplifying the XBRL process, this resource equips enterprises with the knowledge needed to ensure seamless compliance and efficient financial reporting practices.
- What is XBRL?
- What are the XBRL filing requirements?
- How to prepare and file the XBRL financial statements?
- How to prepare your financial statements in XBRL format with BizFinx?
- Uploading your company’s XBRL Financial Statements to the BizFinx Portal
- How to file the XBRL Financial Statements through the Annual Return form of BizFile?
What is XBRL?
XBRL means eXtensible Business Reporting Language and is a world-wide publicly available international standards framework. This standard is used for the exchange of digital business and financial information.
This business reporting standard is managed by a nonprofit consortium organization gathering more than 50 countries and 600 public institutions.
In Singapore, ACRA (Accounting and Corporate Regulatory Authority) chose to implement the XBRL filing requirements since 2007. Until 2020, testing and feedbacks led to the improvement of the XBRL implementation. ACRA released the latest version of standards used for XBRL in May 1st 2021.
XBRL provides several benefits to business reporting and analysis. Indeed, it is considered cost-effective, timesaving, more accurate, and reliable workflow for stakeholders involved in supplying or using financial information.
What are the XBRL filing requirements?
By default, all the incorporated companies in Singapore are required to file their financial statements in XBRL format with ACRA. Please note that this also includes dormant companies. However, some specific types of companies are exempted from the XBRL filing requirement:
- Companies limited by guarantee
- Foreign companies and local branches
- Solvent EPCs (Exempt private companies)
- Companies lawfully preparing financial statements using some other accounting standards than SFRS (Singapore Financial Reporting Standards) or IFRS (International Financial Reporting Standards).
The above-listed companies are required to file their financial statements in a PDF format. You can find out more on ACRA’s website.
How to prepare and file the XBRL financial statements?
There are 3 ways to prepare and use XBRL for the financial statements:
1. Using BizFinx.
Through BizFix, it is a preparation tool for XBRL, the software is available on ACRA’s website. The financial statements can be submitted through the BizFile+ portal. The process is detailed below.
2. Using an XBRL-ready accounting software.
Some accounting software already integrate the XBRL format. The financial statements can then be submitted with Simplified XBRL Financial Statement function to ACRA.
3. Going through an accounting service provider.
As part of our accounting and company secretary services we offer to prepare your financial statements in the XBRL format and file them for your company with ACRA.
How to prepare your financial statements in XBRL format with BizFinx?
Step 1: Download the BizFinx software on ACRA’s website.
Step 2: Assemble the financial statements after the presentation during the Annual General Meeting (AGM FS). The financial statements include the comprehensive income/profit-and-loss, the balance sheet, cash flow statement, and changes in equity. In BizFinx, the financial statements can be uploaded through “source document”. Microsoft Word or Excel format are accepted.
Step 3: Each element of the financial statements has to be tagged within the ACRA Taxonomy. The tabs are to be filled out within the template. If the financial statements do not provide required information, then data fields should remain blank.
Step 4: Validate the offline Financial Statements in XBRL. If there are errors, they will be highlighted for review and correction.
Step 5: Save the XBRL Financial Statements directly from the BizFinx software for submission.
Uploading your company’s XBRL Financial Statements to the BizFinx Portal
From the BizFinx software, you can click on the “Acknowledge and Upload” button to upload the XBRL Financial Statements. If document is properly uploaded, the following message should appear: “Your XBRL file has been successfully uploaded”.
Please note that the XBRL Financial Statements are available on the BizFinx platform for 14 days only. If an error has been spotted from the previous XBRL filings, you will have to:
- file a Notice of Error (NOE) with ACRA to correct the errors, or
- file a Court Order to delete the filed Annual Return. You will then be able to re-file a new Annual Return.
More information on these procedures can be found on the following ACRA resource.
How to file the XBRL Financial Statements through the Annual Return form of BizFile?
Filing the Annual Return with the proper XBRL Financial Statements is straight forward:
- First, log into Bizfile+
- Proceed as per the detailed steps to file the Financial Statements in XBRL format.
Please note that if your company’s Financial Year End is before August 31st 2018 you will have to follow these steps instead.
Concerned about XBRL? We can handle it entirely!
If you are not sure or have doubts regarding the whole procedure, we can assist you.
Not only does MyBusiness in Asia prepare the accounting and financial statements of your company, but our accountants ensure that the documents are prepared using the latest XBRL format when filing it with ACRA and Singaporean authorities.
