XBRL Filing in Singapore (2024): The Ultimate Guide
In Singapore, the Accounting and Corporate Regulatory Authority (ACRA) mandates the use of XBRL filing for certain types of companies. This guide serves as a comprehensive resource for understanding XBRL filing requirements in Singapore and provides an overview of the steps to file financial statements in XBRL format. Let’s get started!
What Is XBRL Filing in Singapore?
XBRL filing means that the Financial Statements (FS) of the company, fully or partially, will be converted to XBRL format and uploaded to ACRA during yearly the filing of the Annual Return (AR). XBRL – eXtensible Business Reporting Language – is an XML-based language used for standardizing the way financial and business information is reported and shared. It simplifies data analysis and enables efficient communication between businesses, regulatory authorities, and other stakeholders. Additionally, XBRL organizes financial data into tagged elements, making it easier to analyze and compare information.
Benefits of Filing in XBRL Format
XBRL offers numerous benefits for companies in Singapore. Let’s take a look at the key ones.
Accurate and Reliable Reporting
It streamlines the process of compiling financial statements in compliance with accounting standards. The use of standardized tags ensures accuracy and consistency in reporting, reducing the risk of errors.
Efficient Structure
XBRL allows for easier data analysis and data mining. By organizing financial information into a structured format, it becomes easier to extract insights and identify trends. This benefits financial analysts, regulators, and investors who rely on accurate and timely information for decision-making.
Improvement in Business Analysis
XBRL improves transparency and accountability by providing a standardized format for financial reporting, which means that it enhances the accessibility of financial information and promotes better understanding and comparability among stakeholders.
XBRL Filing Requirements in Singapore
Before filing XBRL, it’s important to know if the company is required to do so in the first place and understand what standards it has to adhere to for a successful process.
Which Companies Need to File in XBRL?
In Singapore, all limited and unlimited companies, except for exempted entities (Exempt Private Limited Companies), are required to file their financial statements in XBRL format. This includes public and private companies, both limited by shares and limited by guarantee. It is worth mentioning that even small companies that have a corporate entity among their shareholders are required to file financial statements in XBRL format during the AR filing.
Other types of exempted entities, besides exempt private limited companies, include commercial/merchant banks, finance companies regulated by the Monetary Authority of Singapore (MAS), registered insurers, and foreign companies and their branches. These entities are allowed to file their financial statements in PDF format instead of XBRL.
Revised XBRL Filing Requirements
Over the last decade, ACRA has revised the XBRL filing requirements to improve the quality of financial statements. As of December 2013, the option of filing in partial XBRL format is no longer available. Companies must now submit their financial statements in either full XBRL format or financial statements highlights in XBRL format (FSH) as a way of enhancing the accuracy and reliability of financial reporting.
Filing Financial Statements in XBRL
The XBRL filing process can often be complex to grasp, but understanding the elements it entails and an overview of the steps to take is a great starting point.
XBRL Format Templates
When filing financial statements in XBRL format, companies in Singapore have several available templates, each of which varies based on the complexity of the financial statements and the level of detail required.
As the name implies, the full XBRL template is the most comprehensive, including all elements from the financial statements and accompanying notes. In other words, it provides a complete view of a company’s financial position and performance.
The simplified XBRL template is suitable for companies with less complex financials. It includes essential elements from the financial statements, meaning that it shows a condensed view of the company’s financial position.
For companies in the banking and insurance sectors, there are specific templates for filing financial statement highlights (FSH) in XBRL format. These templates focus on key account details and provide a summary of the financial statements.
How to File Financial Statements in XBRL
To file financial statements in XBRL format, companies must follow these steps:
- Prepare their financial statements
- Convert the relevant part of the financial statement into the XBRL and validate it using the ACRA-provided validation tool.
- Upload the XBRL financial statements to ACRA’s BizFile portal.
- Submit the annual return filing. XBRL financial statements will be fetched from the system and linked to the AR filing.
It is essential to ensure the accuracy and compliance of the XBRL financial statements before submission. Errors or discrepancies can lead to delays in submission and its incompleteness, which may cause late filing fees.
Reach Out to Us Today
Because the XBRL filing procedure is quite complex and the necessary tools are not included in the standard accounting software packages, many small companies outsource their XBRL filings. Outsourcing XBRL filing to our experts at Intracorp can simplify the process and ensure compliance with ACRA’s regulations. Our team is here to help your company succeed. Feel free to reach out to us with any questions!
