All non-exempt companies in Singapore are required to submit their financial statements with the XBRL software for XBRL Filing.
XBRL stands for Extensible Business Reporting Language.
It is a computer language that will help compile process and analyse information without having to use copy and paste manual methods.
Implementing the XBRL language and software can provide better information accuracy, increase transparency, and provide timely processing of financial data.
With the new system, much time and confusion can be taken out of the processing equation and will be replaced with the preciseness of machines.
The machine's computational power will be able to process information far quicker than the old manual way.
The process of implementing the new filing requirements of the XBRL system will be different. Instead of submitting your financial statements in a word or excel format, it will now need to be machine readable in XBRL format.
The company’s financial statement is exported into the XBRL file within the user’s software.
It will then be submitted to the Accounting and Corporate Regulatory Authority for data analysis.
When beginning the journey to transitioning over to the XBRL filing system, your company must know about the filing requirements. A new offline tool is being introduced under the name of BizFin.
BizFin will be used to prepare XBRL financial statements for your company. Any financial statements prepared by your business must now be implemented using the BizFin software.
There are requirements about the financial information that your company will need to submit. Statutory reports must be provided by a directors’ statement or be from independent auditors.
Primary financial statements have to consist of the company’s financial position, profit or loss statement, and a statement of cash flow.
Disclosure notes must include employee benefits and expenses, government grants, property and equipment, trade and other payables, share capital, income and expenses, provisions and revenue.
When considering meeting the filing requirements of the new XBRL system, you will want to ask yourself some questions to make sure your company is ready to meet the requirements.
The most important thing to consider is if your business is ready for the impact of changing to a new method of financial reporting. How will the new filing requirements affect your company?
It is also important to have specific individuals assigned to the transition of implementing the new system.
There will be huge initial efforts into getting your business switched over to the new system including troubleshooting issues that arise.
This can help eliminate confusion and errors while your company runs smoothly throughout the transition.
Choosing an accounting service professional firm that has experiences in usingin the BizFin software can save you time and money instead of preparing it yourself.
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