Understanding XBRL Filing Requirements for Pte Ltd Companies in Singapore

For Pte Ltd companies in Singapore, adhering to XBRL (eXtensible Business Reporting Language) filing requirements is an essential part of financial compliance. Although it may seem complex, this standardised format ensures efficient and transparent submission of financial statements. By using XBRL, companies in Singapore can streamline their reporting processes and enhance data accuracy.

When is XBRL Filing Required?

1. Non-Exempt Private Companies (Non-EPCs)

• Who Needs to File? Companies in Singapore with corporate shareholders.
• Requirement: Must file financial statements in XBRL format.

Example: Consider XYZ Pte Ltd, a company in Singapore with corporate shareholders. XYZ Pte Ltd is required to file its financial statements in XBRL format to comply with the regulations.

2. Insolvent Companies

• Definition: A company unable to meet its financial obligations as they come due.
• Requirement: Must file financial statements in XBRL format.

Example: If XYZ Pte Ltd is struggling to meet its financial obligations and is deemed insolvent, it must file its financial statements in XBRL format to adhere to the regulations.

3. Exempt Private Companies (EPCs)

• Definition: Private companies with fewer than 20 individual shareholders and no corporate shareholders.
• Filing Requirement: Generally exempt from filing financial statements with ACRA but must approve their Unaudited Financial Statements (UFS) during the Annual General Meeting (AGM).

Example: If XYZ Pte Ltd is an Exempt Private Company with fewer than 20 individual shareholders and no corporate shareholders, it is exempt from filing financial statements with ACRA. However, it still needs to approve its Unaudited Financial Statements during its AGM.

Assessing Solvency for XBRL Filing

1. Negative Equity vs. Insolvency

• Negative Equity: Not an automatic indicator of insolvency.
• Solvency Determination: Depends on the company’s ability to meet financial obligations.

Example: Consider ABC Pte Ltd, a company with negative equity. Even with negative equity, ABC Pte Ltd is not automatically deemed insolvent if it can still meet its financial obligations.

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2. Types of Liabilities

• Liabilities to Directors: If most liabilities are owed to directors, the company may still be solvent.
• Liabilities to External Creditors: If debts are owed to external creditors, the company might be considered insolvent and required to file in XBRL format.

Example: If ABC Pte Ltd’s liabilities are primarily owed to its directors, it may be considered solvent and may not need to file in XBRL. However, if the company owes significant amounts to external creditors, it could be deemed insolvent and required to file its financial statements in XBRL format.

Simplified vs. Full XBRL

1. Full XBRL

• Requirement: For larger companies in Singapore with complex financial structures.
• Features: Includes detailed data elements and extensive reporting.

Example: DEF Pte Ltd, a large company with a complex financial structure, must use the Full XBRL format, which includes detailed reporting elements.

2. Simplified XBRL

• Requirement: For smaller companies in Singapore with simpler financial operations.
• Features: Requires fewer data elements, making reporting easier.

Example: GHI Pte Ltd, a smaller company with simpler financial operations, can use the Simplified XBRL format, which requires less detailed reporting.

When Should You File XBRL?

1. AGM Timing

• Submission Window: Companies must hold their AGM within 6 months after the financial year-end.

Example: If a company’s financial year ends on 31 December 2023, its AGM must be held by 30 June 2024, and the XBRL filing must be completed by 31 July 2024.

2. XBRL Filing Deadline

• Submission Window: Companies are required to file the Annual Return, along with the financial statements in XBRL format, within 7 months of their financial year-end.

Example: Consider JKL Pte Ltd, a company with a financial year ending on 31 December 2023. JKL Pte Ltd must hold its AGM by 30 June 2024 and complete its XBRL filing by 31 July 2024 to comply with regulatory deadlines.

Summary

Although XBRL filing may initially seem like an additional task for Pte Ltd companies in Singapore, it is vital for promoting transparency and accuracy in financial reporting. By complying with ACRA’s XBRL requirements, your company contributes to a more efficient and reliable business environment. Timely and correct XBRL filing helps avoid penalties and allows you to focus on growing your business with confidence.

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