In Singapore, companies are required to file their financial statements in XBRL (eXtensible Business Reporting Language) format with the Accounting and Corporate Regulatory Authority (ACRA). This standardised language streamlines financial reporting and analysis, benefiting both companies and regulators. In this blog post, we will explore XBRL filing, its requirements, and its benefits for companies in Singapore.
XBRL is a standardised language used for exchanging financial data between companies and regulatory authorities. It simplifies the process of financial reporting and analysis, providing a common platform for data exchange. Since November 1, 2007, all incorporated companies in Singapore, with few exceptions, must file their financial statements in XBRL format with ACRA. This requirement ensures consistent and accessible financial data for regulators, investors, and stakeholders.
All incorporated businesses in Singapore, except for specific exemptions, are required to file their financial statements in XBRL format with ACRA. Non-compliance with XBRL filing requirements may result in penalties, including late filing fees and disqualification of directors for repeated offences.
Exemptions exist for certain types of businesses, such as dormant companies and insolvent Exempt Private Companies (EPCs). To qualify for exemptions, companies must meet specific criteria outlined in the Companies Act. It’s essential for directors to confirm their company’s eligibility for exemptions to avoid penalties.
ACRA mandates specific financial statements to be filed in XBRL format, including the balance sheet, income statement, cash flow statement, and statement of changes in equity. These financial statement highlights provide a comprehensive overview of a company’s financial performance and position, making them easily accessible and comparable for stakeholders.
The XBRL filing deadline in Singapore varies based on the type of company. Listed companies have a five-month deadline, while non-listed companies have a seven-month deadline. Failure to meet these deadlines can result in penalties.
Companies can apply for an extension to the XBRL filing deadline through ACRA’s online portal, but it’s essential to plan accordingly to avoid potential penalties.
ACRA provides four distinct XBRL filing formats to accommodate different companies and industries:
Guide to Filing Financial Statements in XBRL Format in Singapore
Filing financial statements in XBRL format in Singapore involves a streamlined process comprising six essential steps:
Step 1: Obtain the BizFinx Preparation Tool
Begin by downloading the BizFinx preparation tool from the ACRA website at no cost.
Step 2: Prepare Financial Statements
Present your company’s financial statements, as discussed during the annual general meeting, in either Microsoft Word or Microsoft Excel formats.
Step 3: Data Entry with XBRL Tags
Enter all the relevant financial information into the provided template, ensuring the inclusion of appropriate XBRL tags. If specific data wasn’t addressed during the annual general meeting, simply leave those fields empty.
Step 4: Validation and Error Correction
Thoroughly review your XBRL financial statements for any highlighted errors or discrepancies. Correct any identified mistakes as necessary. Then, validate your XBRL financial statements offline.
Step 5: Upload and Verification
Utilize the BizFinx platform to upload and verify your XBRL financial statements. These statements remain valid for a duration of up to 14 days. To proceed, click the “Acknowledge and Upload” button, and upon successful upload, you’ll receive a confirmation message stating, “Your XBRL file has been successfully uploaded.” Should any uploading errors occur, rest assured that you can delete and re-upload the correct files.
Step 6: Submission via BizFile
Lastly, access BizFile and submit the annual return, accompanied by the uploaded XBRL financial statements. By following these six steps diligently, your company can efficiently file financial statements in XBRL format in compliance with Singaporean regulations.
When filing financial statements in XBRL format, it’s crucial to steer clear of the following common errors to ensure a smooth and timely submission:
1. Mismatch Between AGM Financial Statements and XBRL Data:
Verify that the content within the “Disclosure of complete set of financial statements” text block precisely matches your AGM financial statements.
2. Data Discrepancies Between XBRL and AGM Financial Statements:
Ensure that the data in your XBRL financial statements aligns perfectly with the content of your AGM financial statements. Common discrepancies often arise due to factors like:
3. Incomplete XBRL Data:
Ensure that all templates listed in the minimum requirement checklist are completed. Leave fields blank only if they are not applicable to your company. Frequently overlooked fields include:
4. Incorrect Mapping to XBRL Financial Statements:
Apply a “best-fit” approach when matching items to the XBRL taxonomy. Reserve the “others” category for unique items that cannot be mapped to any concept in the taxonomy.
XBRL filing is a critical requirement for companies in Singapore, enhancing transparency and streamlining financial reporting. Understanding the filing process and requirements is essential to ensure compliance and avoid penalties.
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