WHAT IS XBRL?
Since 1 November 2007, some companies had to file full sets of their financial statements to ACRA in XBRL format. The path of filing was done via the FS Manager. However, with effect from 3 March 2014, these statements have been diverted for filing at ACRA’s BizFinx system at their new BizFinx Portal.
What is XBRL?
XBRL (eXtensible Business Reporting Language), according to Wikipedia, “is a freely available and global standard for exchanging business information. XBRL allows the expression of semantic meaning commonly required in business reporting”.
In other words, XBRL is a way of communicating and exchanging business financial information digitally between various business systems. ACRA uses this system to collect financial statements from Singapore incorporated companies. The reason for the change from PDF formats is to improve efficiency, transparency in providence of financial information.
What is an XBRL financial statement?
An XBRL financial statement is a one that is formatted digitally through the XBRL reporting system in which case is ACRA’s BizFinx Portal for Singapore incorporated companies. It replaces the previous method of filing financial statements in PDF formats.
Disclosure of complete set of financial statements should contain the following:
- Directors’ report
- Statement by directors
- Independent auditors’ report (if audited)
- Statement of financial position
- Statement of profit or loss and other comprehensive income
- Statement of changes in equity
- Statement of cash flows
- Notes, comprising of a summary of accounting policies and other explanatory information
Company directors are responsible for filing financial statements in XBRL formats to ACRA. However, taking time away from core business activities to ensure accuracy of accounting information can be complex and time consuming. It is advisable to leave such tasks to professional corporate service providers such as CorpSec.