ACRA (Accounting and Corporate Regulatory Authority) has decreed that every Singapore company, unlimited and limited by shares, must take benefit of XBRL filing while filing their financial statements. It has already published revised XBRL filing requirements that came into effect from 3 March 2014. It has also provided BizFinX filing system and a preparation tool for the users. The tool is a free offline software application. The task is new, requiring the business to hire services of XBRL filing services in Singapore like SBS Consulting.
The introduction of this format means companies are no longer allowed to file their statements in Excel sheets, Word documents, and etc formats. The goal of implementing XBRL filing in Singapore is to improve financial analysis through the gathering of structured business data. The uniformly structured data is easy to transmit to and use at the destination computer system. It goes a long way in the aggregation and analysis of financial data on the national level.
What Are the Full XBRL Filing Requirements?
SBS Consulting provides its expertise and assists its clients in fulfilling the requirements of XBRL filing in Singapore. The service is really helpful to the Small and Medium Enterprises (SMEs) lacking in resources or technical knowledge. SBS even takes care of the XBRL filing of the bigger businesses and leaves them to take care of their core goals. The requirements are as follows:
A company must provide Directors’ statement or financial statements prepared by the independent auditors.
The company must provide statements giving its financial position, income, and cash flow.
The data in a company’s disclosure note must include its share capital, income and expenses, and expenditure on the employee benefits. The note must also give details about the company’s property and equipment, government grants, provisions and revenue, trade and other payable.
Why There is a Need of Uniform Data Format?
The importance of having a uniform financial reporting format can be seen from the way XBRL filing helps the accountants when there are mergers or acquisitions. Before the parties finalize or reject the deals, they need to access and study their respective financial worth.
If they are using different formats for their financial reporting, then the accountants have to study each and every entry in the statements of the other party. However, if they are using XBRL format, it helps in automation of the process through the use of software programs. The uniformity in format simplifies the process drastically.
Benefits of XBRL Filing in Singapore
Taking care of the (http://www.sbsgroup.com.sg/singapore-xbrl-filing-requirements-with-acra/) XBRL filing requirements in Singapore is a must for bringing transparency in the financial data communicated by the businesses to the authorities. It fulfills the business reporting goals and objectives and, also makes it easy for the investors, financial analysts, and regulators to access and study the data to base their decisions on.
Information Sharing: The XBRL filing Singapore is meant for sharing data between business entities and regulatory authorities. The format promotes the reuse of the financial data without further processing. SBS Consulting stands out because of its seamless XBRL filing services.
Data Transparency: The investors, stock traders, and brokers need reliable data to make their investment decisions. The government regulators, stock exchanges, financial and economic analysts need accurate and reliable financial information.
Fund Raising: Filing their statements in XBRL format assists businesses in acquiring capital from the market because their books are open for every to see and draw conclusions from.
Financial Health of the Businesses: The data is also useful to the financial analysts in predicting the financial health of the businesses and in advising the investors. It also assists the businesses with filing their tax returns and conveying information like production output, inventory etc.
Singapore authorities like ACRA, do their best to raise the awareness of the XBRL filing requirements in Singapore. Time and again they conduct free BizFinX Training Seminars to educate the business owners and managers. These programs typically cover the Singapore XBRL filing requirements, details about BizFinX portal, use of BizFinX preparation tool and Annual Return form. However, if you are a businessperson short of time and who believe in letting the experts handle the financial data, outsource XBRL filing to SBS Consulting.