A Comprehensive Guide to XBRL Filing: What You Should Know

What is XBRL Filing?

XBRL filing stands for eXtensible Business Reporting Language—a global framework of accounting standards for digital business reporting.

It was developed to help businesses share financial and business data with regulatory bodies or other stakeholders in a standardised, machine-readable format. Instead of using regular papers or PDFs, it uses tags to organise each piece of data. This makes it easier for computers to understand and compare information.

Simply put, XBRL filing is a special language that defines terms for reporting. Think of it like going from film to digital pictures or paper to digital maps. It keeps what we could do before but adds new possibilities because the information is clearly defined, works on any system, can be tested and is digital.

How XBRL Filing Works

To help you understand how XBRL filing works, let’s imagine a financial spreadsheet with numbers like revenues and expenses.

Think of each number on the table like a piece of a puzzle. On its own, it might not tell you much. But with XBRL, these numbers get a tag that gives them more information.

For example, if a company says it has $20,000 in cash, XBRL would include additional information like the units of measure, currency and time. This makes the details easier to comprehend and compare with companies side-by-side while giving useful insights for investors and financial analysts.

What Are The Benefits of Filing in XBRL Format?

Filing in XBRL format has several advantages, including:

Ensures Compliance and Accuracy in Financial Reporting

With XBRL filing, companies can efficiently put together financial statements that fully adhere to their country’s accounting standards. Thanks to its tagged data which clarifies meaning, it facilitates accurate and reliable interpretation for investors, analysts and regulators.

Moreover, XBRL helps businesses quickly retrieve information from big volumes of documents. It means they can spend more time making informed decisions instead of doing long and boring calculations.

This turns it into an essential tool for any organisation aiming to improve how they report their finances and keep up with legislative changes at the same time.

Helps With Business Analysis

Since XBRL provides many details in reports, it lets users closely analyse how well their business is doing in specific areas or metrics. This helps them adhere to the rules better, avoiding hefty fines and penalties for not following the regulations.

Leads to Cost Savings & Security in Financial Reports

Filing in XBRL format helps organisations cut costs by reducing the overall time spent manually entering or gathering data for reports. XBRL-based reports are also harder to mess with, providing increased security.

Plus, it lets users access data in different languages and currencies, making it more convenient for international use.

Who Uses XBRL Filing?

From startups to mid-market and large enterprises, XBRL filing has been used by businesses of all sizes. And over the past decade, the XBRL standard has undergone huge developments to accommodate every imaginable reporting scenario. It features to make reports better in quality, consistent and user-friendly.

This is why XBRL is used by professionals in various contexts, such as:

Regulators

Regulators depend on XBRL filing to get detailed information about the performance and risks of the companies they oversee. Securities regulators and stock exchanges also use it to check how well-listed companies are doing and ensure this info is available for market analysis.

Additionally, business registrars who are tasked with collecting and disseminating corporate data use XBRL to share annual financial statements. Tax authorities also leverage XBRL to gather financial statements and other compliance info from companies, helping them review and process corporate taxes.

Governments

Governments benefit from XBRL filing in two key ways. Firstly, it makes it easier for businesses to streamline the reporting process by cutting down on unnecessary paperwork. This is achieved by making sure everyone uses the same definitions and reducing the number of reports businesses have to submit.

Secondly, government agencies use XBRL to improve their own reporting practices. They standardise how reports are prepared and used within government agencies. This not only makes things run smoother within the government but also ensures that when reports are shared with the public, they’re clear and consistent.

In a nutshell, XBRL makes it simpler for businesses to report to government agencies, and it helps the government share information more effectively.

Accountants

Accountants mainly use XBRL to assist their clients in meeting reporting requirements. They often play a big role in creating XBRL reports, making sure the financial statements are structured and presented correctly.

Essentially, XBRL is a tool that helps accountants ensure their clients’ reports are in line with the necessary standards and regulations.

Companies

Companies use XBRL filing to share important information with regulators or stock exchanges. This ensures that they comply with regulations and can operate within the established guidelines.

Large enterprises with complex structures also use it to move information accurately within their organisation. This way, everyone has access to consistent and reliable information, reducing back-and-forth communication across departments.

Most importantly, XBRL filing is utilised in supply chains to exchange information. It helps them operate more efficiently and respond better to changes and challenges.

Types of XBRL Filing Formats

Depending on the size of the Company and its activities, there are four different ways they can submit their information using XBRL. This includes:

Full XBRL

The Full XBRL template is made for companies that want to submit their financial statements using basic XBRL features. This template includes approximately 210 data elements, which clearly show how a company is performing financially.

Through the Full XBRL Filing, companies can:

1. Make it simpler for regulators, investors and other entities to access and understand the data.
2. Upload financial data from their statements and selected notes.
3. Guarantee accurate reporting of their financial information.

Full XBRL financial reporting also requires companies to prepare certain documents. For instance, you will be asked to submit the following in Singapore:

• Balance sheet
• Auditor’s reports
• Income statement
• Cash flow statement
• Director’s report

Simplified XBRL

The Simplified XBRL template is specifically designed for smaller businesses and Companies that are not publicly traded. It comes with around 120 data elements and is a simpler option for companies that want to submit important financial data in XBRL format. This format also includes a complete set of financial statements in PDF.

With this template, business owners can share all the necessary info about their company’s financial performance without being too complicated.

XBRL FSH For Banks

XBRL FSH for banks is an XBRL filing template for banking institutions. It contains 80 data elements for filing, and it is made to meet the unique reporting requirements of banks. This format also ensures that banks present their financial data in a standardised and easy-to-access way.

Using XBRL FSH for banks to file financial statements comes with a few benefits:

• Simplified data aggregation
• Cost-effectiveness
• Compliance with regulatory requirements
• Structured and controlled data
• Enhanced understanding of performance and risk.

XBRL FSH For Insurance

The XBRL FSH template tailored for the insurance sector improves the reporting process for insurance companies. It offers a structured template with around 80 data elements, including all relevant details in financial performance and position.

This makes it easy and quick for insurance companies to share accurate information about their business. It also comes with a few benefits:

1. Ensures compliance for insurance companies.
2. Puts all the financial data in a clear and standard way.
3. Makes it easy for entities, like the government and investors, to compare and understand the financial info. This is important when filing financial statements.

Who Needs to File Financial Statements in XBRL Format in Singapore?

Although XBRL filing was established in 1998, it was only introduced by ACRA in Singapore on November 1, 2007. Since then, all Singapore companies—limited or unlimited by shares—must file their financial statements with ACRA in XBRL format.

But which financial statements are required to be filed in XBRL format? According to ACRA, this includes:

1. Balance sheet
2. Income statement
3. Cash flow statement
4. Statement of changes in equity

Keep in mind that non-compliance with XBRL filing requirements can lead to hefty fines as per Section 197 of the Companies Act. This may include fines for late submissions, varying between $300 and $500 depending on the seriousness of the violation.

And if entities and directors are found guilty of three or more filing violations within five years, they may face disqualification.

Who Is Exempt From XBRL Filing Requirements?

Entities falling under the following categories are exempted from XBRL filing requirements in Singapore:

1. Merchant and commercial banks
2. Finance companies regulated by the Monetary Authority of Singapore (MAS)
3. Licensed insurers
4. Solvent-exempt private companies (solvent EPCs)
5. Companies utilising accounting standards other than Singapore Financial Reporting Standards (SFRS), SFRS for Small Entities and IFRS

These exempted entities have the option to file their financial statements in PDF format. However, banks, finance companies and insurers are still mandated to submit Financial Statements Highlights (FSH) in XBRL format, despite being exempted from the full XBRL filing requirements.

XBRL Filing in Singapore: A Step-by-Step Guide

To help you get started on XBRL filing in Singapore, here are the required steps you should follow:

1. Get the BizFinx preparation tool for free from the ACRA website.
2. Open your Company’s financial statements in either Microsoft Word or Excel, as presented during the annual general meeting.
3. Fill in all financial details using the provided template and relevant XBRL tags. If certain information was not discussed at the Annual General Meeting (AGM), leave those fields empty.
4. Review and fix any highlighted errors, if present. Validate your XBRL financial statements offline.
5. Upload and verify your XBRL financial statements directly from BizFinx. They remain valid for 14 days. Just click the ‘Acknowledge and Upload’ button to submit. Once uploaded, you will receive a confirmation.

If you mistakenly upload the XBRL financial statements, you can delete them and upload the correct ones. Refer to the guidelines on this website for detailed instructions.

1. Access BizFile, log in and submit the annual return with the uploaded XBRL financial statements.

When Is The XBRL Filing Deadline in Singapore?

The deadline for submitting financial reports in XBRL format varies for different types of Companies in Singapore. For example, while non-listed companies have a seven-month deadline, listed ones only have five. If you miss these deadlines, you might face penalties ranging from $300 to $500.

However, if you need more time, you can ask for an extension by following these steps:

1. Log into ACRA’s online portal.
2. Choose ‘Extension of Time’ under ‘eServices.’
3. Submit your request.

Keep in mind that it may take up to 14 days for the request to be processed, so it’s a good idea to plan ahead to avoid any penalties.

Final Thoughts

It is easy to assume that XBRL filing is just about ticking boxes, complying with regulations and making sure you don’t pay hefty fines. It’s about paving the way for a more transparent, efficient and interconnected financial landscape not just in Singapore, but globally.

By embracing this digital language, businesses gain access to data-driven insights, enhanced transparency, streamlined reporting and more. It also helps you guarantee that your Company meets international standards, which can open doors to new markets.

However, we also understand that getting familiar with XBRL conversion can be overwhelming. Luckily, P & W Consulting is here to help you do it the right way. From tax compliance to book-keeping and corporate secretarial services, we will make your financial reporting easier and more efficient.

Contact us today and learn more about our services!

FAQs

Is XBRL filing mandatory in Singapore?

Yes, XBRL filing is mandatory for most incorporated companies in Singapore. Since November 1, 2007, all limited or unlimited shares companies must file their financial statements with ACRA (Accounting and Corporate Regulatory Authority) in XBRL format.

When do I file XBRL?

The XBRL filing deadline in Singapore depends on your Company type:

Non-listed companies: 7 months after the financial year-end.

Listed companies: 5 months after the financial year-end.

Missing the deadline can result in penalties ranging from $300 to $500.

Who is exempted from XBRL Filing in Singapore?

The following entities are exempt from XBRL filing requirements:

• Merchant and commercial banks
• Finance companies regulated by the Monetary Authority of Singapore (MAS)
• Licensed insurers
• Solvent-exempt private companies (solvent EPCs)
• Companies using accounting standards other than Singapore Financial Reporting Standards (SFRS), SFRS for Small Entities and IFRS

However, even some exempt entities have to submit Financial Statements Highlights (FSH) in XBRL format.

About P & W Consulting

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We also offer other solutions to assist SMEs and startups in their financial management challenges. From our bookkeeping and accounting services, payroll services, to corporate secretarial services, explore how our professional solutions can help elevate your businesses. P & W Consulting is here to solve the tax and financial hurdles with holistic support. Contact us today for a free consultation.