XBRL stands for eXtensible Business Reporting Language and is a global framework for exchanging business information. Having a common framework to analyse data makes it easier to exchange and analyse business information of companies. XBRL allows for the generation of data which may be used by a large group of stakeholders for decision-making and analysis, namely the management of the company, potential investors, financial analysts and accountants.
You may need to file your financial statements in XBRL format based on your company structure. For exempt private companies, XBRL financial statements reporting are not necessary. For companies that are not exempt, you will need your financial statements to be prepared in XBRL format. Exempt Private Companies have 20 or fewer shareholders and none of the shareholders is a corporation.
You can prepare the XBRL financial statements yourself for your company if you have a good grasp of accounting knowledge. You will need to submit your XBRL report at www.bizfinx.gov.sg. There are tools and guides to help you with the preparation. However, do take note that the reports have to be done accurately and competently. If there are errors in your XBRL financial statements filed with ACRA, you will have to rectify them through the following:
- file a Notice of Error, if it is a typographical/clerical error
- file a Court Order, if the error is of a substantial nature and not arising due to clerical/typographical errors
Companies may face prosecution if the errors are found to be materially false or misleading.
You may want to access this guide to learn more about XBRL Filing Requirements.
Preparers’ Guide for Revised ACRA XBRL Filing Requirements
As there are penalties for inaccurate filing, company directors will usually appoint professionals who are familiar with preparing XBRL financial statements to deal with the matter. Our firm does assist clients in the preparation of all financial statements. You may approach us to get a non-obligatory quote.
For accounting advice, you may contact our accounting partner Singapore Accounting Services at [email protected].
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