Challenges and Opportunities in Meeting XBRL Mandate for SSM Filing

While there are several opportunities for the XBRL mandate for businesses in Malaysia, there are also several challenges. With XBRL still relatively new in Malaysia, many Malaysian companies have not yet become comfortable using XBRL to generate annual financial statements and reports. Filers face several difficulties complying with the XBRL requirements, making the XBRL mandate seem challenging. Since XBRL is getting close to being mandated in Malaysia, it is important to know some of the major challenges and opportunities in meeting XBRL’s mandate for SSM filing. 

Opportunities of XBRL Mandate

XBRL has brought several advantages for companies in Malaysia, such as:

• Automated Business Reporting: XBRL mandate will allow companies to file their AFS electronically. Since all companies in Malaysia will be required to do so, it will help SSM to get accurate financial information from registered companies, offering analytical insights into the Malaysian business landscape. 
• Better Exchange of Data: XBRL enables a better exchange of financial information among users and regulators like financial authorities, tax authorities, the central bank and the government. 
• Increased Efficiency of Data Analysis: XBRL provides transparent data that allows analysts to filter through the data with business intelligence automation. As a result, the XBRL mandate will improve the efficiency of the Malaysian capital markets. 

Challenges of XBRL Mandate

Even though there are several advantages and opportunities to implementing the XBRL mandate, there are also certain challenges in complying with the mandate. These challenges include:

• Requires In-Depth Knowledge: XBRL filing requires in-depth knowledge of the XBRL taxonomy, document structure, documents required, and use of the software. A lack of qualification or experience can lead to errors in the XBRL documents. 
• Complex, Time-Consuming Process: XBRL filing is a lengthy process that requires preparers to tag all the elements in their financial statements in XBRL format. Once all the items are tagged, they must be validated using a validation tool. 
• The Need for Manual Efforts: XBRL preparation m-Tool is a quite manual process. The need for human interference persists. Preparers must manually perform entries to convert the financial data into XBRL format. 

XBRL mandate Bottom Line

XBRL mandate is just around the corner! Malaysian companies must prepare themselves to meet compliance requirements. While hiring and preparing an in-house team for XBRL compliance may add to the cost and efforts, outsourcing can be the ideal choice for companies. Expand your XBRL requirements to a trusted vendor will help you not only minimise time, cost, and effort but also ensure error-free reports for SSM filing along with enabling you to focus on core activities. 

DataTracks, a global leader in financial reporting, has over 18 years of experience in filing error-free XBRL reports. The professionals at the company have successfully filed 348,000+ XBRL reports for more than 23,400 clients. So what are you waiting for? Get in touch with a DataTracks expert at +60-392-126-125 or email at enquiry@datatracks.my to let go of the challenges and embrace the opportunities of XBRL mandate for SSM filing.