MBRS vs Traditional Reporting: Advantages and Disadvantages for Financial Companies

What is MBRS?

Before discussing the benefits and the drawbacks, it is first vital to understand the terms MBRS and traditional compliance reporting. MBRS, in Malaysia’s context, refers to the “Malaysian Business Reporting System.” 

The Malaysian Business Reporting System (MBRS) is a digital platform introduced by the Companies Commission of Malaysia (SSM – Suruhanjaya Syarikat Malaysia) to facilitate the submission of various statutory corporate and financial documents by companies in Malaysia. MBRS aims to streamline and modernise the reporting process, making it more efficient and transparent.

Know all about XBRL MBRS Reporting.

What is Traditional Reporting?

Organisations have used traditional methods and practices to gather, display, and communicate financial and business information. These techniques predate the current digital era and frequently use tangible papers, printed reports, and labour-intensive manual procedures.

The more contemporary and technologically advanced reporting techniques, such as electronic filing and online dashboards, contrast traditional reporting. 

Advantages and Disadvantages for Financial Companies 

The MBRS and conventional reporting systems have their advantages and drawbacks for financial organisations in financial reporting. Here is a contrast between the two:

• Time Management:

  The process of gathering, examining, and reporting financial data is automated by MBRS. As a result, manual data entry and validation tasks take less time and effort, which enables financial organisations to produce reports more quickly and precisely. Manual data entry and validation are typical in traditional reporting techniques, which can be time-consuming and error-prone.

• Transparency:

  By making financial data simple for regulators and investors to obtain and comprehend, MBRS improves transparency. It lessens the likelihood of fraud or data manipulation. It may be difficult for regulators and investors to swiftly and readily obtain and analyse the data in traditional reports due to a lack of openness.

• Data Analytics:

  Machine-readable data enables more complex data analytics and predictive modelling, aiding financial businesses in making wise decisions and spotting patterns and threats more effectively. Advanced data analytics and trend analysis may not work well with traditional reports.

• Expenditure:

  Over time, MBRS may reduce labour and compliance effort costs. Although installing MBRS systems may require a significant upfront expenditure, the long-term advantages may outweigh the expenses. Traditional reporting techniques typically have lower startup costs because they don’t need as much technical infrastructure. The likelihood of errors growing when data entry is done manually might have significant repercussions for financial reporting.

Why Choose DataTracks for XBRL?

With XBRL becoming mandatory in Malaysia, it has become compulsory for financial organisations to submit their financial documents in this format. XBRL can be challenging and complex for many companies despite its many advantages. This is where we at DataTracks come to your rescue and ensure that reporting can be done correctly.

Our expert team ensures the delivery of excellent reports in terms of effectiveness, accuracy, transparency, and data analytics. To discover how we can help you, get in touch with us at +60 392126125 or mail us at enquiry@datatracks.my