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Your Guide to MBRS/XBRL Taxonomies, Syntax & Compliance

The Malaysian business landscape has witnessed a substantial shift towards digitalisation, and annual return filing is no exception. XBRL (eXtensible Business Reporting Language) has emerged as the dominant force, transforming how companies submit financial data to SSM. This article delves into the XBRL universe, explaining its fundamentals and significance and how to navigate XBRL filing seamlessly.

What is XBRL and How Does it Work?

Think of XBRL as a universal language for business reporting. Imagine barcodes for financial data. XBRL assigns unique tags to financial information, enabling accurate and efficient reporting. Financial statements traditionally exist in formats like PDF or HTML, hindering data analysis and exchange. XBRL bridges this gap by:

  • Standardisation: It establishes a standard set of taxonomies (definitions) for financial terms, ensuring consistency across reports.
  • Data Tagging: Each financial element, like revenue or expenses, is assigned a specific tag, facilitating automated data extraction and analysis.
  • Enhanced Accuracy: XBRL reduces errors by enabling automated validation of reported data against predefined rules.

In essence, XBRL translates financial data into a machine-readable format, similar to how digital maps revolutionised navigation. This digital format offers a plethora of benefits:

  • Streamlined Reporting: XBRL simplifies data preparation and submission, saving businesses valuable time and resources.
  • Improved Analysis: Regulators and investors can analyse vast amounts of financial data effortlessly, leading to better decision-making.
  • Increased Transparency: Standardised reporting fosters greater transparency and trust in the financial system.

Understanding XBRL Fundamentals: Concepts, Schemas, and Taxonomies

XBRL utilises a specific set of building blocks to structure financial data. Here are some XBRL fundamentals you should be acquainted with:

  • Concepts: The fundamental unit of XBRL represents a specific financial element like revenue or inventory.
  • Taxonomies: A collection of defined concepts, along with their relationships and descriptions. These act as dictionaries for XBRL, ensuring consistency in reporting financial information.
  • XML Schemas: These define the technical structure of XBRL reports, specifying how concepts are linked and how data is formatted.

Malaysia utilises the SSM Taxonomy, a specific taxonomy aligned with Malaysian financial reporting standards. This taxonomy dictates companies’ concepts and corresponding tags when filing their annual returns.

The Current and Future Landscape of XBRL in Malaysia

Malaysian regulatory bodies, such as the Suruhanjaya Syarikat Malaysia (SSM), Securities Commission Malaysia (SC), and Inland Revenue Board Of Malaysia (IRBM), have actively mandated XBRL for annual return filing. This shift ensures efficient data collection, analysis, and regulatory oversight.

Looking ahead, XBRL is poised to play an even more prominent role. As the taxonomy evolves to encompass a broader range of financial data, stakeholders can expect further benefits:

  • Enhanced Risk Management: Regulators can leverage XBRL data to identify potential financial risks more effectively.
  • Comparative Analysis: Using standardised data, investors can gain deeper insights by comparing companies’ financial performance.
  • Automated Compliance: Businesses can automate compliance processes with regulatory bodies as XBRL adoption matures.

How DataTracks Can Help You Navigate XBRL Filing?

While XBRL offers significant advantages, navigating the intricacies of XBRL taxonomies and XBRL instance document creation can be challenging. DataTracks, a leading financial technology provider, empowers Malaysian businesses with a comprehensive suite of XBRL solutions:

  • XBRL Conversion Services: Our experts seamlessly convert financial statements into XBRL format, ensuring compliance with SSM and SC regulations.
  • XBRL Filing Software: DataTracks offers user-friendly software streamlining XBRL report preparation and submission, saving time and effort.
  • Expert Support: Our dedicated team provides continuous support and guidance throughout the XBRL filing process.

By embracing MBRS XBRL and partnering with DataTracks, Malaysian businesses can ensure efficient, accurate, and hassle-free annual return filing. For further information, email enquiry@datatracks.in or call us at +91 73050 74307.

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