XBRL and its Benefits for Businesses in Singapore
The Accounting and Corporate Regulatory Authority (ACRA) first implemented XBRL in 2007 for corporate financial reporting. The main objective behind this move was to establish a pro-enterprise financial reporting environment for Singapore businesses and a value-enhancing information flow to the business community. After that, ACRA implemented the revised XBRL filing requirements in 2013 to improve the quality of financial statements and enable greater transparency of shared financial information.
XBRL makes it easier for companies in Singapore to prepare their annual financial statements. There are several benefits of using the XBRL format for business in Singapore. Read on to find out these benefits.
Benefits of XBRL Filing
As a business owner in Singapore, it is mandatory to follow statutory compliance and XBRL filing requirements.
The benefits of XBRL filing in Singapore include the following:
1. Sharing of information: The goal of XBRL filing is to improve the re-usability of financial data. The re-usability of data becomes possible when the information is shared between businesses and regulatory authorities in a structured format like XBRL.
2. Building trust: Filing data in a structured XBRL format can help Singapore companies file taxes and show business information like inventory, output, etc. Since this information is easily accessible, it becomes useful in building trust and raising funds for business expansion.
3. Enhanced Decision making: Since all companies file their annual financial statements in XBRL format, business data analysis becomes more efficient and is easily made available to the business community. As a result, it will improve the decision-making process for the companies.
4. Data transparency: The financial data about a company’s performance help stock traders and investors make investment decisions. The transparency of data filed in XBRL format can also be useful to financial analysts, institutions, and regulators.
5. Ability to automate report generation: Financial report generation can be challenging and requires additional resources, time, and energy. However, with certain tools and software, it is possible to automate XBRL report generation and save time.
6. Faster and more accurate handling of data: XBRL format allows companies to handle large amounts of data with ease. While manual report generation was lengthy and more prone to errors, XBRL filing is faster and more accurate.
XBRL report Summing Up!
Despite the challenges businesses face in generating XBRL reports, the format has proved extremely beneficial. XBRL filing in Singapore has made it easier for companies to improve data quality, share their financial data, and increase transparency. XBRL has also proved beneficial for investors and regulators, allowing them to compare the data quickly and easily.
So now that you know the benefits of XBRL, it is time to avail these benefits for your business. Looking to outsource your XBRL requirements while you focus on your core activities? Get in touch with a DataTracks expert @ +65-31-582-850 or email enquiry@datatracks.com.sg and make your way towards error-free XBRL filing!