Why should you file in XBRL?Why is XBRL the format in which SSM-MBRS needs financial statements? Learn more about advantages of XBRL for the regulator, filers and consumers.
Why should you file financial statements in iXBRL format with SSM-MBRS?
The Companies Commission of Malaysia (CCM), commonly known as Suruhanjaya Syarikat Malaysia (SSM) in Malay term, is a statutory body which regulates company and business affairs in Malaysia. It is a result merger between the Registrar of Companies (ROC) and the Registrar of Businesses (ROB) in Malaysia on April 16, 2002.
Earlier all companies incorporated in Malaysia, that are required to file their annual statutory financial statements to SSM, submitted their returns in non-digital formats and transacted over the counter at designated SSM offices. On September 27th 2018, SSM introduced a digital submission platform based on the eXtensible Business Reporting Language (“XBRL”) format. This submission platform is known as the Malaysian Business Reporting System (“MBRS”) which allows for the digital annual filings of:
- Financial Statements and Reports (“FS”);
- Annual Returns (“AR”); and;
- Exemption Applications (“EA”) related to FS and AR applications.;
The guiding principles behind the financial and the non-financial scopes for MBRS is based on the Companies Act 2016, Malaysian Private Entities Reporting Standards (MPERS) and Malaysian Financial Reporting Standards (MFRS).
The MBRS filing requirements will be applicable for companies with statutory financial periods ending on or after 31 December 2018.
Beginning November 2018, it will start to be mandatory for companies to submit their annual statements, unaudited financial statements and Certificate for Exempt Private Company (EPC) documents to the Companies Commission of Malaysia (SSM) using the MBRS in XBRL format
With an estimated 1.2 million companies in Malaysia, this initiative by SSM is a major step forward in enhancing information and trust within the business.
Advantages for the regulator
XBRL filing allows for greater transparency as data can be sliced and diced almost immediately for analysis with software tools. This affords a far wider scope and complexity for business analytics than manual comparisons of financial statements.
The MBRS in XBRL format will allow the SSM to determine industry trends and gain a high-level understanding of business in Malaysia. By identifying various trends, SSM will be able to pinpoint issues relating to the financial soundness of individual operations. SSM will also be able to compare companies with companies and industries with industries over different periods.
Advantages for the user and consumer
Companies can also tap on XBRL enabled data to enhance their business decision making process. With more companies filing in full XBRL, analysis of business data can be more efficiently generated and made available to the business community. Enhancing the availability and accessibility of such information also promotes greater transparency in the marketplace which is crucial for sustainable business growth.