Singapore’s XBRL & Malaysia’s MBRS: Unlocking Efficiency in Financial Reporting

Singapore’s XBRL & Malaysia’s MBRS: Unlocking Efficiency in Financial Reporting

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As businesses in our region adapt to the evolving landscape of financial reporting, it’s essential to stay informed about key regulatory developments that enhance transparency and streamline processes.

In Singapore, the Accounting and Corporate Regulatory Authority (ACRA) requires all incorporated companies to submit their financial reporting in eXtensible Business Reporting Language (XBRL). This requirement not only ensures that submissions are structured and machine-readable but also significantly improves data transparency and analysis. Companies must choose from one of four formats —Full XBRL, Simplified XBRL, XBRL FSH for Banks, or XBRL FSH for Insurers. While essential, conversion to XBRL can be complex, requiring careful handling of data to maintain accuracy in reporting.

Meanwhile, in Malaysia, the Companies Commission of Malaysia (CCM) has also implemented a similar requirement, making it mandatory for companies to submit financial statements, annual returns, and exemption applications via the Malaysian Business Reporting System (MBRS). The system employs the XBRL format, enhancing transparency and efficiency while helping companies improve data quality and reduce errors. 

Notably, as of 25th September 2024, Malaysia has launched MBRS 2.0, which introduces enhanced features designed to simplify financial reporting even further. This updated system expands data classification and improves consistency, allowing companies to categorise financial information more accurately and ensuring compliance with CCM regulations.

Here’s an overview of Singapore’s XBRL and Malaysia’s MBRS standards:

 
 
XBRL (Singapore)
MBRS (Malaysia)
Regulatory Body
ACRA
CCM
Introductory Date
2007
(mandatory for filing financial statements)
2018
(introduced as part of CCM’s digital transformation)
Updates in Recent Versions
Enhanced taxonomy, new data points for compliance
MBRS 2.0 enhances taxonomy and compliance features
Coverage
Mandatory for most Singapore-incorporated companies
Mandatory for certain company filings with SSM
(primarily to private limited companies [Sdn. Bhd.])
Scope of Filing
Includes financial statements such as balance sheets, profit and loss accounts in structured XBRL taxonomy
MBRS 2.0 expands beyond financial statements to include compliance reports, non-financial disclosures, and governance-related information.
Filing Platform
BizFinX portal for submission
MBRS portal for online submission
 
Adapting to the requirements of both Singapore’s XBRL and Malaysia’s MBRS can present several challenges. We take a look at 6 common issues companies may face:
 

1. Data Mapping Complexity

Financial data must be accurately mapped to each system's taxonomy, especially for companies with complex structures.

2. Multi-Entity Reporting

Consolidating data for multiple entities can be complex, as each has its own formats thus increasing the risk of errors.

 

3. Need for Technical Expertise

XBRL and MBRS require specialised knowledge, and a lack of in-house expertise can lead to delays and compliance risks.

4. Frequent Taxonomy Updates

Regular updates, like MBRS 2.0, require ongoing attention to ensure data stays properly formatted.

 

5. Software Challenges

Selecting the right conversion software is critical, as the wrong choice can lead to inefficiencies or errors.

6. Accuracy Requirements

Accurate data is vital. Errors in conversion can lead to non-compliance and costly re-submissions.

 
As these developments unfold, it’s clear that both Singapore and Malaysia are prioritising better data management and reporting standards, ultimately fostering a more transparent and efficient business environment. Staying ahead of these changes will be crucial for companies looking to navigate the complexities of financial reporting successfully.
 
 
With these complexities in mind, outsourcing XBRL and MBRS conversion to a corporate service provider like BoardRoom can greatly enhance efficiency and streamline processes. 

Here are some key advantages when companies choose to outsource their XBRL/MBRS conversion and filing process:
​​​
  • Expertise, Scalability, & Compliance
    Leverage expert insights to minimise errors and ensure compliance, while easily adapting services to meet evolving reporting needs and regulations.
     
  • Cost & Time Savings
    Lower your expenses and avoid fines associated with filing errors, as well as costs for specialised software and training, by ultilising high-quality services where providers handle the end-to-end conversion process on your behalf.
     
  •  Streamlined Processes & Quality Control
    Accelerate financial reporting and ensure timely submissions, backed by rigorous quality control measures that enhance accuracy and minimise costly corrections.

Ready to outsource your company’s XBRL and MBRS conversion?
BoardRoom is here to help improve efficiency, reduce costs, and minimise compliance risks.

Let our team of experts assist you in enhancing your reporting accuracy and paving the way for your business success. 
TALK TO US TODAY
 

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Unlocking Innovation: Maximising Tax Deductions Through The EIS

Unlocking Innovation: Maximising Tax Deductions Through The EIS

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Unlocking Innovation: Maximising Tax Deductions Through The Enterprise Innovation Scheme (EIS)

Welcome to another Issue of BoardRoom's Asia Tax Insights!

In today's fast-paced business environment, organisations are constantly seeking new ways to drive innovation while reducing their tax liabilities. The Enterprise Innovation Scheme (EIS), effective from YA 2024 to YA 2028, is designed to help with just that incentivise businesses in Singapore to invest in research, development, and capability-building activities through enhanced tax deductions.

If you need a little hand with the process, BoardRoom, in partnership with FI Group, is here to guide you through the EIS application. From identifying eligible expenses to managing the entire submission process, our expert team ensures compliance while helping you maximise tax savings. 

Free up your internal resources, focus on business growth, and let us handle the complexities.

Read our report to learn how you can fully benefit from the EIS and drive innovation in your business.

 
DISCOVER THE BENEFITS
 

 
 
 

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Malaysia’s Commitment to Sustainability: A Call to Action for Listed Companies

Malaysia’s Commitment to Sustainability

Malaysia’s Commitment to Sustainability: A Call to Action for Listed Companies

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As global climate pressures mount, Malaysia is stepping up with ambitious sustainability initiatives that will reshape how businesses operate. Listed companies must now navigate a new era of environmental accountability, with heightened expectations from investors and regulators alike. 

The three major initiatives shaping the landscape for listed companies in Malaysia include the National Sustainability Reporting Framework (NSRF) which integrates global standards for transparent sustainability reporting, helping businesses align with investor expectations. The National Climate Change Policy 2.0 focuses on managing transition and physical risks, pushing companies to reduce carbon footprints and adapt to new regulatory demands. Finally, the upcoming Climate Change Bill will signal legal accountability for emissions reductions. 

Businesses must act now to stay competitive. Discover more about these critical developments and their business implications in our comprehensive report.

 
 
 
 

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The Evolving Landscape of Sustainability Disclosures: What You Need to Know

The Evolving Landscape of Sustainability Disclosures What You Need to Know

The Evolving Landscape of Sustainability Disclosures: What You Need to Know

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As the world grapples with climate change, social inequality, and governance challenges, sustainability disclosures are now transitioning from voluntary to mandatory reporting. This shift is also driven by rising investor demands and global expectations for transparency.

In this issue, we explore "The Evolving Landscape of Sustainability Disclosures" and how regions in APAC, including Singapore, Australia, and Malaysia, are leading the way with new standards.

Learn how these changes can impact your business, ensure compliance, and leverage new opportunities with practical recommendations on enhancing sustainability disclosures.

 
 
 
 
 

 

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Transforming Governance: The Imperative for Boards to Embrace AI & Sustainability

Transforming Governance ESG

Transforming Governance: The Imperative for Boards to Embrace AI & Sustainability

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As artificial intelligence (AI) revolutionises industries and disrupts traditional business models, corporate boards face a pressing issue: ensuring they have the right expertise to advise on AI implementation. However, only 30% of board directors feel equipped to oversee AI, a concerning statistic that underscores the need for action. 

To address this, boards can draw on the experience of governing sustainability a similarly transformative issue that demands a shift in business operations and leadership to guide their oversight of AI. Both areas require a nuanced understanding of regulatory compliance, ethical considerations, and risk management. 

Read our comprehensive report as we uncover how boards can effectively monitor AI and sustainability risks and opportunities, and how a collaborative approach between the board and management team can drive value creation and minimise these risks.

 
 
 

 
 

 

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The Digital Revolution of Invoicing: Unlocking Business Potential in APAC

The Digital Revolution of Invoicing: Unlocking Business Potential in APAC

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The Digital Revolution of Invoicing: Unlocking Business Potential in APAC

Welcome to the August Issue of BoardRoom's Asia Tax Insights!

As the digitalisation of tax compliance gains momentum, we take a deep dive into the evolution of e-Invoicing and its impact on businesses across China, Malaysia and Singapore.

In this edition, we present the details of e-invoicing implementation in these key markets, offering insights on how businesses can effectively prepare for this transition. We also discussed the opportunities that this digital shift presents, enabling businesses to streamline their operations and enhance efficiency.

 
 
 
 

 
 
 

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Strengthening Corporate Governance: Understanding Singapore’s CSP and CLLPMA Bills

Strengthening Corporate Governance: Understanding Singapore’s CSP and CLLPMA Bills

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The Corporate Service Providers ("CSP") Bill and Companies and Limited Liability Partnerships (Miscellaneous Amendments) ("CLLPMA") Bill were introduced in Parliament on 6 February 2023 and recently passed by the Singapore Parliament on 2 July 2024.

The bills are designed to enhance Singapore's corporate regulatory framework and will come into operation on a date to be appointed by notification in the gazette. 

Key provisions in both bills include:
  1. introducing a licensing regime for corporate service providers,
  2. strengthening anti-money laundering measures, and 
  3. enhancing transparency and disclosure requirements. 

We cover all the important points you need to know about these bills in our report. 
DOWNLOAD REPORT

Please reach out to your respective client managers in BoardRoom or email us at [email protected] should you require further clarification. 

                
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Tax Strategies for Every Stage: Navigating the Business Lifecycle from Inception to Growth and Exit

Tax Strategies for Every Stage: Navigating the Business Lifecycle from Inception to Growth and Exit

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Tax Strategies for Every Stage: Navigating the Business Lifecycle from Inception to Growth and Exit

Welcome to this month's Asia Tax Insights. In this issue, we explore key tax strategies for each stage of the business cycle, i.e. from setting up an optimal tax structure at inception to leveraging tax incentives for growth and planning for a tax-efficient exit. We hope you find this edition both informative and practical as you steer your business through its various business cycles. 

To learn how strategic tax planning can propel your business forward, download our comprehensive report and discover how efficient tax planning can help enhance your business growth and profitability.

DOWNLOAD REPORT
 

 
 
 

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Time for Transparency: Examining Your Supply Chain

ESG Time for Transparency

Time for Transparency: Examining Your Supply Chain

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Welcome to the July issue of Boardroom’s Think ESG Newsletter. This month, we share more on the recently adopted EU's Corporate Sustainability Due Diligence Directive ("CSDDD") and its impact on Singapore companies.

We will shed light on the intricacies of the directive, identifying which Singaporean companies fall within its scope, and provide an analysis of current performance and areas for improvement.

Additionally, we will share more on why Singaporean companies not affected by this directive should comply with the regulation and consider mapping their supply chain in accordance. All this and also actionable insights for implementing an efficient process to manage supply chain ESG risks in this month’s report.

 
 
 

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ESG in Focus: What SG Companies Need to Know About ESG Reporting

ESG in Focus: What SG Companies Need to Know About ESG Reporting

ESG in Focus: What SG Companies Need to Know About ESG Reporting

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Welcome to the June issue of BoardRoom's Think ESG Newsletter. This month we look at the evolving global ESG reporting landscape and what implications it has on Singaporean Companies.
 

Navigating the Evolving Global ESG Reporting Landscape

As the global focus on Environmental, Social, and Governance (ESG) reporting intensifies, companies worldwide are adapting to new and emerging standards. This trend is driven by major frameworks such as:

  1. the International Sustainability Standards Board (ISSB) Integrated Framework
  2. the US Securities and Exchange Commission (SEC) regulations, and 
  3. the European Union's Corporate Sustainability Reporting Directive (CSRD)

These frameworks aim to create a unified approach to ESG reporting, ensuring that companies sustainability efforts are consistent, transparent, and comparable across different regions.

In Singapore, this evolving landscape poses both challenges and opportunities. The Singapore Exchange (SGX) has introduced mandatory climate-related reporting for listed companies, and the Monetary Authority of Singapore (MAS) has provided guidelines to help companies align with international standards. 

Companies must now navigate these local requirements while also considering global frameworks like the ISSB to ensure compliance and competitiveness.

 

 

Quality & Consistency of ESG Data

One of the primary challenges for Singaporean companies is managing the quality and consistency of their ESG data. Often, data related to sustainability is fragmented across various departments, making it difficult to gather accurate and comprehensive insights.

To address this issue, companies need to deploy advanced data management platforms that can consolidate information from multiple sources. Additionally, engaging with external ESG consultants can help companies standardise their reporting practices and meet diverse regulatory requirements.
 

 

Be Future-ready with a Strong ESG Reporting Plan

The recent survey results highlight a significant gap in ESG readiness among Singaporean executives. A striking 68% of CEOs in Singapore believe their current ESG progress is insufficient to withstand stakeholder scrutiny, while only 8% feel they have the necessary capability to meet new reporting standards.

This underscores the urgent need for companies to build their internal capacities and capabilities in ESG reporting. The survey also revealed that higher costs and difficulties in raising finance are major concerns for companies that fail to meet stakeholder expectations regarding ESG performance.

From the investor's perspective, the integration of sustainability information into fundamental analyses has grown substantially, with 83% of investors now incorporating such data. This trend reflects a broader recognition of the importance of ESG factors in assessing long-term corporate value and risk. Regulatory measures are expected to further enhance investor confidence by addressing current data challenges, thereby fostering a more reliable and transparent sustainability reporting environment.

 

Disclosures at the Core of Your Business

Singapore's regulatory landscape for ESG reporting is becoming increasingly stringent. Climate-related disclosures will be phased in for listed issuers, starting with high-risk industries such as financial services, agriculture, energy, materials, and transportation.

By 2025, these requirements will align with the ISSB standards, reflecting a commitment to international best practices. This phased approach allows companies to gradually build their reporting capabilities while adhering to global standards.

The European Union's CSRD, in conjunction with the EU Taxonomy and Sustainable Finance Disclosure Regulation (SFDR), represents a comprehensive framework for sustainability reporting. The CSRD introduces rigorous reporting requirements and mandates double materiality assessments, compelling companies to disclose not only the financial impact of sustainability risks but also their broader impact on people and the planet.

This directive has significant implications for EU-based companies and their non-EU subsidiaries, including those in Singapore, which will need to comply with these stringent standards.

 

Be Up to Date on ESG Reporting in Singapore

For Singaporean businesses, the implications of these global and local regulations are profound. Companies must integrate environmental considerations into their strategic planning, ensuring that product designs are environmentally attentive.

Boards of directors are increasingly taking direct oversight of environmental pledges, key performance indicators (KPIs), and targets. Transparency and traceability in supply chains are also becoming critical, with companies required to monitor and mitigate the environmental impacts of their upstream suppliers.

To prepare for future reporting requirements, Singaporean companies should conduct thorough gap assessments to identify areas needing improvement. Standardising data collection and reporting practices according to international frameworks like the ISSB and TCFD will be crucial. Engaging stakeholders and verifying reports through external audits can further enhance credibility and compliance.

By adopting active measures, companies can showcase their sustainability achievements, build stakeholder trust, and set new goals for continuous improvement.

 

The evolving ESG reporting landscape presents a complex but essential journey for Singaporean companies. Embracing these changes will not only ensure regulatory compliance but also position businesses as leaders in sustainability, driving long-term value and resilience in an increasingly scrutinised corporate environment.

 
 
 
 
 
 

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