Singapore is a global business hub, known for its transparent and efficient regulatory environment. One of the key aspects that make doing business in Singapore so attractive is the country’s strong emphasis on corporate governance and compliance. As part of its efforts to maintain a transparent and accountable business environment, Singapore requires companies to file their financial statements in XBRL (Extensible Business Reporting Language) format.
For foreign entrepreneurs looking to incorporate a business in Singapore, understanding XBRL filing is crucial. It is not only a regulatory requirement but also a tool that enhances the ease and accuracy of financial reporting, benefiting both companies and stakeholders.
This article will explore the XBRL filing requirement for companies in Singapore, the advantages of using this format, and the process of filing XBRL with ACRA (Accounting and Corporate Regulatory Authority).
What is XBRL Filing?
Key Features of XBRL:
- Machine-readable format: XBRL allows data to be processed automatically by software, reducing the chances of errors in reporting.
- Standardized: Financial data is presented in a consistent manner, making it easier for users to compare data across different companies and sectors.
- Efficient reporting: XBRL facilitates faster and more efficient financial data filing, improving the overall reporting process for companies and regulators.
Which Companies Are Required to File XBRL in Singapore?
In Singapore, the filing of financial statements in XBRL format is mandatory for most companies, with specific exemptions based on the company’s nature, size, and financial status. Below is a summary of the filing requirements for different types of companies as per the ACRA guidelines:
- All Singapore-Incorporated Companies (Except Exemptions)
All SG-incorporated companies, except those exempted under specific conditions, are required to file their financial statements (FS) in XBRL format. However, the extent of the filing varies depending on the company’s size and type:
- *Smaller and **Non-Publicly Accountable Companies: These companies are required to file FS in the Simplified XBRL template, along with a PDF copy of the FS authorized by the directors.
- Other Companies: Larger or publicly accountable companies are required to file FS in the Full XBRL template, accompanied by a PDF copy of the FS authorized by the directors.
- Exempt Private Companies (EPCs) that are Insolvent
Exempt private companies that are insolvent are also required to file their FS in XBRL format, and the extent of the XBRL filing will be based on the company’s operations and size. Smaller companies within this category must file FS in the Simplified XBRL template, while others will follow the Full XBRL template.
- Exempt Private Companies (EPCs) that are Solvent
For solvent EPCs, there is no requirement to file financial statements unless the company opts to do so voluntarily. If a solvent EPC chooses to file its FS, it can choose to submit them in either XBRL format or as a PDF copy authorized by the directors.
- Companies in Banking, Finance, and Insurance Regulated by MAS
For companies in the banking, finance, and insurance sectors regulated by the Monetary Authority of Singapore (MAS), they are required to file their FS in XBRL FSH (Banks) or XBRL FSH (Insurance) templates, along with a PDF copy of the FS authorized by the directors.
- Companies Using Accounting Standards Other Than Singapore’s Prescribed Standards or IFRS
Companies that prepare their FS using accounting standards other than Singapore’s prescribed accounting standards or International Financial Reporting Standards (IFRS) are required to file their financial statements only in PDF format, rather than in XBRL format.
- Companies Limited by Guarantee
Companies limited by guarantee, typically non-profit organizations, are required to file their financial statements in PDF format only, as they are exempt from filing in XBRL.
- Foreign Companies with Singapore Branches
Foreign companies with a branch in Singapore are not required to file their financial statements in XBRL format. Instead, they need to submit their FS in PDF format, authorized by the directors.
*A smaller company refers to a company whose revenue and total assets do not exceed SGD 500,000 for the current financial year. These limits apply to the company’s consolidated figures if applicable, and FS must be assessed based on these thresholds.
**A non-publicly accountable company refers to a company that is not listed on a securities exchange or does not issue debt or equity instruments for trading. Additionally, it excludes certain financial institutions such as licensed banks, insurers, or capital market services providers.
What Financial Statements Are Required to Be Filed in XBRL Format?
The primary financial statements that need to be filed in XBRL format include:
- Balance Sheet: The balance sheet shows the financial position of the company at a specific point in time, listing assets, liabilities, and equity.
- Income Statement: The income statement summarizes the company’s revenues, costs, and profits during a specific period.
- Cash Flow Statement: This statement shows the company’s inflows and outflows of cash during a specific period, highlighting operational, investment, and financing activities.
- Statement of Changes in Equity: This statement shows changes in the company’s equity during a financial period.
- Notes to Financial Statements: Any additional explanatory notes required to clarify the financial statements must also be included.
These documents must be submitted through ACRA’s BizFile portal, where they can be reviewed by regulators and used to assess the company’s compliance with accounting and regulatory standards.
How to File XBRL Financial Statements in Singapore
Filing XBRL financial statements with ACRA is a relatively straightforward process, though it does require some preparation and understanding of the specific XBRL format. Here is a breakdown of the steps involved in XBRL filing:
- Prepare Financial Statements in XBRL Format
Before filing, your company’s financial statements (balance sheet, income statement, etc.) must be converted into XBRL format. This can be done manually by using specialized XBRL software, which can be downloaded from ACRA’s XBRL Filing and Resources page or by utilizing services that automatically convert financial data into the required format. The XBRL format must follow the prescribed taxonomy, which includes specific tags for each financial item.
- Validateand Upload
Once your financial statements are prepared in XBRL format, you can validate them using the XBRL software, which will check the file for genuine or possible errors. The XBRL file can be uploaded via the XBRL software once all genuine errors have been corrected, and any possible errors have been reviewed and confirmed not to be issues.
- SubmitThrough Bizfile Portal
After uploading the XBRL file, it will be shown in your company’s Annual Return page on the Bizfile Portal. You may proceed to fill in the required information in the Annual Return. Once everything is in order, you may submit the Annual Return with the XBRL file together with the financial statements in pdf format, if required.
How Premia TNC Can Help with XBRL Filing
For foreign entrepreneurs incorporating a company in Singapore, understanding and adhering to regulatory requirements like XBRL filing can be daunting. At Premia TNC, we offer comprehensive corporate services, including XBRL filing assistance, as part of our accounting services to ensure your company remains fully compliant with regulatory requirements.
Our team of professionals can help you prepare your financial statements in XBRL format, file them with ACRA, and ensure that your company remains compliant with Singapore’s regulatory standards. By working with us, you can focus on growing your business while we handle the complexities of financial reporting and regulatory compliance.