18 November 2024
Editor: ET
Filing financial statements in XBRL (eXtensible Business Reporting Language) format is a critical requirement for businesses in Singapore.
Further Reading: Why Every Business in Singapore Needs a Financial Advisor
Mistakes in the filing process can lead to delays, penalties, or non-compliance with ACRA's regulations. To streamline the process and ensure accuracy, here are the most common errors to watch out for—and how to avoid them.
1. Mismatch Between AGM Financial Statements and XBRL Text Block Data
One of the most frequent mistakes is inconsistency between AGM financial statements and the corresponding text block in XBRL format.
Ensure the "Disclosure of complete set of financial statements" text block is identical to the AGM financial statements.
Use the BizFinx preparation tool’s “Embedded Excel Conversion Utility” to create structured tables that can be accurately pasted into the text block.
2. Discrepancies Between XBRL Data and AGM Financial Statements
The data presented in XBRL filings must align precisely with the AGM financial statements. Common errors include:
Inconsistent Rounding Levels: Ensure values are consistent (e.g., thousands, millions).
Incorrect Currency Indicators: Check for mismatched currencies (e.g., USD vs. SGD).
Format Variations: Ensure the format of statements like income statements (by function or nature) is consistent.
Missing Data: Include all mandatory fields, such as net cash flows and Earnings Per Share (EPS).
Wrong Accounting Standards: Verify the use of SFRS or SFRS for SE standards.
3. Incomplete Templates in XBRL Filings
Leaving required fields blank is a common mistake.
Always complete key templates, such as property, plant, equipment, trade receivables, share capital, and employee benefits.
Only leave fields blank if they are inapplicable to your business.
4. Incorrect Mapping to XBRL Taxonomy
Errors in mapping items to the XBRL taxonomy can cause classification issues.
Apply the “best-fit” principle for mapping items to the correct taxonomy category.
Use the “others” classification only when no appropriate taxonomy exists.
Further Reading: Applying for Exemptions from XBRL Filing Requirements in Singapore
Ensuring accuracy and consistency in XBRL filings is essential for compliance with Singapore’s regulatory requirements. Avoid these common mistakes by double-checking data, completing all required templates, and correctly mapping to the XBRL taxonomy. For expert guidance, companies like Expede provide specialized advisory services to simplify your XBRL filing process.
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