12 July 2024
Editor: ET
In the realm of financial reporting, the use of XBRL (eXtensible Business Reporting Language) has become a standard practice globally. In Singapore, this process is governed by the ACRA Taxonomy.
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This taxonomy is a structured dictionary that aligns with the Accounting Standards and Companies Act, ensuring consistent and comparable financial reporting across different entities.
What is ACRA Taxonomy?
The ACRA Taxonomy is a closed system, meaning that it does not allow the addition or definition of company-specific concepts or relationships between concepts. This restriction is designed to enhance the comparability of financial data collected by the Accounting and Corporate Regulatory Authority (ACRA).
However, the system does permit certain customizations, such as company-specific labels and re-ordering of concepts, allowing for some flexibility in presentation.
Versions of ACRA Taxonomy
ACRA Taxonomy 2022 v1.0
Mandatory from 1 May 2021
Updated to meet revised XBRL filing requirements
ACRA Taxonomy 2020 v1.0
Mandatory from 1 May 2021
Designed for the revised XBRL filing requirements
ACRA Taxonomy 2016
For XBRL filing requirements before 1 May 2021
Utilized by companies for filings prior to the latest updates
Benefits of Using ACRA Taxonomy
The ACRA Taxonomy ensures that financial statements adhere to the stringent requirements set forth by Singapore's regulatory framework. This standardization facilitates:
Enhanced Comparability: By restricting the creation of custom concepts, the taxonomy ensures that financial data can be easily compared across different entities.
Regulatory Compliance: Aligning with the ACRA Taxonomy helps companies meet their legal obligations under the Accounting Standards and Companies Act.
Data Consistency: Uniformity in financial reporting reduces discrepancies and improves the accuracy of financial data submitted to regulatory bodies.
Customization Options
While the ACRA Taxonomy is a closed system, it does allow for certain customizations to accommodate the unique presentation needs of different companies. These include:
Company-Specific Labels: Businesses can use labels that are specific to their reporting needs.
Re-ordering of Concepts: The taxonomy permits re-ordering of concepts to better align with the company's financial statement presentation.
Staying Updated
As the ACRA Taxonomy and the BizFinx system are periodically updated, it is crucial for companies to stay informed about the latest changes. Businesses can subscribe to ACRA's news updates to receive timely information about updates and revisions.
The ACRA Taxonomy is a vital tool for ensuring consistent and accurate financial reporting in Singapore. By adhering to this taxonomy, companies can enhance the comparability of their financial statements, comply with regulatory requirements, and maintain high standards of data accuracy.
Staying updated with the latest versions and understanding the customization options can help businesses effectively navigate the financial reporting landscape.
Further Reading: Workflow for Preparing and Filing XBRL Financial Statements
How Expede Can Help
At Expede.com.sg, we offer expert guidance on navigating the ACRA Taxonomy and the BizFinx system. Our team can assist you in preparing and filing your financial statements in compliance with ACRA requirements, ensuring that your business remains compliant and your financial data is accurately reported.
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