XBRL filing is an inclusive international standard for digital business reporting that is run by XBRL International, a multinational not-for-profit consortium. They are dedicated to strengthening public-interest news. XBRL filing is used in over 50 countries around the world. Every year, millions of XBRL filing documents are produced, replacing older, paper-based records with more useful, reliable, and precise digital copies.
In a nutshell, accounting services Singapore provides XBRL filing includes a vocabulary for authoritatively defining reporting terminology. These terminologies may then be used to describe the contents of financial statements or other types of enforcement, results, and company reporting uniquely. XBRL allows reporting data to be transferred between organizations in a timely, reliable, and digital manner.
The transition from print, PDF, and HTML-based reports to XBRL-based reports is analogous to the transition from film photography to digital photography, or from paper maps to digital maps. Since the content is precisely defined, platform-independent, testable, and digital, the new format helps you to do all that was previously possible while still opening up a host of new capabilities. Digital business reporting in XBRL format, like digital charts, makes it easier for people to use, upload, analyze, and add value to results.
What is the purpose of XBRL?
XBRL filing, also known as bar codes for reporting, improves the accuracy and efficiency of reporting. It enables the association of specific tags with recorded facts, allowing:
- People publishing reports to do so with the assurance that the information found in them can be correctly ingested and analyzed people receiving reports to measure them against a collection of commercial and logical principles to capture and prevent errors at their source
- People who use the knowledge in the manner that better fits their interests, such as by using multiple languages, alternate currencies, and their chosen design
- People accessing information should be assured that the information they are receiving conforms to a set of sophisticated pre-defined meanings.
Comprehensive meanings and precise data tags allow the preparation, confirmation, publication, sharing, and consumption of various types of market knowledge. The information in XBRL-formatted reports is interchangeable between different information systems in completely different organizations. This enables the sharing of company data through a reporting chain. XBRL is used for people who want to report information, exchange information, publish output information, and make straight through information processing.
XBRL filing can tag transactions, which can then be aggregated into XBRL files, in addition to facilitating the sharing of summarized business reports such as financial statements and risk and performance reports. These transactional capabilities allow the system-independent sharing and analysis of large amounts of supporting data and have the potential to turn to report supply chains.
Who makes use of it?
More than 600 member organizations from both the private and public sectors contribute to the multinational XBRL consortium. Over more than a decade, the norm has been established and refined to accommodate nearly any kind of possible reporting, whilst still offering a broad variety of functions that improve the accuracy and clarity of data, as well as their usability. XBRL is used in a variety of forms and for a variety of reasons, including by:
Authorities in charge of regulation
- Accounting services Singapore firms need a large volume of complex success and risk knowledge for the agencies they oversee.
- Securities regulators and stock exchanges must analyze the performance and compliance of listed entities and securities and ensure that this information is accessible for consumption and analysis by markets.
- Business registrars are responsible for receiving and making public a variety of corporate details about private and public entities, including annual financial statements.
- Companies must provide accounting statements and other compliance reports to tax officials for their corporate tax affairs to be processed and reviewed.
- Statistical and monetary policymakers need financial output data from a variety of organizations.
- Companies must send reports to one or more of the above regulators.
- Enterprises that include the correct movement of information within a diverse group.
- Supply chains must share knowledge to manage risk and measure operation.
- Service departments are reducing red tape and simplifying the procedure of companies reporting to the government by either harmonizing data definitions or consolidating reporting responsibilities or both.
- Service departments that are strengthening government reporting by standardizing the way consolidated or transactional reports are prepared, used within government agencies, and/or made public.
Providers of data
Specialist data vendors that use publicly available success and risk information to construct comparisons, scores, and other value-added information items for other industry players.
Analysts and speculators
Analysts must comprehend relative danger and efficiency.
Investors need to compare future investments and comprehend the underlying performance of current investments.
Accountants use XBRL to meet their clients’ monitoring needs and are often active in the development of XBRL reports.
What are some of the most significant XBRL features?
XBRL enables the development of reusable, authoritative meanings, known as taxonomies, that capture the meaning embedded in all reporting words used in a business report, as well as the relationships between all of the terms. Regulators, accounting services Singapore standards setters, federal departments, and other entities need to specifically identify material that has to be commented on providing taxonomies. XBRL does not restrict the type of knowledge that can be defined: it is a vocabulary that can be used and expanded if required.
Business rules that can be checked
XBRL enables the creation of market rules that limit what can be published. Business laws may be empirical, statistical, or a combination of the two. These corporate rules should be used to do the following:
- By being run by the preparer when the report is in the draft, you will prevent low-quality material from being submitted to a regulator or third party.
- By running at the stage where the information is received, you can prevent low-quality information from being approved by a regulator or a third party. Business records that do not comply with vital laws should be returned to the preparer for review and resubmission.
- Highlighting or flagging suspicious facts to allow for timely follow-up, correction, or interpretation
- Using the fundamental data presented, generate ratios, aggregations, and other types of value-added information.
Support in several languages
Concept descriptions can be prepared in as many languages as required using XBRL. Third-party definition translations may also be added. This indicates that it is possible to view a variety of records in a language other than the one in which they were prepared without any extra effort. Since it can dynamically open up reports to various audiences, the XBRL project makes extensive use of this feature.
For many businesses, XBRL filing can be a time-consuming and intimidating operation. WLP Group is an experienced accounting services Singapore firm that can proficiently and cost-effectively help you in the processing of financial statements in the XBRL format. If you’d like to hear more about our XBRL operation, please get in touch with us right away.