In Malaysia, all companies are required to register themselves with Suruhanjaya Syarikat Malaysia (SSM), and these companies need to lodge their financial statements to SMM once every year. As of not long ago, companies are required to lodge financial statements to SMM physically over the counter at SSM Office. However, after November 2018, SSM to improve their finance related task they actualize Malaysian Business Reporting System (MBRS) that dependent on XBRL language. This system would help SSM to analyze the reported information, and make financial information easily available.
What is XBRL and its benefits?
XBRL stands for eXtensible Business Reporting Language and managed by a global, not for profit consortium, XBRL International. This business language is used around the world, in more than 50 countries. It is one of the accurate and effective tools of the digital version and its core capabilities to create an unambiguous, accurate and reusable version of the financial statements. The direct beneficiaries of this standard are the investors and regulators. The practice in other jurisdiction with respect to XBRL is Securities and Exchanging Commission in the USA, Her Majesty’s Revenue and including the Securities and Exchanging Commission, Accounting and Authority in Singapore, Companies and Intellectual Property Commission in South Africa have registered and other public listed companies use XBRL technology to report the financial statements. MBRS is adopted from IFRS taxonomy.
XBRL then helps to reduce the inconsistency in data formatting. It provides highly accurate data as the data can be calculated and verified. This is an open platform which can convert data into multiple languages and increase the readability and integrity of the data.
What is MBRS?
The Malaysia Business Reporting System is a submission platform inaugurated by the Companies Commission of Malaysia ( SSM) for submitting a financial statement in digital form to reduce the ambiguity and error that often generated manually. This submission platform is based on the language known as XBRL (eXtensible Business Reporting Language).
This system is based on the three key features that are listed below:
- The XBRL Taxonomy: Taxonomy is the practice and science of classification. The application of taxonomy is business reporting is XBRL (eXtensible Business Reporting Language). XBRL is a standard way to exchange and exchange business and accounting information between systems. The taxonomy is primarily based on Malaysian Financial Reporting Standards (MFRS) and Malaysian Private Entities Reporting Standards (MPERS), and localized with local requirements of Companies Act 2016
- Preparation Tool: This tool helps people to prepare and generate MBRS report from the financial statements
- Portal ( which is also known as M portal), it is used for submission of various MBRS filing – including annual return, financial statements and key financial indicators
Final say about Malaysian Business Reporting System
In today’s technology-based world, still, there are many organizations rely on a manual process to prepare, analysis and submit the financial report, which is not only time consuming but also contain errors. This platform has introduced for the regulator, companies, government, analysts and investors and data providers and accounts. In Malaysia, reporting XBRL format is mandate because it gives great and exclusive facility to the companies, shareholders, investors, governments and other agencies for quick analysis and preparing financial data. So, if you want to create an annual return and don’t know how to run this platform you can take our help.