XBRL (eXtensible Business Reporting Language) is an XML-based programming language tailored for automating business information needs. It simplifies and enhances the analysis and exchange of corporate financial data, enabling automatic extraction and processing of information within XBRL systems.

The Companies Commission of Malaysia (abbreviated as SSM in the Malay language) has officially launched its XBRL initiative financial elements that include

1. Statement of Comprehensive Income/Income Statement;

2. Statement of Financial Position /Balance Sheet;

3. Statement of Changes in Equity;

4. Cash Flow Statement;

5. Notes to the financial statements; and

6. Audit statements.

The aim of this effort is to establish a standard for consistent reporting of financial and non-financial data by registered companies. This adoption will furnish SSM, regulators, and businesses with comprehensive data that can be compiled and shared with stakeholders, offering industry analysis for benchmarking purposes.

Uses and Applications of XBRL

Information cost reduction, flow acceleration, as well as enhancement in usefulness, are the primary goals of XBRL. XBRL offers greater flexibility to investment and credit professionals working with XML-enabled applications, financial data warehouses, and analytical tools.

1. Enhanced Efficiency

With the implementation of XBRL, information analysis can be done without the process of re-entry of information and investors can compare different companies based on commonly accepted data formats. Apart from this, regulators can define specific taxonomies [that describe information] and use standard XML and Internet technologies to receive and process that information.

2. Reduced Cost

The automation of composition and processing of reports to different stakeholders will minimize costs significantly by cutting time and labor spent manually entering and rechecking information. The XBRL system can help in analysing, selecting, and processing the data for re-use. Therefore, human effort can switch to more value-added aspects of analysis, review, reporting and decision-making. As such, an organisation can expect a cost reduction with the dramatically improved speed.

3. Data validation and Error Detection

On top of that, data validation and error detection are the other advantages of XBRL. XBRL provides efficient, validated transmission of information between Web services. Error detection (which is built into the XBRL specification) occurs at the source of the data, rather than at the receiving party. Therefore, the data’s accuracy and origin are traceable to one absolute point within the information chain.

Creating a precise and compliant XBRL report demands significant time, effort, and expertise. Many companies struggle with efficient XBRL financial reporting as a result. Low TH & Co, a prominent service provider, offers reliable solutions for XBRL filing. Our experienced team is well-equipped to deliver accurate and updated XBRL compliance reports while keeping you informed about new taxonomy changes and filing regulations.

Contact us today if you need XBRL filing services.