Revised XBRL Filing Requirements And The BizFin x Filing System. Training Seminar

Transcription

1 Revised XBRL Filing Requirements And The BizFin x Filing System Training Seminar

2 Agenda Why XBRL? ACRA XBRL Revamp Milestones Revised XBRL Filing Requirements Minimum Requirements List and Mapping Principles Validation Rules and Common Mistakes Available Support For Companies 2

3 What is XBRL? Standsfor extensiblebusinessreportinglanguage BasedonXML(eXtensibleMark-upLanguage) Fast becoming a global standard for the sharing of financial data Provides an identifying tag for each piece of financial information- works like a barcode Allowsinformationtobeeasilyextractedandanalyzed Using PDF financial statements vs using XBRL data 3

4 XBRL Global Movement Source: 4

5 What is XBRL? CURRENT ASSETS Assets Held for Sale 100,000 Construction in Progress, Current Other Financial Assets, Current Hedging Instruments, Current (Asset) 100,000 Inventories 100, , ,000 Current Tax Receivables 100,000 Trade and Other Receivables, Net, Current 100,000 Prepayments, Current 100,000 Cash and Cash Equivalents 100,000 Other Assets, Current 100,000 Current Assets Total 1,000,000

6 Business Analytics Enabled Through XBRL - Unlimited Possibilities Automatedandimmediateavailabilityofdataafterfiling Trendanalysisofindividualcompanyinformation Benchmarkingagainstpeersandindustrymedian 6

7 Business Analytics Enabled Through XBRL - Unlimited Possibilities Automated filtering of all public records Company Screener can filter all public records among 60,000 companies financial statements to find matches that meet preferred criteria N ABC Limited 2012 Construction D XYZ Private Limited 2012 Construction Source: Singapore Financials Direct by DP Bureau 7

8 Benefits of XBRL Who benefits from using XBRL? Company directors Financial analysts Investors Creditors Financial information companies Accountants Auditors Government agencies Academia 8

9 ACRA XBRL Implementation - The Next Phase 2007 Jan Apr 2012 May -Jun 2012 Jan Feb 2013 Mar Apr 2013 Launch of XBRL (full and partial filing options) o ACRA XBRL revamp commenced o Needs requirements study o Public consultation for revised filing requirements and taxonomy o Summary of response published innov2012 Focus groups testing for preparation tool: Accounting firms Companies Corporate secretarial firms Trainers Public consultation on usability of BizFin x preparation tool 9

10 ACRA XBRL Implementation - The Next Phase Jun 2013 Aug 2013 Nov o Revised XBRL filing requirements o Beta versionof new BizFin x preparation tool to allow preparers to familiarise themselves with the tool o Updated versionof prep tool o Updated versionof prep tool, including changes to address feedback received (e.g. function to convert excel embedded tables in word) odate for launch of online BizFin x portal and revised XBRL filing requirements will be announced once it is confirmed. At least two weeks advance notice will be given 10

11 ACRA XBRL Implementation - The Next Phase Increase the breadth and depth of XBRL data Consumers Preparers Facilitate the preparation and filing of XBRL data Collect what consumers of financial statements want for analysis Feedback obtained through earlier needs requirements study; and Elements to derive commonly used financial ratios Efforts required by preparers to providethedatainxbrl 11

12 Revised XBRL Filing Requirements Singapore incorporated companies which are either unlimited or limited by shares (unless exempted) will be required to file a full set of financial statements in XBRL according to a minimum requirement list within the ACRA Taxonomy 2013 Current filing option of partial XBRL (option B) will be removed For financial statements with periods ending on or after 30 April

13 Revised XBRL Filing Requirements Changed Type of Company Public / Private companies (limited/unlimited by shares), except those under (a) and (b) (a) Specific companies, i.e. commercial banks, merchant banks, registered insurers, finance companies regulated by MAS (b) Companies allowed by law to prepare accounts in accordance with accounting standards other than SFRS, SFRS for Small Entities and IFRS Insolvent exempt private companies (EPCs) Solvent EPCs Companies limited by guarantee Foreign companies and their local branches Filing of Financial Statements Full set of XBRL financial statements Financial statements highlights (FSH)(XBRL) + PDF copy of financial statements FSH (XBRL) + PDF copy of financial statements Option of: - Full set of XBRL financial statements; or -FSH(XBRL) + PDF copy of financial statements Exempted from filing financial statements, but are encouraged to file with following options: -Full set of XBRL financial statements or -FSH(XBRL) PDF copy of financial statements (XBRL filing not required) PDF copy of financial statements (XBRL filing not required) 13

14 Revised XBRL Filing Requirements Around 60,000 companies file in XBRL currently Changes for companies against FS Manager XBRL filing Submit information using relevant fields in taxonomy instead of using user-defined fields Submit information within up to 11 disclosure notes, where applicable Capturing more in-depth information for consumer of financial information Submit a full set of financial statements in textual format, instead of PDF format 14

15 Revised XBRL Filing Requirements Minimum requirement list states the information that mustbefiledinxbrliftheinformationisavailableinthe AGM financial statements Ifyouhaveit,youwillneedtoprovideit Ifyouhaveextra,youneednotprovideit Minimumrequirementlist Textblock ForfullsetofAGMfinancialstatements Detailed information For certain sections indicated 15

16 Minimum Requirement List Information Required Minimum Requirement List Text block information An entire set of financial statements submitted using a single text block element Detailed information (Statutory reports) Statement by directors Independent auditors report Detailed information (Primary financial statements) Statement of financial position (note 1) Income statement (note 1) Statement of cash flows (note 2) Detailed information (Disclosure notes) Corporate and general information Trade and other receivables (note 1)(note 3) Trade and other payables (note 1)(note 3) Provisions (note 1)(note 3) Share capital (note1)(note 4) Revenue (note 1) Government grants (note 1) Employee benefits expense (note 2) Operating segments (note 1) Property, plant and equipment (note 1)(note 4) Selected income and expense (note 2) Note 1: Preparers are required to submit the complete information or breakdown in accordance to the Minimum Requirement List for the section. Concepts for others may be available to facilitate the disclosure of full information or breakdown. Note 2: Only selected elements are included in the Minimum Requirement List. Hence the completed elements do not have to sum up. Note 3: Preparers are not required to provide the breakdown of the trade and other receivables, trade and other payables and provisions according to different classes of parties. Note 4: In contrast to note 3, preparers are required to provide the breakdown into different classes for property, plant and equipment, and share capital. (extracted from

17 Minimum Requirement List - Text Block An entire set of AGM financial statements Directors report Statement by directors Auditors report Statement of financial position; Statement of profit or loss and other comprehensive income; Statement of changes in equity; Statement of cash flows; All disclosure notes 17

18 Minimum Requirement List Detailed Information Examples 18

19 Minimum Requirement List Detailed Information Examples Non-applicable fields to be left blank 19

20 Minimum Requirement List Detailed Information Examples Footnote for Revenue from rendering of services: Revenue from rendering of services comprise trustee fees of $929,443 and commission income of $2,111,

21 Minimum Requirement List Detailed Information Examples Trustee activities Investment activities Total 21

22 RULE 1: A line item within the AGM financial statements MUST be mapped to the relevant concept within the taxonomy when they are equivalent in accounting terms. 22

23 RULE 2: Line items within the AGM financial statements that represented sub-components of relevant concepts within taxonomy MUST be aggregated together. A footnote SHALL also be created to explain the aggregation that was performed. 23

24 RULE 3: When a line item within the AGM financial statements represents an aggregation of several concepts in the taxonomy, the breakdown MUST be disclosed as required. Where it is impractical or the breakdown is not disclosed within the AGM financial statements, the preparer SHALL map theentireamounttooneoftheconceptsthatmadeuptothelineitembasedonthebest-fitprinciple. 24

25 RULE 4: Line item that does not have any linkages with any concepts within the taxonomy SHALL be classified under others category in the respective sections of the financial statements, when it is available. A footnote SHALL also be created to explain the breakdown of what has been classified under others. 25

26 Application of Rule 4 Others items will be available for all templates except for Statement of Cash Flows Selected income/expenses Employee benefit expenses If others items are unavailable, no need to provide unlinked line items. 26

27 Validation Process 27

28 Validation rules Genuine errors Please rectify such errors before filing If XBRL data is correct, please seek exemption from specific business rules / XBRL filing Possible errors Please rectify if areas highlighted contains error If XBRL data is correct, you may ignore the possible error without changes required For complete list of business rules, please refer to rces.htm (Appendix B List of business rules) 28

29 Validation rules Examples Mandatory / Derived mandatory rules 29

30 Validation rules Examples Rules to ensure correct submission of dates 30

31 Validation rules Examples Rules to ensure disclosure of full set of financial statements Ensure that the full set of financial statements are submitted in text block 31

32 Validation rules Examples Rules to check against information from prior period filing Check whether prior period values are provided correctly within XBRL file. If current values in prior XBRL filing is incorrect, please file NOE (for typographical/clerical errors. 32

33 Validation rules Examples General checks across XBRL file Misc_040 Ensure that the sum of child fields are the same as total. (Eg. The difference between gross carrying amount of PPE and accumulated depreciation = Net carrying amount of PPE) 33

34 Validation rules Examples General checks across XBRL file 34

35 Exemptions Depending on the FS of the company, exemption may be granted on a case by case basis File full XBRL with exemption from specific business rules (E.g. requirements for comparative periods) File FSH instead of full XBRL File FS in PDF Application for exemption is available through the BizFin x portal 35

36 Common mistakes in XBRL filing Common mistakes Rectification Using the incorrect level of rounding / presentation currency as compared to AGM accounts Incorrect selection of presentation format Incorrect mapping of data Not updating dynamic company information (eg. Signing auditor / directors) Non submission of information within minimum requirement list Use the correct level of rounding / presentation currency Select the correct format. Please refer to FRS 1, FRS 7 and preparation tool for samples Map data using taxonomy elements that are relevant. Refrain from using others items unless there is no related taxonomy element Preparers using prior period XBRL file as a reference should ensure data are updated Familiarise yourself with the minimum requirement list templates. ( ces.htm) Check to ensure that information within required disclosure notes are provided in templates. 36

37 Support For Companies More Time For Filing BizFin x Preparation Tool Training & Help Resources 37

38 Preparation Tool FreeofflinetooltohelpcompaniesprepareXBRLFS Increasedflexibilitybyallowingofflinepreparation Auto-taggingfunction Ability to learn the fields that the company has used within their financial statements making preparation easier in the following financial year Draganddropfunction Ability to populate values automatically with this function reducing time for manual data entry 38

39 JuneandAugustversions Preparation Tool Provide ample time for user to familiarize with filing requirements andusingthetool Addresses issues highlighted from focus groups and public consultation Novemberversion Contains more enhancements (e.g. making review copy more userfriendly) This latest version of the preparation tool must be used to prepare the XBRL files for filing purposes, and it replaces earlier versions released in June and August 2013 All Excel / XBRL.zip files prepared using earlier versions of the preparation tool can be opened and edited in the latest version of thepreparationtool,andthisshouldnotresultinanylossofdata 39

40 Training Events Freetrainingseminars Held throughout the first year of revised XBRL filing regime, beginning July 2013 Cover filing requirements and how to use the BizFin x preparation tool to prepare FS Subsidized detailed training courses with training partners Provide hands-on practice with BizFin x preparation tool 50%oftrainingfeesubsidizedbyACRA Regular courses held monthly, available from July

41 More Time For Filing Current Obligations Non-listed companies are required to: To hold AGM every calendar year, interval not more than 15 months To present accounts not more than 6 months after year-end during AGM 41

42 More Time For Filing Assistance from ACRA Extension Of Time No application fee for companies applying for 30-day extension for both obligations. Applicable only: For non-listed companies filing full XBRL During the first year of implementation Where the company has applied for and has been granted EOT under s175 and s201 of Companies Act, no waiver of late penalty under s197 will be available 42

43 More Time For Filing Assistance from ACRA Penalty Waiver If company fulfills the two obligations, penalties will be waived if AR is filed not more than 30 days after prescribed period. Illustrative example: Company with financial year-end of Dec 2012 ToholdAGMbyJune2013andfileARbyJuly2013 ARfiledonlyinAugust

44 More Time For Filing ComplianceRatings: EOT applied: if company has fulfilled all of its obligations under s197, and s175 and s201 of the Companies Act within their extended dates. EOTnotapplied: No penalty imposed for late filing, with compliance rating as if the company has breached the provisions under s175, s197 or s201. Reason being: Compliance rating reflects compliance with the legislation 44

45 Transition from FS Manager to BizFin x Option A (Full XBRL) where companies have used FS Manager to directly prepare AGM FS (i.e. no separate document in word / excel) Request from ACRA for Option A FS in MS Word format (converted from the XBRL FS), which may then be updated to be used as source document in BizFin x prep tool request to: ACRA_xbrl_general@acra.gov.sg, with the following: Subject header of Request for XBRL financial statements Option A filed with ACRA in Word format Scanned copy of request letter using company letterhead & to be signed off by company director, containing following details: Company Name Company Registration Number Financial Year End of the relevant Option A financial statements filed Copy of relevant Option A FS (XBRL format) 45

46 Other Help Resources Hotline for companies and preparers on XBRL-related enquiry and technical issues Preparers guide ACRA Taxonomy templates Business rules List of synonyms User guide/quick guide for BizFin x preparation tool / Video Guide (key functions of prep tool) FAQs 46

47 Experience The Value Of XBRL Free data analysis for companies filing Full XBRL or FSH Available to Company officers (directors and company secretary) One-time usage every year, upon filing of Annual Return with XBRL Printed (PDF format) and online (interactive graphs) reports available 47

48 Experience The Value Of XBRL Financial ratios available for analysis: Revenue growth, Net profit margin, Return on assets, Total asset turnover Trend analysis and industry comparison 48

49 Q & A 49

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