Accounting and Corporate Regulatory Authority (ACRA) Presentation CRF 2009


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Presentation by Accounting and Corporate Regulatory Authority (ACRA) - Singapore

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  • Accounting and Corporate Regulatory Authority (ACRA) Presentation CRF 2009

    1. 1. XBRL Adoption in Singapore: One Year On
    2. 2. Agenda <ul><li>What is XBRL? </li></ul><ul><li>Why XBRL for ACRA? </li></ul><ul><li>ACRA Taxonomy </li></ul><ul><li>Filing Requirement in XBRL </li></ul><ul><li>Current Initiatives with XBRL </li></ul><ul><li>Learning Points on Implementing XBRL </li></ul>
    3. 3. What is XBRL? <ul><li>XBRL </li></ul><ul><li>Acronym for “eXtensible Business Reporting Language”. </li></ul><ul><li>An open-standard reporting language based on XML (eXtensible Mark-up Language) used for reporting of financial information. </li></ul><ul><li>Developed by XBRL International Inc., a non-profit consortium. </li></ul><ul><li>Reporting Formats </li></ul><ul><li>Web formats, text files, spreadsheets, PDF; Non-interchangeable and incompatible. </li></ul><ul><li>Prevents effective and efficient sharing of financial data across applications and computing platforms. </li></ul><ul><li>XBRL </li></ul><ul><li>Items of financial data are “tagged” with identifying s tandardised descriptions. </li></ul><ul><li>Allows exchange of financial data between differing information systems (interoperability). </li></ul><ul><li>Allows information to be easily extracted and analysed. </li></ul>
    4. 4. What is XBRL? Human Readable v XBRL <acra:ByLiquidityOrCurrentNon-CurrentClassification contextRef=&quot;Company_Current_AsOf&quot;>By Current/Non-Current Classification</acra:ByLiquidityOrCurrentNon-CurrentClassification> <acra:PropertyPlantEquipmentTotal contextRef=&quot;Company_Current_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>731000</acra:PropertyPlantEquipmentTotal> <acra:PropertyPlantEquipmentTotal contextRef=&quot;Company_Prior_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>221000</acra:PropertyPlantEquipmentTotal> <acra:PropertyPlantEquipmentTotal contextRef=&quot;Consolidated_Current_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>12046000</acra:PropertyPlantEquipmentTotal> <acra:PropertyPlantEquipmentTotal contextRef=&quot;Consolidated_Prior_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>22733000</acra:PropertyPlantEquipmentTotal> <acra:IntangibleAssetsTotal contextRef=&quot;Company_Current_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>0</acra:IntangibleAssetsTotal> <acra:IntangibleAssetsTotal contextRef=&quot;Company_Prior_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>0</acra:IntangibleAssetsTotal> <acra:IntangibleAssetsTotal contextRef=&quot;Consolidated_Current_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>19820000</acra:IntangibleAssetsTotal> <acra:IntangibleAssetsTotal contextRef=&quot;Consolidated_Prior_AsOf&quot; decimals=&quot;-3&quot; unitRef=&quot;monetary_unit&quot;>938000</acra:IntangibleAssetsTotal>
    5. 5. What is XBRL? Global Developments <ul><li>Extracted from 18 th XBRL International Conference presentation on Securities Filing in XBRL Format-Voluntary Filing Programs Around the World </li></ul>
    6. 6. Why XBRL for ACRA? <ul><li>Before </li></ul><ul><li>Portable Document Format or PDF of financial statements of companies filed with ACRA with the Annual Returns </li></ul><ul><li>Companies also required to fill up e-form for Financial Highlights (e.g. profit and loss figures, turnover, etc) separately; human errors </li></ul><ul><li>PDF of financial statements purchased by Information Resellers and public for credit and financial analysis, etc </li></ul><ul><li>After </li></ul><ul><li>With XBRL, retrieval made more efficient; financial highlights extracted from XBRL financial statements </li></ul><ul><li>Data integrity and accuracy improves with validation checks by FS Manager </li></ul><ul><li>Smaller document size makes transferability by FTP possible for one stop filing service- Tax and Statistics Authorities </li></ul>
    7. 7. General Overview- Financial Reporting Process Financial Statements (FS) Complies with the Accounting Standards and gives a true & fair view Directors Auditor Audits the financial statements Directors- Responsible for the preparation and filing of the financial statements FS Prepared and Filed Using FS Manager Shareholders Other Consumers & Users of FS Promotes access to financial information Information flow
    8. 8. XBRL-Enabled Financial Information Marketplace Accounting Systems c Collection of XBRL Financial Information Public User ACRA Prepare FS XBRL Engine Storage Submit Data Interface Module File Upload FS FS Manager Bizhub Feedback and data feed Government users Marketplace administrator Business community users Feedback and data exchange Distribution of XBRL Financial Information
    9. 9. Why XBRL for ACRA? <ul><li>Adopting XBRL aligned with ACRA’s overall strategic direction of enabling: </li></ul><ul><ul><li>a pro-enterprise financial reporting environment for businesses in Singapore; and </li></ul></ul><ul><ul><li>a value enhancing financial information flow to both local and international business community. </li></ul></ul><ul><li>Strategic goals to be achieved with XBRL adoption: </li></ul><ul><ul><li>XBRL will benefit the business community - Improving access to data of Singapore companies </li></ul></ul><ul><ul><li>Unlocking new value from financial information filed with ACRA </li></ul></ul><ul><ul><li>Facilitating harmonised corporate financial reporting </li></ul></ul><ul><ul><li>Strengthening our regulatory vigilance - A trusted business hub </li></ul></ul><ul><li>An article by CPA Australia in its Nov 2008 “INTHEBLACK” publication examines the XBRL adoption in Singapore: </li></ul>
    10. 10. ACRA Taxonomy <ul><li>What is taxonomy? </li></ul><ul><li>Taxonomy is similar to a “dictionary” in XBRL context </li></ul><ul><li>ACRA Taxonomy developed by team led by a member of the IASCF XBRL Quality Review Team with inputs from the various professional bodies and accounting firms in Singapore </li></ul><ul><li>What a taxonomy would look like: </li></ul>Mandatory Data Type Period Type Line item Documentation Income Statement By function Reference FRS 1 Yes Monetary Duration + Revenue User-described Items + Cost of Sales Yes Monetary Duration = Gross Profit `Gross Profit’= `Revenue’ + `Costs of Sales’ (String) Other items of Income
    11. 11. How it is translated into an Online Spreadsheet <ul><li>Captures core data and user-described data </li></ul>
    12. 12. ACRA Taxonomy <ul><li>Designed to comply with the Singapore Financial Reporting Standards (which is closely aligned with the International Financial Reporting Standards) and the Singapore Companies Act </li></ul><ul><li>Captures 464 data elements and 39 tuples (i.e. user-described data fields) </li></ul><ul><li>Designed based on the premise that: </li></ul><ul><ul><li>no company should extend the taxonomy; and </li></ul></ul><ul><ul><li>industry specific data should be in the single taxonomy if important </li></ul></ul><ul><li>Self-extending taxonomy concept that allows for: </li></ul><ul><ul><li>core data that is common to most entities and of interest to most users to be captured specifically; and </li></ul></ul><ul><ul><li>other data to be captured under a flexible classification that will allow for efficient manual extraction </li></ul></ul><ul><li>The self-extending taxonomy concept utilises a simple user-described tuple structure to capture in a single element the exact description used by the company in its financial statements as well as that specific value associated with it </li></ul><ul><li>A PDF copy of the ACRA Taxonomy is available under the “Illustrative Financial Statements” section of: </li></ul>
    13. 13. FS Manager Online tool
    14. 14.
    15. 15. Using FS Manager to Prepare FS <ul><li>FS Manager is designed to be used as a Financial Statement Preparation Tools </li></ul>14 © Copyright Ecquaria Technologies Pte Ltd. All Rights Reserved. ACRA FS Manager Importing from accounting systems XBRL Data Entry XBRL Save as XBRL PDF Save as PDF
    16. 16. Filing Requirement in XBRL <ul><li>Scope of XBRL Filing of Financial Statements: </li></ul><ul><li>Unlimited and Limited By Shares Companies </li></ul><ul><ul><li>Excluded Categories </li></ul></ul><ul><ul><ul><li>Banks, insurance companies and finance companies whose activities are regulated by the Monetary Authority of Singapore </li></ul></ul></ul><ul><ul><ul><li>Companies using accounting standards other than Singapore Financial Reporting Standards or International Financial Reporting Standards </li></ul></ul></ul>
    17. 17. Filing Requirement in XBRL <ul><ul><li>Financial Periods Affected </li></ul></ul><ul><ul><ul><li>FS Manager launched in May 2007 for use by preparers </li></ul></ul></ul><ul><ul><ul><li>Filing of Annual Return on or after 1 November 2007 and the financial period concerned ends on or after 30 April 2007 </li></ul></ul></ul><ul><ul><li>Giving More Time if filing in full XBRL </li></ul></ul><ul><ul><ul><li>1 Month waiver of penalties for Late Annual General Meeting (AGM) or Late Filing </li></ul></ul></ul><ul><ul><ul><li>Not applicable to public listed companies </li></ul></ul></ul><ul><ul><li>ACRA Practice Directions 2 and 5 of 2007 and 3 of 2008 issued and available at: </li></ul></ul>
    18. 18. <ul><li>Two Filing Options </li></ul><ul><li>Option A: Full XBRL </li></ul><ul><ul><li>FS Manager is used to prepare the full set of financial statements for tabling at the AGM; or </li></ul></ul><ul><ul><li>Optional to submit a PDF copy of the full set of financial statements as tabled at the AGM </li></ul></ul><ul><li>Option B: Partial XBRL </li></ul><ul><ul><li>Submission of Balance Sheet, Income Statement and Mandatory Information in XBRL; and </li></ul></ul><ul><ul><li>A PDF copy of the full set of financial statements as tabled at the AGM </li></ul></ul>Filing Requirement in XBRL
    19. 19. Filing Statistics (1 st Year of XBRL) * Partial XBRL pertains to a minimum of the balance sheet, income statement and mandatory information. Public Company (Listed) Public Company (Unlisted) Private Company Exempt Private Company Total Period from 1 Nov 2007 to 31 Oct 2008 (1 Year) Full XBRL 65 99 6,114 3,653 9,931 Partial XBRL* 445 483 19,003 9,260 29,191 % Full XBRL 13% 17% 24% 28% 25% Period from 1 Nov 2008 to 28 Feb 2009 (4 Months) Full XBRL 22 25 1,726 1,282 3,055 Partial XBRL* 78 79 4,767 3,326 8,250 % Full XBRL 22% 24% 27% 28% 27%
    20. 20. <ul><li>From the data collection perspective </li></ul><ul><li>Revision of current ACRA Taxonomy in the 2 nd quarter of 2009 for latest accounting standards changes - Public consultation released on 13 October 2008 (Details: </li></ul><ul><li>Getting more software vendors onboard and more XBRL tools available in the local market to enable an “integrated” approach to prepare XBRL financial statements and other regulatory returns </li></ul><ul><li>Future maintenance and enhancements to FS Manager, examination of an offline FS Manager and exploring use of XBRL data for analytical and benchmarking purposes </li></ul><ul><li>Ongoing independent review of 1st set of corporate financial statements in XBRL </li></ul>Current Initiatives with XBRL
    21. 21. Current Initiatives with XBRL <ul><li>From the data distribution perspective </li></ul><ul><li>Seamless flow of information from ACRA to the Inland Revenue Authority of Singapore (IRAS) for the benefit of businesses: </li></ul><ul><ul><li>Companies filing their financial statements in Full XBRL with ACRA need not file the same copy with IRAS for their annual income tax returns </li></ul></ul><ul><li>XBRL information are made available to IRAS, the Department of Statistics and other interested agencies that are able to put the information to better use or to provide additional services to businesses </li></ul><ul><li>Leveraging on XBRL information for a more effective financial surveillance programme and facilitates various policy reviews </li></ul><ul><li>Adoption of XBRL facilitates the immediate extraction of financial highlights (i.e. salient financial information) instead of manual keying in by companies into the Annual Return Form previously done </li></ul><ul><ul><li>More efficient filing process for businesses, increases data accuracy as there are inbuilt validation rules in the FS Manager and benefits consumers of financial highlights information </li></ul></ul>
    22. 22. Learning Points on Implementing XBRL <ul><li>Active feedback from all affected stakeholders is critical </li></ul><ul><li>Importance of giving ample time for change </li></ul><ul><li>Clear communication of requirements to stakeholders </li></ul><ul><li>Involve the professional bodies, accounting firms and service providers early </li></ul><ul><li>Provision of adequate help resources (i.e. XBRL helpdesk, FAQ etc.) </li></ul><ul><li>Extensive information should be provided online </li></ul><ul><li>Continuous testing and re-testing </li></ul>
    23. 23. Our Vision - Harmonised Corporate Financial Reporting to the Government Other Government agencies Regulatory Forms (Based on a Harmonised Singapore Taxonomy) One-stop Filing Portal Public users of business information Businesses Companies (with assistance from their service providers) prepare and file their regulatory forms in a harmonised taxonomy in an open standard data format at only one location. Government agencies and the public refer to the one-stop filing portal for their regulatory information needs in one harmonised and open standard data format
    24. 24. Thank You Further details available at: