The Future of Financial Reporting: Trends and Innovations in MBRS and XBRL

MBRS, or the Malaysian Business Reporting System, is an XBRL-based submission platform launched by the Companies Commission of Malaysia (SSM). It facilitates the submission of various documents, including annual returns (AR), financial statements & reports (FS), and exemption applications concerning AR and FS.

XBRL is a universal standard for digitally transmitting business information. It simplifies the exchange of financial data between various software and platforms, streamlining the analysis and comparison process.

 The latest Trends and Innovations in MBRS and XBRL include: 

• The SSM has made it mandatory to utilise the MBRS system to submit annual returns and financial statements since March 8, 2021. This strategic move aims to streamline the information exchange process within the private sector, fostering efficiency and transparency.

• Several countries, including the USA, UK, Singapore, South Africa, and India, have already taken the significant step of mandating the submission of annual financial statements in the XBRL format. Malaysia is anticipated to follow suit once the situation stabilises following the Covid-19 pandemic.

• XBRL offers many advantages throughout all stages of business reporting and analysis. These include robust security measures, automation of repetitive tasks, resulting in cost savings, heightened data reliability, improved accuracy, enhanced quality of financial information, and, ultimately, more effective decision-making.

XBRL isn’t about replacing human involvement but rather augmenting it. Automating data tagging and other routine tasks allows human resources to be redirected towards core operational activities. XBRL also contributes to data granularity and plays a significant role in fraud detection by enabling regulatory authorities to implement preventive measures effectively.

Research in the field of XBRL has identified six main clusters or areas of focus:

• Financial Reporting: This cluster delves into using XBRL in financial reporting, exploring how it can improve the efficiency of this critical aspect of business.

• Development of XBRL: It encompasses research on the evolution and development of XBRL, tracking its growth and adaptation over time.

• Decision Making: Research in this cluster examines how adopting XBRL impacts organisational decision-making processes, especially regarding resource allocation and strategy development.

• XBRL Adoption: This area focuses on understanding the factors that influence the adoption of XBRL in various sectors and regions.

• Corporate Governance and Disclosure: Research in this cluster centres around how XBRL affects corporate governance practices and disclosure requirements, emphasising transparency and accountability.

• Financial Analytics: This segment explores the role of XBRL in enhancing financial analytics, data-driven insights, and performance evaluation.

DataTracks: The Future of Financial Reporting 

XBRL continues to evolve and expand its influence in business reporting and analysis. If you are looking for a reliable company that can assist with your accurate and timely reporting, then we at DataTracks are the right place for you. To streamline your reporting, get in touch with our experts at +60 392126125 or email us at enquiry@datatarcks.my