Evaluation of Malaysian Business Reporting System - MBRS

In compliance with the laws that prevail in Malaysia, all companies, both public and private companies must register themselves with Suruhanjaya Syarikat Malaysia (SSM), which is the Malaysian regulator, also known as the Companies Commission of Malaysia. The companies are required to submit their financial information to SSM every year.

With the financial information submitted, the regulator not just enhances the supply of corporate information, but also creates a channel wherein the public can analyse the information.

Malaysian Business Reporting System (MBRS)

Malaysian Business Reporting System (MBRS) has been incorporated by Companies Commission of Malaysia (SSM). It is a submission platform for companies incorporated in Malaysia, for submission of financial statements and exemption application, as required under Companies Act 2016.  It is based upon eXtensible Business Reporting Language (XBRL) platform.

Each of the companies registered in must also file their annual returns, within 30 days of the anniversary of its incorporation date. Annual Return gives an overview of a company’s directors, addresses and activities.

The three main components of MBRS submission platform are:-

1.       The XBRL taxonomy

2.       mTool or the preparation tool

3.       mPortal

Businesses and other stakeholders, such as banks, investors and regulators, all benefit from MBRS. This is owing to the enhanced usability of financial statement information as facilitated by XBRL, which enables the stakeholders make sound economic decisions and design policies.

XBRL is a standard of reporting which many advanced countries already use for reporting financial information. Some of the prevalent regulators are:-

1.       Security and Exchange commission (SEC), USA

2.       Her Majesty Revenue and Customs (HMRC), UK

3.       Accounting and Corporate Regulatory Authority (ACRA), Singapore

4.       Australian Securities & Investments Commission (ASIC), Australia

The aforementioned regulators have mandated all companies that are listed publicly (or even private companies in some countries) to essentially use XBRL for reporting their financial information. In Malaysia, SSM is among the recent adopters of XBRL.

In Malaysia, the voluntary reporting phase by using XBRL first started in October 2018. The mandate was designated to be rolled out in phases, and is currently set for companies with financial year/period ended 31 December 2018 at the moment (pending for SSM further announcement).

The key differences in current submissions and submissions via MBRS platform is that the documents are submitted online via MBRS platform than submitting hardcopy of financial statements over the counter. Similarly, the MBRS platform allows companies to make annual return, exemption applications and financial statements via mTool. The need for paper based documentation is hence done away with.

The similarity of MBRS platform with present submission format is that the submissions need to be made by company secretaries.

Implementation of MBRS does pose some challenges for businesses. Let’s take a look at them.

1.       The preparation tool is made based on IFRS taxonomy (localized for MFRS/MPERS and Companies Act 2016 requirements) and a vast majority of information for MBRS financial statements is derived from audited financial statements. The audited financial statements should contain necessary information and disclosure items for filing up the MBRS report.

This requires a preparer to be familiar with accounting and have sufficient technical knowledge of accounting. The challenge is also the first adoption of MBRS report require comparative figures to be populated and businesses may have difficulties in meeting the filing deadline.

2.       A sound technical knowledge of financial reporting is also essential for tagging the elements in MBRS reporting, which are over 8000 in reporting fields (in MFRS/MPERS and Companies Act 2016)..

The factors may call for outsourcing the work and company directors and SSM alike would be very particular about the assurance that the financial statements have been tagged right.

Acc Plus comes across as a preferred choice for filing financial statements, exemption returns and annual statements in compliance with MBRS. We have a well established team that has a good track record in financial reporting and regulatory compliance for over 20 years. Our team of accountants is well versed in Malaysia Accounting Standards and XBRL.

How to Select the Malaysian Business Reporting System

How to Select the Malaysian Business Reporting System

If you are running Business Company in the part of Malaysia, it is requested to register with Suruhanjaya Syarikat and Malaysian Regulator. Therefore the companies must submit the financial data to the part of the SSM at least once a year. The main role of these systems is to promote and deliver corporate information. Then it can develop a major facility whereby the people can find out and analyses the corporate information. MBRS is a submission of the platform which is based on the extensible business reporting languages. It allows for the major submission such as the Annual return, a financial statement as well as the report, exemption application related to the AR and FS. A major component of MBRS:

SSM Taxonomy:

It is a dictionary of the nonfinancial and financial elements of the EA, FS, and AR which embedded in the part of the MBRS preparation Tool.

MBRS preparation Tool:

Malaysian Business Reporting System tools are new and update preparation tools for Microsoft excel which let the firm to make the right document online as well as offline. Then it can generate AR and EX in the format of the XBRL.

•    Build with the SSM xT browser

•    MS excel add over the application

•    Support both online and offline features

•    A template is driven and form

•    Data validation checks

•    Applicable to generate major XBRL file such as the FS, EA, AR.

MBRS portal:

It is a direct submission platform to lodge of EA to SSM and Fs, AR and this helps improve major support for the financial.

•   Special features of the M portal:

•   Allow going to the website login

•   Applicable to download a new version

•  Email confirmation and other updated

•  Online payment facility

•  Digital signature

•  Report generation support

•   Online payment support

MBR requirement:

It introduces the various types of filling based on the need below, the Company ACT 2016. Hope it provides special support and solution for the customer to move right support for the business people.

Financial statement:

It filed with the major statement for reporting below the accounting standard as well as the company’s act section.

Important financial indicator:

It has basic financial concepts which found for financial reporting when the filer is not to file complete FS filling in part of the XBRL.

Exemption application:

It is applicable for the end to end registered person to file for the respective exemption over the compliances with the presence of SSM.

Annual return:

It is requested to file all annual returns, according to the Companies Act 2016.

Reason for the Adoption of the XBRL:

•    It can reduce the time and cost of the collect the financial as well as the non-financial data and it can save over the data entry efforts as well as the conversion of the data according to the less human intervention.

•     It can find out the report for the taking right decision for the stakeholder.

•   XBRL lets to deliver the SSM as well as the other regulator with the detailed data and it can aggregate and also supports to investigate the major efforts and other compliance.

Hope the people who are running the major business, they are suggested to go with the Malaysian Business Reporting System and provide the best result for them and it assures to move the best support to make more income in a very short time. Though, these systems build with the various tools that let to provide real comfort to manage the financial support and other solution.