Malaysian Business Reporting System (MBRS) is a digital platform introduced by the Companies Commission of Malaysia (Suruhanjaya Syarikat Malaysia or SSM) for the submission of various corporate and financial information by companies. The MBRS aims to streamline and modernize the reporting process, making it more efficient and transparent. 

The Malaysian Business Reporting System (MBRS) is closely associated with eXtensible Business Reporting Language (XBRL). XBRL is a standardized language for the electronic communication of business and financial data. It allows data to be tagged in a machine-readable format, making it easier for both humans and computers to analyse, process, and exchange financial information.

Components of MBRS

SSM Taxonomy (SSMxT)

A dictionary of financial and non-financial reporting element of Annual Return (AR), Financial Statements (FS) and Exempt Applications (EA) embedded in the MBRS Preparation Tool (mTool).

MBRS Preparation Tool (mTool)

A preparation tool that allows companies to prepare and generate AR, FS and EA in XBRL format.

MBRS Portal (mPortal)

A submission platform to lodge XBRL file for AR, FS and EA to SSM.

Company incorporated in Malaysia.

Company not incorporated in Malaysia but registered as Foreign Company under Companies Act, 2016

Complexity of XBRL Taxonomies

XBRL taxonomies can be complex and require a good understanding of accounting standards and financial reporting requirements. The taxonomy may also evolve over time, requiring constant updates and re-learning.

Data Quality Assurance

Ensuring data accuracy and consistency across different reporting periods is crucial. Mistakes in data entry or tagging can lead to errors in the XBRL filings, which may result in regulatory compliance issues or investor distrust.

Resource Intensive Process

Preparing XBRL filings can be resource-intensive, requiring dedicated time and expertise from accounting and finance professionals. Small or medium-sized enterprises (SMEs) may find it particularly challenging to allocate resources for XBRL compliance.

To overcome these challenges, companies can consider the following strategies

Invest in Training and Expertise

Providing training to staff members on XBRL reporting standards and taxonomy updates can enhance their understanding and proficiency in preparing XBRL filings.

Engage Professional Services

Companies can consider engaging external consultants or service providers with expertise in XBRL preparation to assist with the process, especially for complex filings or during periods of resource constraints.

Cost Efficiency

Outsourcing XBRL preparation can often be more cost-effective than handling it in-house. The specialized tools and expertise, enabling the task performed more efficiently and at a lower cost.

Expertise and Accuracy

XBRL preparation requires a deep understanding of both financial reporting standards and XBRL taxonomy. WTW Global has team of experts who specialize in XBRL reporting. This expertise can lead to more accurate filings and reduced risk of errors or omissions.

Time Savings

XBRL preparation can be time-consuming, especially for organizations that are not familiar with the process. Outsourcing this task allows internal teams to focus on core business activities while WTW Global handles the XBRL conversion.

Scalability

Whether a company needs to file XBRL for one report or multiple reports, WTW Global provides the flexibility in meeting these demands.

Compliance Assurance

XBRL filings must adhere to regulatory standards and requirements. With WTW Global well-versed in these regulations and can ensure that filings are compliant with SSM, reducing the risk of penalties or regulatory scrutiny.

Access to Technology

XBRL reporting tools and software can be expensive to acquire and maintain. Outsourcing to WTW Global gives organisations access to state-of-the-art technology and software without the upfront investment.

Focus on Core Competencies

By outsourcing XBRL preparation, organisations can focus on their core competencies and strategic objectives, rather than getting bogged down in the technical details of financial reporting and XBRL conversion.