XBRL Adoption in Singapore:

One Year On

Agenda

What is XBRL? Why XBRL for ACRA? ACRA Taxonomy Filing Requirement in XBRL Current Initiatives with XBRL Learning Points on Implementing XBRL

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What is XBRL?

XBRLAcronym for “eXtensible Business Reporting Language”.An open-standard reporting language based on XML (eXtensible Mark-up Language) used for reporting of financial information.Developed by XBRL International Inc., a non-profit consortium.

Reporting FormatsWeb formats, text files, spreadsheets, PDF; Non-interchangeable and incompatible.Prevents effective and efficient sharing of financial data across applications and computing platforms.

XBRLItems of financial data are “tagged” with identifying standardised descriptions. Allows exchange of financial data between differing information systems (interoperability).Allows information to be easily extracted and analysed.

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What is XBRL? Human Readable v XBRL

<acra:ByLiquidityOrCurrentNon-CurrentClassification contextRef="Company_Current_AsOf">By Current/Non-Current Classification</acra:ByLiquidityOrCurrentNon-CurrentClassification><acra:PropertyPlantEquipmentTotal contextRef="Company_Current_AsOf" decimals="-3" unitRef="monetary_unit">731000</acra:PropertyPlantEquipmentTotal><acra:PropertyPlantEquipmentTotal contextRef="Company_Prior_AsOf" decimals="-3" unitRef="monetary_unit">221000</acra:PropertyPlantEquipmentTotal><acra:PropertyPlantEquipmentTotal contextRef="Consolidated_Current_AsOf" decimals="-3" unitRef="monetary_unit">12046000</acra:PropertyPlantEquipmentTotal><acra:PropertyPlantEquipmentTotal contextRef="Consolidated_Prior_AsOf" decimals="-3" unitRef="monetary_unit">22733000</acra:PropertyPlantEquipmentTotal><acra:IntangibleAssetsTotal contextRef="Company_Current_AsOf" decimals="-3" unitRef="monetary_unit">0</acra:IntangibleAssetsTotal><acra:IntangibleAssetsTotal contextRef="Company_Prior_AsOf" decimals="-3" unitRef="monetary_unit">0</acra:IntangibleAssetsTotal><acra:IntangibleAssetsTotal contextRef="Consolidated_Current_AsOf" decimals="-3" unitRef="monetary_unit">19820000</acra:IntangibleAssetsTotal><acra:IntangibleAssetsTotal contextRef="Consolidated_Prior_AsOf" decimals="-3" unitRef="monetary_unit">938000</acra:IntangibleAssetsTotal> 4

What is XBRL? Global Developments

Extracted from 18th XBRL International Conference presentation on Securities Filing in XBRL Format-Voluntary Filing Programs Around the World

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Why XBRL for ACRA?

BeforePortable Document Format or PDF of financial statements of companies filed with ACRA with the Annual Returns

Companies also required to fill up e-form for Financial Highlights (e.g. profit and loss figures, turnover, etc) separately; human errors

PDF of financial statements purchased by Information Resellers and public for credit and financial analysis, etc

AfterWith XBRL, retrieval made more efficient; financial highlights extracted from XBRL financial statements

Data integrity and accuracy improves with validation checks by FS Manager

Smaller document size makes transferability by FTP possible for one stop filing service- Tax and Statistics Authorities

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General Overview- Financial Reporting Process

FinancialStatements (FS)

Complies with the Accounting

Standards andgives a true &

fair view

Directors

Auditor

Audits the financial statements

Directors- Responsible for the preparation and filing of the financial

statements

FSPrepared and Filed

UsingFS Manager

Shareholders

Other Consumers & Users of FS

Promotes access to financial information

Information flow

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XBRL-Enabled Financial Information Marketplace

Accounting Systems

Collection of XBRL Financial InformationCollection of XBRL Financial Information

Public User ACRA

Prepare FSPrepare FSXBRL Engine

StorageSubmitSubmit

DataInterfaceModule

FileFileUpload FSUpload FS

FS Manager

c

Revenue (S$m)

0

10

20

30

40

50

60

70

80

2003 2004 2005 2006 2007

BizhubBizhub

Feedback and data feed

Governmentusers

Marketplaceadministrator

Businesscommunity users

Feedback and data exchange

Distribution of XBRL Financial Information

Why XBRL for ACRA? Adopting XBRL aligned with ACRA’s overall strategic direction of enabling:

a pro-enterprise financial reporting environment for businesses in Singapore; and

a value enhancing financial information flow to both local and international business community.

Strategic goals to be achieved with XBRL adoption: XBRL will benefit the business community - Improving access to data of

Singapore companies Unlocking new value from financial information filed with ACRA Facilitating harmonised corporate financial reporting Strengthening our regulatory vigilance - A trusted business hub

An article by CPA Australia in its Nov 2008 “INTHEBLACK” publication examines the XBRL adoption in Singapore: http://www.cpaaustralia.com.au/cps/rde/xchg/SID-3F57FECB-919854ED/cpa/hs.xsl/724_30799_ENA_HTML.htm

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ACRA Taxonomy

What is taxonomy? Taxonomy is similar to a “dictionary” in XBRL context 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

What a taxonomy would look like:Mandatory Data Type Period

TypeLine 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 Income10

How it is translated into an Online Spreadsheet

Captures core data and user-described data 11

ACRA Taxonomy Designed to comply with the Singapore Financial Reporting Standards (which is closely

aligned with the International Financial Reporting Standards) and the Singapore Companies Act

Captures 464 data elements and 39 tuples (i.e. user-described data fields) Designed based on the premise that:

no company should extend the taxonomy; and industry specific data should be in the single taxonomy if important

Self-extending taxonomy concept that allows for: core data that is common to most entities and of interest to most users to be captured

specifically; and other data to be captured under a flexible classification that will allow for efficient manual

extraction 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

A PDF copy of the ACRA Taxonomy is available under the “Illustrative Financial Statements” section of: http://www.acra.gov.sg/Services/Company/Filing_of_Financial_Statement_in_XBRL.htm12

FS Manager Online tool

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Using FS Manager to Prepare FS

FS Manager is designed to be used as a Financial Statement Preparation Tools

© Copyright Ecquaria Technologies Pte Ltd. All Rights Reserved.

ACRA FS ManagerACRA FS Manager

XBRL

Data Entry

Importing fromaccounting systems

XBRL

Save as XBRLPDF

Save as PDF

Filing Requirement in XBRL

Scope of XBRL Filing of Financial Statements:

Unlimited and Limited By Shares Companies

Excluded Categories Banks, insurance companies and finance companies whose activities are

regulated by the Monetary Authority of Singapore Companies using accounting standards other than Singapore Financial

Reporting Standards or International Financial Reporting Standards

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Filing Requirement in XBRL Financial Periods Affected

FS Manager launched in May 2007 for use by preparers Filing of Annual Return on or after 1 November 2007 and the financial

period concerned ends on or after 30 April 2007

Giving More Time if filing in full XBRL 1 Month waiver of penalties for Late Annual General Meeting (AGM) or

Late Filing Not applicable to public listed companies

ACRA Practice Directions 2 and 5 of 2007 and 3 of 2008 issued and available at: http://www.acra.gov.sg/Publications/Practice_Directions.htm

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Two Filing Options

Option A: Full XBRL FS Manager is used to prepare the

full set of financial statements for tabling at the AGM; or

Optional to submit a PDF copy of the full set of financial statements as tabled at the AGM

Option B: Partial XBRL Submission of Balance Sheet,

Income Statement and Mandatory Information in XBRL; and

A PDF copy of the full set of financial statements as tabled at the AGM

Filing Requirement in XBRL

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Filing Statistics (1st Year of XBRL)

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%

* Partial XBRL pertains to a minimum of the balance sheet, income statement and mandatory information.

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From the data collection perspective Revision of current ACRA Taxonomy in the 2nd quarter of 2009 for latest

accounting standards changes - Public consultation released on 13 October 2008 (Details: http://www.acra.gov.sg/Publications/PublicConsultationonRevisionstoACRATaxonomy.htm)

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

Future maintenance and enhancements to FS Manager, examination of an offline FS Manager and exploring use of XBRL data for analytical and benchmarking purposes

Ongoing independent review of 1st set of corporate financial statements in XBRL

Current Initiatives with XBRL

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Current Initiatives with XBRL From the data distribution perspective Seamless flow of information from ACRA to the Inland Revenue Authority of Singapore

(IRAS) for the benefit of businesses: Companies filing their financial statements in Full XBRL with ACRA need not file the

same copy with IRAS for their annual income tax returns

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

Leveraging on XBRL information for a more effective financial surveillance programme and facilitates various policy reviews

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

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

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Learning Points on Implementing XBRL Active feedback from all affected stakeholders is critical

Importance of giving ample time for change

Clear communication of requirements to stakeholders

Involve the professional bodies, accounting firms and service providers early

Provision of adequate help resources (i.e. XBRL helpdesk, FAQ etc.)

Extensive information should be provided online

Continuous testing and re-testing

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Our Vision - Harmonised Corporate FinancialReporting to the Government

Other Government

agencies

Regulatory Forms(Based on a Harmonised Singapore Taxonomy)

One-stop Filing PortalPublic 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

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Thank YouFurther details available at:

http://www.acra.gov.sg/Services/Company/Filing_of_Financial_Statement_in_XBRL.htm

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