Understanding eXtensible Business Reporting Language (XBRL)

eXtensible Business Reporting Language (XBRL) is an open international standard for digital financial reporting, enabling organisations to share business and financial data in a structured, machine-readable format. In Malaysia, XBRL plays a vital role in enhancing transparency, efficiency, and comparability of financial data across various industries and sectors.

 

What is XBRL?

XBRL is a language used to define, structure, and exchange financial and business information. It uses a series of tags and taxonomies (classification systems) to represent financial data in a format that software applications can easily process and analyse. This allows organisations to report their financial performance, governance, and other key data more streamlined and accurately.

 

Implementation of XBRL in Malaysia

In Malaysia, the Companies Commission of Malaysia (SSM) has adopted XBRL as a mandatory reporting standard for publicly listed companies and certain other entities. This was part of the government’s initiative to modernise financial reporting and align with global standards. By implementing XBRL, businesses can submit their financial reports to regulators like the Securities Commission (SC) and Bursa Malaysia in a universally understood format, reducing the complexity of financial data reporting and improving transparency for stakeholders.