Malaysian Business Reporting System ("MBRS") 2.0

Is Your Organisation Ready?

Introduction to MBRS

The Malaysian Business Reporting System ("MBRS") was introduced by the Suruhanjaya Syarikat Malaysia ("SSM") in 2018 as a digital submission platform based on the eXtensible Business Reporting Language ("XBRL"). This platform facilitates the digital filing of:

Financial Statements ("FS");
Annual Returns ("AR"); and
Exemption Applications ("EA") related to FS and AR submissions.

The MBRS itself is not new, and it has been mandatory since March 2019 to submit of ARs, certificates of Exempt Company ("EPC"), and unaudited FS through MBRS . With the introduction of MBRS 2.0, businesses now must prepare for an expanded and more comprehensive reporting framework.

MBRS Filing Requirements

Who is required to file?

All companies, including foreign companies registered in Malaysia, that are required to submit their annual statutory FS to SSM must comply with MBRS filing requirements. Previously, FS submissions were done manually in a non-digital format at designated SSM offices. However, on 26 November 2024, SSM announced the compulsory digital submission of financial statements under MBRS 2.0, extending the mandate to all entities, including previously exempted sectors such as banking, financial, and insurance institutions regulated by the Bank Negara Malaysia.

What is MBRS 2.0?

MBRS 2.0 builds upon the foundation of the original system, introducing enhancements to improve reporting efficiency, accuracy, and compliance. Some key enhancements include:

Updated reporting framework: Incorporating the latest Malaysian Financial Reporting Standards ("MFRS"), Malaysian Private Entity Reporting Standards ("MPERS"), and revised Companies Act 2016 requirements.
Improved XBRL taxonomy: A more structured and detailed classification system for financial and non-financial data.
Enhanced user interface and system functionality: Streamlined submission processes, better validation checks, and real-time error detection.
Broader filing coverage: Expansion to include additional compliance documents beyond FS and AR submissions.

Advantages of MBRS 2.0

Using MBRS 2.0 for Transparent and Consistent Financial Reporting

MBRS 2.0 can revolutionise the way financial reports are prepared, submitted, and reviewed by ensuring alignment, consistency, and transparency across all stakeholders. Here is how it works:

Standardised Reporting Format
- MBRS 2.0 provides a model-based format for financial reporting, where all requirements and terms are predefined and standardised.
- This ensures that businesses follow a uniform structure when preparing their financial statements and facilitating the users.
Reducing Reporting Discrepancies
- Traditionally, variations in financial reporting practices by different businesses could lead to inconsistencies that make comparisons difficult.
- With MBRS 2.0, standard templates and validation rules help ensure that financial statements are prepared in a structured and consistent manner, minimising discrepancies and misinterpretations.
Enhancing Public and Investor Confidence
- By using MBRS 2.0, businesses can demonstrate their commitment to transparency and accuracy in financial reporting.
- Standardised reporting enhances trust among investors, lenders, and other stakeholders, as they can rely on financial statements that are structured consistently and adhere to regulatory requirements.
- This comparability across businesses and reporting periods strengthens overall confidence in financial disclosures.

How Can We Help?

The transition to mandatory MBRS submissions for financial statements is rapidly approaching, with full implementation slated for 1 June 2025.

https://www.ssm.com.my/Lists/Announcement/AnnouncementDetails.aspx?ID=379.

Transitioning to MBRS 2.0 presents challenges, particularly for organisations unfamiliar with digital reporting and XBRL-based filing requirements. Preparing the XBRL file for FS involves:

Identifying and tagging financial and non-financial information from signed and audited FS;
Mapping the data accurately to the corresponding element labels within the MBRS Taxonomy;
Cost savings and leverage on our know-how.

Many organisations may lack the in-house expertise or resources to navigate this transition smoothly. As such, outsourcing the conversion and submission process can be a cost-effective and efficient solution. Provide digital filing support, allowing you to focus on core business operations.

Conclusion

With MBRS 2.0 now in effect, organisations must take proactive steps to ensure compliance. Understanding the requirements, investing in proper systems, and seeking expert guidance can help mitigate challenges and streamline the transition. If your organisation needs assistance in adopting MBRS 2.0, our team is here to provide the necessary expertise and support to ensure a hassle-free and compliant filing process.