Possible XBRL Validation Errors for Unaudited Accounts in Malaysia for Filing With SSM
The Companies Act 2016, subsection 267 (1), requires every Malaysian private company to appoint an auditor to audit its financial statements for each financial year. However, as per subsection 267(2) of the Companies Act 2016, the registrar may exempt certain private companies from appointing an auditor based on the qualifying criteria and conditions in Practice Directive No. 3 of 2017. The categories of private companies that qualify for audit exemption include:-
- Dormant companies
- Zero-revenue companies
- Threshold-qualified companies
Any companies mentioned above attempting to be exempted from audit must lodge their unaudited financial statements with the registrar within 30 days after circulation. Companies can make validation errors for unaudited accounts while filing their financial statements with SSM.聽
Read on to find out these possible XBRL validation errors while filing with SSM:聽
XBRL Validation Errors for Dormant Companies
Dormant companies do not carry on business and incur no accounting transactions in the financial year.
If,
- The status of the company is 鈥淧rivate Company鈥,
- Disclosure of financial statements audit status is 鈥淯naudited鈥,
- The description of the audit exemption category is 鈥淒ormant Company鈥,
- Disclosure of financial statements prepared for current submission is 鈥淪ubsequent preparation of financial statements鈥,聽
then the company鈥檚 current financial year start date should be equal to or more than 1st September 2017. Validation errors may occur when there is a mistake in any of these elements.聽
XBRL Validation Errors for Zero-Revenue Companies
A zero-revenue company is qualified for exemption if it has no revenue during the current or past two financial years.
滨蹿,听
- The status of the company is 鈥淧rivate Company鈥,
- Disclosure of financial statements audit status is 鈥淯naudited鈥,
- The description of the audit exemption category is 鈥淶ero-Revenue Company鈥,
- Disclosure of financial statements prepared for current submission is 鈥淪ubsequent preparation of financial statements鈥,聽
then, it is mandatory to report 鈥淎ssets鈥, which should be less than or equal to 鈥淩M 300,000鈥.聽
Additionally, if the Company鈥檚 current financial year start date is 鈥淓qual to or more than 1st January 2018鈥, then it is mandatory to report 鈥淩evenue鈥, which should be equal to 鈥淶ero鈥. Any mistakes in these elements can cause validation errors.聽
XBRL Validation Errors for Threshold Qualified Companies
A threshold-qualified company can get exempted from audit if its revenue does not exceed RM 100,000 during the current and past two financial years.聽
滨蹿,听
- The status of the company is 鈥淧rivate Company鈥,
- Disclosure of financial statements audit status is 鈥淯naudited鈥,
- The description of the audit exemption category is 鈥淭hreshold-Qualified Company鈥,
- Disclosure of financial statements prepared for current submission is 鈥淪ubsequent preparation of financial statements鈥,聽
- The company鈥檚 current financial year start date is 鈥淓qual to or more than 1st July 2018鈥,
then, it is mandatory to report 鈥淩evenue鈥, which should be less than or equal to 鈥淩M 100,000鈥. It also needs to report 鈥淎ssets鈥, which should be less than or equal to 鈥淩M 300,000鈥. Furthermore, it must report 鈥淣umber of employees鈥, which should be less than or equal to 鈥5鈥. Any mistakes in these elements can cause validation errors.聽
The Way Ahead
Possible errors in the unaudited accounts can lead to a wastage of time, cost, and effort. Therefore, it is important to prepare error-free XBRL reports before filing with SSM. Enter 福利视频鈥
With 17+ years of experience, the dedicated team at 福利视频 can help you prepare compliant XBRL or MBRS reports with high accuracy and reliability. Get in touch with a 福利视频 expert TODAY and make your way towards hassle-free financial reporting.聽