The Companies Commission of Malaysia (SSM) has enhanced its Malaysian Business Reporting System (MBRS) to MBRS 2.0, requiring companies to submit relevant statutory information electronically in XBRL (eXtensible Business Reporting Language) format. With the implementation of MBRS 2.0, companies need to pay particular attention to the preparation and electronic lodgement of their Annual Return and Financial Statements and Report.
What is MBRS?
The Malaysian Business Reporting System (MBRS) is an electronic submission platform developed by SSM based on the XBRL format. XBRL is a structured electronic format that allows financial and non-financial information to be standardised, tagged and processed electronically.
SSM states that MBRS allows for the submission of:
- Annual Return (AR);
- Financial Statements and Report (FS); and
- Exemption Applications (EA) relating to the Financial Statements and Report and Annual Return.
MBRS 2.0 – What Has Changed?
MBRS is not simply a system for uploading a PDF copy of a company’s financial statements. The information needs to be prepared and submitted in the prescribed XBRL format, based on the relevant SSM taxonomy and business rules. SSM’s current MBRS 2.0 materials provide for the preparation of Annual Return and Financial Statements and Report using the MBRS Preparation Tool (mTool), which generates the XBRL file for submission.
From 1 June 2025, SSM’s MBRS 2.0 implementation requires companies to lodge their Annual Return and Audited Financial Statements through MBRS 2.0 in XBRL format. This means that companies and their professional advisers should ensure that their accounting and statutory information is properly prepared and mapped before the filing is made.
What Needs to Be Filed Through MBRS?
1. Annual Return
The Annual Return contains important information about the company, including prescribed corporate and shareholder information. The Annual Return is required to be prepared and lodged through the MBRS platform in the prescribed format. The information submitted should be consistent with the company’s latest corporate records and information maintained with SSM.
2. Financial Statements and Report
The company’s Financial Statements and Report are also required to be prepared for MBRS filing in the prescribed XBRL format. This may include information from the company’s:
- Statement of Financial Position;
- Statement of Profit or Loss and Other Comprehensive Income;
- Statement of Changes in Equity;
- Statement of Cash Flows;
- Notes to the Financial Statements; and
- Other relevant financial and non-financial information required under the applicable MBRS taxonomy.
The financial information needs to be appropriately mapped to the relevant XBRL concepts before the submission is generated.
3. Exemption Applications
MBRS also provides for Exemption Applications (EA) relating to the Annual Return and Financial Statements and Report.
Therefore, MBRS is not limited to the filing of annual financial statements. Where a company is eligible to make a relevant application, the applicable exemption or related application may also be prepared through MBRS.
What is XBRL and Why Does It Matter?
XBRL stands for eXtensible Business Reporting Language. Unlike a conventional PDF document, XBRL provides financial information in a structured, machine-readable format. Financial statement items need to be associated with the appropriate XBRL concepts under the applicable SSM taxonomy. Consequently, MBRS preparation involves more than simply converting a PDF financial statement into an electronic file.
Who Prepares and Who Lodges the MBRS Filing?
It is important to distinguish between preparation and lodgement. SSM provides the MBRS Preparation Tool (mTool) for preparing the Annual Return and Financial Statements and Report and for generating the XBRL file. The MBRS Portal (mPortal) is then used for the electronic submission. SSM also states that only the appointed licensed Company Secretary or Company’s Agent can lodge the annual documents with the Registrar through MBRS.
In practice, the preparation of the financial information may involve the company’s management, accountant or other professional advisers, while the company secretary or authorised filing agent completes the formal lodgement. Close coordination between the company’s management, accountant, auditor and company secretary is therefore important.
Does the Auditor Prepare the MBRS Filing?
The MBRS filing and the audit are two separate processes. The auditor is responsible for expressing an independent opinion on the financial statements in accordance with the applicable auditing standards. The preparation of the XBRL information for MBRS purposes is a separate compliance and reporting process.
However, the MBRS financial information should ultimately be consistent with the final approved financial statements.
Companies should therefore avoid making changes to the financial information after the audit has been completed without ensuring that the MBRS submission is updated accordingly
Common Issues Companies Should Watch Out For
MBRS filing can involve more work than companies initially expect. Some common areas requiring attention include:
1. Differences between accounting records and final financial statements
The figures submitted through MBRS should agree with the final financial statements.
2. Incorrect XBRL mapping
A financial statement line item needs to be mapped to the appropriate concept in the SSM taxonomy.
Incorrect mapping may result in inaccurate information being submitted.
3. Incomplete information
MBRS requires both financial and certain non-financial information. Companies should ensure that the required information is available before starting the preparation process.
4. Changes after audit finalisation
If the financial statements are amended after the MBRS file has been prepared, the relevant MBRS information may also need to be updated.
5. Filing deadlines
Companies should ensure that the Annual Return and Financial Statements are lodged within the applicable statutory deadlines.
Failure to comply with statutory filing requirements may result in late lodgement consequences.
How ST & Partners Can Assist with MBRS Filing
We can also assist companies that have already completed their accounting and audit but require assistance with the MBRS/XBRL conversion and preparation before lodgement. Contact us to discuss your company’s MBRS requirements and filing arrangements.