What Level of Accounting Accuracy Is Required for XBRL in Singapore?

For many Singapore SMEs, XBRL filing raises an important concern:

How accurate do our accounts need to be before submitting in XBRL format?

Is it acceptable if figures are “mostly correct”?
Can minor rounding differences pass?
Does XBRL tolerate small inconsistencies?

The short answer is simple:

XBRL does not lower the standard of accounting accuracy — it enforces it.

Let’s clarify what that means in practice.

1️⃣ XBRL Reflects Your Financial Statements — It Doesn’t Replace Them

XBRL is a structured reporting format required by ACRA for certain companies. It converts your financial statements into machine-readable data aligned with ACRA’s taxonomy.

That means:

• The underlying financial statements must already be accurate.
• XBRL simply maps those figures into standardized fields.

If your financial statements contain errors, XBRL will expose them.

2️⃣ Accounting Accuracy Must Meet Statutory Standards

Under Singapore’s Companies Act, companies must:

• Maintain proper accounting records
• Prepare financial statements that give a true and fair view
• Ensure disclosures are complete and consistent

XBRL submission does not create a new accuracy threshold — it enforces compliance with existing statutory requirements.

Figures must:

• Balance properly (assets = liabilities + equity)
• Match across statements
• Align with disclosures
• Reflect accurate categorization

Even small inconsistencies can trigger validation errors.

3️⃣ What Counts as “Inaccurate” in XBRL?

In practice, common accuracy issues include:

• Bank accounts not fully reconciled
• Misclassified expenses
• Incorrect revenue grouping
• Missing related-party disclosures
• Rounding inconsistencies across statements
• Discrepancies between notes and totals

XBRL validation checks can flag:

• Numerical mismatches
• Logical inconsistencies
• Missing required disclosures

Even if the amounts are close, structural inconsistencies may cause rejection.

4️⃣ Tolerance for Rounding Differences

Minor rounding differences are generally acceptable if:

• They are consistent across statements
• They do not distort totals
• They comply with standard accounting practice

However, rounding cannot hide structural imbalance. If totals do not reconcile properly, validation errors will appear.

5️⃣ The Real Risk: Year-End Catch-Up Accounting

Most accuracy problems don’t arise from complex accounting. They arise from:

• Irregular bookkeeping during the year
• Manual adjustments close to filing deadlines
• Incomplete reconciliation
• Disorganized supporting documents

When financial data is reconstructed at year-end, inconsistencies multiply.

6️⃣ Accuracy Is About Process, Not Just Numbers

High accounting accuracy comes from:

✔ Monthly bank reconciliation
✔ Consistent expense categorization
✔ Clear chart of accounts
✔ Timely recording of transactions
✔ Structured documentation

AI-powered platforms like ccMonet help SMEs maintain this level of discipline by:

• Automating bookkeeping
• Performing AI-driven reconciliation
• Standardizing categorization
• Providing real-time financial visibility
• Combining automation with expert review for compliance accuracy

When your books are continuously updated, XBRL accuracy becomes a natural outcome — not a stressful correction exercise.

Final Takeaway

The level of accounting accuracy required for XBRL in Singapore is not “approximate.” It must meet statutory standards of true and fair financial reporting.

XBRL doesn’t demand perfection — but it does demand consistency, completeness, and structural correctness.

For SMEs, the safest strategy isn’t trying to fix accuracy before filing.
It’s building a system that maintains accuracy all year.

👉 Learn how to strengthen your financial foundation at https://www.ccmonet.ai/

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