XBRL: Cost Compliance Report and Cost Audit Report

Cost Records Compliance Report and Cost Audit Report to be filed in XBRL Language

MCA’s Initiative to integrate Financial and Costing Reports

MCA has issued a circular No. 8/2012 on 10 May 2012 making in mandatory on the part of Cost Auditors and  Companies to file Cost Audit Reports and Cost Records Compliance Report in the XBRL format.

It is normal practice in the costing to modify the formats to suit the requirement of the organization. Different Cost Accounting Records Rules earlier allowed that, also in the current  cost accounting record rules discretion is given to the company to prepare the cost records in the formats, the company deems fit.

But please note that the company can prepare the cost records/cost sheets in any format but ultimately these will be required to be mapped to fit in the taxonomy released by ICAI

The taxonomy draft released by the ICAI has the following sheets:

Detailed note on XBRL Taxonomy for cost records will be uploaded later

It needs mention that the taxonomy contains more or less, the same nomenclatures/items which has been used in Cost Audit Reports / Cost Compliance Reports.

As the cost records preparation will be underway in most of the organizations, it is the personal opinion of the undersigned that the cost records should be maintained as far as possible in the prescribed formats mentioned in the Cost Accounting Record Rules or Cost Audit Report Rules.

We request you to contact us at “navneetic@yahoo.com” in case of any further query.

The circular issued by MCA is reproduced below for reference:

Filing of Cost Audit Report (Form-I) and Compliance Report (Form-A) in the extensible Business Reporting Language (XBRL) mode.

General Circular No. 8/2012, dated 10-5-2012

It has been decided by the Ministry of Corporate Affairs to mandate the cost auditors and the companies to file Cost Audit Reports (Form-I) and Compliance Reports (Form-A) for the year 2011-12 onwards (including the overdue reports relating to any previous year) by using the XBRL taxonomy. These reports, required to be filed in the XBRL format, would be based on the Taxonomy on XBRL being developed for the formats (Form-I & Form-A) given in the following Rules:

(i) Companies (Cost Accounting Records) Rules, 2011

(ii) Cost Accounting Records (Telecommunication Industry) Rules, 2011

(iii) Cost Accounting Records (Petroleum Industry) Rules, 2011

(iv) Cost Accounting Records (Electricity Industry) Rules, 2011

(v) Cost Accounting Records (Sugar Industry) Rules, 2011

(vi) Cost Accounting Records (Fertilizer Industry) Rules, 2011

(vii) Cost Accounting Records (Pharmaceutical Industry) Rules, 2011

(viii) Companies (Cost Audit Report) Rules, 2011

2. Hence, all cost auditors and companies, which are liable to file Cost Audit Reports (Form-I) and Compliance Reports (Form-A), are requested to file their reports with the Central Government after 30th June, 2012 in the XBRL mode by which time the relevant taxonomy together with Form-I &, Form-A in XBRL format is likely to be ready and notified.

3. The Institute is requested to circulate this General Circular for the information of all concerned.

Regards

Navneet Kumar Jain

Practicing Cost Accountant

FCMA, MBA., LL.B., M.COM., PGDTL, AIIISLA., LIII

For N.K. Jain And Associates

Email: navneetic@yahoo.com, navneetic@rediffmail.com