Lets start discussion on XBRL, its introduction, future, software, carrer, how to and all the main aspect which we can cover in this thread.
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1 Replies
Naveen Garg
(CA )
(96 Points)
Replied 22 March 2012
eXtensible Business Reporting Language is a XML(extensible markup language) base computer language which is a new way of communication of business information in which business reports are converted from paper format to machine readable format.
XBRL provide us with "Interactive Data" which gives the financial community a standards-based method to prepare, publish, exchange, search, and analyze financial statements of all type of reporting entities – across all software formats and technologies.
XBRL is regulatory requirement which automates the data and XBRL output can be used in data analysis without rekeying and various reports can be generated on a click of mouse which increase transparency and useful for the user who exchange the data over internet.
User of XBRL
The following are the potential user of XBRL:
- Company
- Auditor
- Regulator
- Investor
- Research Analyst
Dive into XBRL
Technically Taxonomy is a collection of taxonomy schemas and linkbases.
Financially Taxonomy is a hierarchal structure of business concepts definitions. It is like a dictionary from which definition of business concepts can be extracted. It also depicts the relationship between the total item and the sub items.
Instance Document: XBRL instance document is output of XBRL readable by computers. Instance document contain facts together with values and linked to the taxonomies.
Abstract: Abstract is used to cover all the tags of same group under one heading (roof), in such a way that hierarchy between the elements can be depicted in a systematic and logical manner.
Tag: Tag is an element that is used to identify (map) and describe the elements of financial statements or any business term.
Extension: Extensibility is one of the important aspects of XBRL. When there is no tag available in public taxonomy to identify an element of financial statements of Reporting Entity, Extension tag is used to identify (Map) the same element.
Myths about XBRL
There are some myths about XBRL:
- XBRL is software.
- XBRL is a New Accounting Standard.
- XBRL is full proof
XBRL in INDIA
XBRL India is a Company registered under Section 25 of Companies Act, 1956, incorporated for managing the affairs of Indian Jurisdiction of XBRL International.
Ministry of Corporate Affairs has adopted the new way of reporting by issuing General Circular 9 dated 31st March, 2011. The Ministry of Corporate Affairs, in supersession of its earlier circular No. 9/2011 dated 31.03.2011, has mandated for following companies to file Balance sheet and Profit and loss Account along with Directors’ and Auditors’ Report for the financial year ending on or after 31st March, 2011 by using XBRL taxonomy:
(i) All companies listed in India and their Indian subsidiaries;
(ii) All companies having a paid up capital of Rs. 5 crore and above
(iii) All companies having a turnover of Rs. 100 crore and above.
However banking companies, insurance companies, power companies and Non-Banking Financial Companies (NBFCs) are exempted for XBRL filing, till further orders.
All companies falling in Phase -I are permitted to file upto 31-12-2011 without any additional filing fee.
Certification of the XBRL document on e-form will be done by the CA/CS/CWA in whole time practice.
To comply with this requirement Ministry of Corporate has published Final Taxonomy along with Business Rules. A new portal also has been launched.
Address of the portal is: https://www.mca.gov.in/XBRL/
Final Taxonomy is available on https://www.mca.gov.in/XBRL/
Business Rules are available on https://www.mca.gov.in/XBRL/
An analysis of taxonomy is as follows:
- 3,187 Number of elements are there.
- 3,187 elements have been covered in 57 extended links.
- 3,187 elements contain 24 tuples.
- 3,187 tags contain 361 rules.
A summary of Business Rules can be obatined from gargnaveen2115 @ gmail.com
Role of Chartered Accountants
- Help in understand the Regulatory Requirement.
- Taxonomy Development.
- Tool Evaluation.
- Examine the different option available suitable to company.
- Training
- Outsourcing Business.
Road Ahead
- XBRL filing applicability will be extended to all sectors i.e. Power, NBFC, Banking and Insurance.
- XBRL filing applicability will be extended to all 9,00,000 companies registered with Ministry of Corporate Affairs.
- Scope of XBRL filing will be enhanced to full report including notes.
- There will be Unified Reporting to all the regulators instead of separate filing to each regulator.
- IFRS will be adopted along with IFRS Taxonomy.
XBRL is not about sharing of more information but it’s about sharing of information in a right way. We can say that XBRL is the future of Reporting.
Thanks & Regards
Naveen Garg
gargnaveen2115 @ gmail.com
https://www.linkedin.com/groups/XBRL-in-INDIA-3691371?trk=myg_ugrp_ovr
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