Filing in xbrl format and its practical aspects
As such, following class of companies are required to file their Balance Sheet and Profit and Loss Account in XBRL Format:-
1. Listed Companies and their subsidiaries;
2. Companies having paid up capital of Rs. 5 Crores and above;
3. Companies having turnover of Rs. 100 Crores and above.
However, banking, insurance, power Companies and NBFCs are exempt for XBRL Filing.
Time Limit :-
To provide adequate time and flexibility, time limit has been extended to 30th November, 2011.
All the above entities are allowed to file their balance sheet upto 30/11/2011 or within 60 days of their due date which ever is later.
Authentication of XBRL Document:-
Earlier it was decided that only Statutory Auditors will certify the XBRL document. However, it was further clarified that CA / CS/ CWA in whole time practice can certify XBRL documents.
1. Creation of XBRL instance document:
The Companies and professionals have an option either to obtain complete set of XBRL software or to obtain services of the IT companies / professionals having such XBRL software or access privilege of such software
After payment of requisite fee they can have their own user id. Then using that user id the financial statements can be converted into XNRL format. Using the same id Companies / Professionals can convert the financial statements of their Group Companies / Other Companies as well. However, additional fees is to be payable for each company data conversion.
A. Map Company’s each financial statement element to a corresponding element in published taxonomy
After user registration the next step is to MAP the company’s data into XBRL Taxonomy. Companies have the option to create by their own XBRL documents in house or to obtain the services of the owner of the software or the service provider to convert their financial statements into XBRL form.
Tagging is not a difficult task just to convert the language used in financial statement into the language used in Taxonomy for example:
1. First Instance:
In balance sheet the word used:- Reserve and Surplus
And the approved Taxonomy is :- Reserve & Surplus
So, you have to change the specified tab into Reserve&Surplus.
2. Second Instance:
In the profit and Loss Account the used word is Salaries.
And the approved Taxonomy is Salary & Wages.
So, you have to change the specified tab into Salary & Wages.
This process is called the tagging.
There are certain like above errors occurs while tagging the financial statements because in the financial statements Companies use specified Schedule VI and the taxonomy is created keeping in mind that Schedule VI.
The excel file is uploaded into XBRL software and it automatically convert the specific fields of financial statements into the Taxonomy specified fields and in case of any error as above, the system will automatically show error. You have to correct that error and save the respective page.
B. Create instance document for Balance sheet and Profit and loss Account-
Once the tagging of financial statement elements with the published taxonomy elements is done, the next step is to create the instance document. An instance document is a XML file that contains business reporting information and represents a collection of financial facts and report-specific information using tags from the XBRL taxonomy.
Separate instance documents need to be created for the following:
1. Stand Alone Balance sheet of the company
2. Stand Alone Profit and Loss Account of the company
3. Consolidated Balance sheet of the company
4. Consolidated Profit and Loss Account of the company
The instance document should contain the financial information for both the current as well as the previous financial year.
Consolidated balance sheet and Profit and Loss instance documents to be created only in case the same is applicable to the company.
All the instance documents are in machine readable format.
1 – Certify the instance Document created using XBRL software
The next step is to certify the instance document. As specified by the MCA now CA / CS / CWA in practice can certify the instance document by using their digital signature.
However, this validation is awaited from the Ministry.
2 – Download XBRL validation tool from MCA portal
There shall be a tool provided at the MCA portal for validating the generated XBRL instance document. Validating the instance document is a pre requisite before filing the balance sheet and profit & loss account on MCA portal. You are required to download the tool from the MCA website and validate the instance document before uploading. There shall also be a facility to view and search the taxonomy.
3 – Use the tool to validate the instance document
Once the tool has been downloaded, the next step is to validate the instance document. The following validations shall be performed by the tool-
(a) Validating that the instance document is as per the latest and correct version of taxonomy prescribed by MCA
(b) All mandatory elements have been entered
(c) Other validations as per taxonomy
4- Perform pre-scrutiny of the validated instance document through the tool
Once the instance document is successfully validated from the tool, the next step is to pre-scrutinise the validated instance document with the help of the same tool. For pre-scrutinizing the instance document, a working internet connection shall be required. In the Pre-scrutiny, the server side validations (i.e. validations which are to be validated from the MCA21 system) shall be performed.
Also, there shall be a feature provided in the tool to verify the appearance of the generated XBRL instance document using the built in Viewer. It is imperative that the company should use this feature to verify the accuracy of the instance document.
5- Attach instance document to the Form 23AC and Form 23ACA
There shall be a separate set of Form 23AC and Form 23ACA available on the MCA portal for filing in XBRL form. First fill up the Form 23AC and Form 23ACA. Thereafter, attach the validated and pre-scrutinised instance document for Balance sheet to Form 23AC. Similarly, the instance document for Profit and Loss account is to be attached to Form 23ACA. Separate instance documents need to be attached with respect to Standalone financial statements and consolidated financial statements.
6- Submitting the Form 23ACA and Form 23ACA on the MCA portal
After the forms are filled, you are required to perform pre-scrutiny of the form, sign the form and then upload the same as per the normal eForm filing process. It shall be validated that the attached instance documents are validated and pre-scrutinised from the XBRL validation tool.
Note:- Validation Tool of MCA is awaited.