XBRL is an electronic format for communication of business and financial data which is revolutionizing business reporting around the world. The standardization in-built in the XBRL documents provides significant benefits in the preparation, analysis and communication of business information. XBRL provides a language in which reporting terms can be authoritatively defined.
a. More Accurate & Efficient Reporting
b. Monitoring of regulatory compliances with more speed and accuracy.
c. Investment analysts can save effort and greatly simplify the selection and comparison of data, thereby deepening their company analysis,
d. XBRL would provide validations which will improve the accuracy of filings by a firm significantly.
PARTS OF XBRL
TAXONOMY:- It is the process of tagging of the XBRL taxonomy elements with the various accounting heads in the books of accounts of the company. This would create the mapping of the taxonomy elements with the accounting heads so that the accounting information can be converted into XBRL form.
INSTANCE DOCUMENT:- 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.
VERIFICATION OF INSTANCE DOCUMENT BY XBRL VALIDATION TOOL:- Xbrl validation tool helps in validating the XBRL instance document. Validating the instance document is a pre requisite before filing & uploading.
PRE-SCRUTINY OF THE VALIDATED INSTANCE DOCUMENT THROUGH THE XBRL VALIDATION TOOL:- Once the Xbrl validation tool successfully validates the instance document, 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 shall be performed.
SWITCHING OVER TO XBRL
MCA:- Earlier the Ministry of Corporate Affairs (MCA) has switched over its reporting format to XBRL for Annual Report and Cost Audit report filings. Ministry of Corporate Affairs vide its GENERAL CIRCULAR 37/2011, DATED 7-6-2011 mandated the filing of financial statements in XBRL mode for following class of companies :-
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
BSE:- Few days back, BSE has asked for filing of shareholding pattern by listed companies in XBRL mode with effect from June 11, 2015
RBI:- Now, RBI has directed all the Authorised Dealer Category - I (AD Category - I) Banks to file their half yearly BEF statement in XBRL mode to respective regional offices of Reserve Bank of India With effect from the half year ending June 2015.
BEF statement is a statement showing details of remittances effected towards import in respect of which documentary evidence has not been received despite reminders.
Tags Corporate Law