Xbrl

Is this some rocket science??

The answer to this question is a big “NO”. XBRL just like xml is a reporting language, ie eXtensive Business Reporting language. XBRL tool is developed by XBRL international ,a nonprofit consortium of around 650 major companies.

XBRL is like coding a document like we have a barcode for every product . It is coded for protecting it from unauthorized changes. Just like a barcode provides information like Product name, MRP, expiry date similarly XBRL tags will provide following information-:

· Entity name

· Period of accounts

· Accounting reference ( Companies act , schedule VI)

· Scale factor (Value reported as actual or in thousands, lacs)

· Unit (INR, USD, GBP)

Benefits of XBRL-:

· With information given n specific format MCA department can generate watevr reports it needs.

· As for every data there are specific tags given we can convert name according to different countries , like Rs 2 lac is tagged in for net profit before tax in India , once we convert the language the tag name will change to 税前净pofit which is net profit before tax for Chinese. This will allow investors o easily understand the financial statements of any company as all will be reporting a similar information

· If we give our loan applications in XBRL format the charges are less as banks don’t have to take much pain in making reports they need.

· It allows businss information to be reused and repurposed. A business report created once can be used to create many documents in different formats with no loss of accuracy or integrity.

· XBRL enhances ability to compare information.

· XBRL allows unique reporting situations.

· And with XBRL in use in next 5 years we can expect single reporting for income tax and MCA.

Now what is XBRL Taxonomy??

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