XBRL Filings
XBRL is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world.
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What is XBRL filings?
XBRL means extensible Business Reporting Language.XBRL is a language for the electronic communication of business and financial data which is revolutionizing business reporting around the world. It provides major benefits in the preparation, analysis and communication of business information.
Applicability of XBRL
As under section 137 of the Companies Act, 2013 using the Extensible Business Reporting Language (XBRL) taxonomy for financial year commencing on or after 1st April, 2014 is mandatory on
- All companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or.
- All companies having paid up capital of Rupees five crore and above; or.
- All companies having turnover of Rupees one hundred crores and above; or.
- All companies which were hitherto covered under the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011:
Exemption from XBRL filing
- Companies in Banking, Insurance
- Power Sector
- Non-Banking Financial Companies
Checklist of Procedure of XBRL
- Check whether the company falls under the XBRL Limit.
- Install the XBRL Software from XBRL Software vendor. The parent system is regarded as the main system and other systems will be considered as the client systems.
- Check active net connection in the main system as well as client systems.
- Create the user id and password for the Company.
- Feed all the relevant data on the XBRL generated Company. The details of the company contains financial tagging, Fixed Asset tagging and non financial tagging.
- Once the details have been filled, check the errors generated.
- Eliminate the errors to 0.
- Generate the XML file of the Company that is instance document.
- Download the C&I taxonomy from MCA Portal.
- Validate the XML document using MCA XBRL validation tool V2.0.4 available on MCA21 portal.
- Generate the Pdf of the same XML document.
- Attach the Pdf file as attachment in the annual filing form AOC-4 (XBRL).
- Upload the form on MCA Site.
FAQs
Whether XBRL software has to be purchased from separate vendors and then installed in our computers or MCA itself will provide us with the software?
XBRL instance document creation software has to be purchased from the software vendors in the market. This software is used to create XBRL instance documents that would be uploaded on the MCA portal. Stakeholders may check whether the software is compliant with the Business Rules published by the MCA. MCA will provide a Validation Tool to provide a facility for validation of the instance document and filing of the same on the MCA Website.
XBRL increases the usability of financial statement information. The need to re-key financial data for analytical and other purposes can be eliminated. By presenting its statements in XBRL, a company can benefit investors and raise its profile. It will also meet the requirements of regulators, lenders and others consumers of financial information, who are increasingly demanding reporting in XBRL. This will improve business relations and lead to a range of benefits.
XBRL benefits comparability by helping to identify data which is genuinely alike and distinguishing information which is not comparable.
