Compliance - XBRL Filing

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. It offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using financial data. XBRL stands for eXtensible Business Reporting Language. It is already being put to practical use in a number of countries and implementations of XBRL are growing rapidly around the world.ess

 

 

Applicability

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XBRL Filling is Applicable on following Business entities

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• All India listed companies and their Indian subsidiaries.

• All companies with paid up capital of Rupees Five Cr. or above.

• All companies with turnover of Rupees Hundred Cr. or above.

• All Companies which are covered under (Extensible Business Reporting Language) Rules, 2011

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Time Line

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XBRL filing required for companies whose year ending is 31 March 2011 or thereafter, subject to fulfilling other criteria

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• Revised filing deadline of 30 November 2011 or 60 days from the usual due date for filing financial statements, whichever is later

• Any company not filing financial statements in compliance with Schedule VI of the Companies Act is exempt. For example, companies governed by Electricity Act, Banking Regulation Act or the Insurance Act is exempt in current phase

• NBFCs are exempt despite the fact that they prepare Schedule VI financial statements, since a separate taxonomy is planned

• Non-exempt subsidiaries of exempt parents (e.g. shared service centre or broking subsidiary of a bank) are covered since such companies file Schedule VI financial statements and are covered by the current taxonomy

• Power companies that prepare financial statements in accordance with Schedule VI are covered

• Scope of filing includes consolidated financial statements

• Voluntary filing encouraged for companies not currently meeting criteria

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Benefit from using XBRL

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All types of companies can use XBRL tool to automate the data collection process and distribution to various stakeholders. User can be benefitted in the following ways:

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• Saving costs

• Improvement in efficiency in managing business technical information – financial or cost.

 

XBRL, being extensible and flexible, can be adapted to a wide variety of requirements. All stakeholders whether they are preparers, transmitters or users of business data in the financial information supply chain can benefit from the use of XBRL.

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Taxonomy

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Taxonomy can be referred as an electronic dictionary of the reporting concepts. Taxonomy consists of all the data definitions, the basic XBRL properties and the interrelationships amongst the concepts. It includes terms such as net income, EPS, cash, etc. Each term has specific attributes that help define it, including label and definition and potentially references. Taxonomies may represent hundreds or even thousands of individual business reporting concepts, mathematical and definitional relationships among them, along with text labels in multiple languages, references to authoritative literature, and information about how to display each concept to a user.

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Exemptions

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Non-banking financial companies, Housing finance companies and Companies engaged in the business of Banking and Insurance sector are exempted from filing of financial statements under these rules.

 

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