1) What is XBRL? / Overview of XBRL Concept What is XBRLXBRL (Extensible Business Reporting Language) is an electronic format for Preparing, Analyzing and communicating, the financial data and other information, using XML technology. Top of Page How does it work?Simply put, XBRL uses latest technology to simplify business reporting and enhance its utility by defining a standard for presentation of financial statements. XBRL tags, known as taxonomy, is nothing but a mechanism for describing, naming and classifying items of business information in a specified document. In technical parlance, XBRL taxonomies are tag-lists which represent data structures and their internal relationships. Using the taxonomy prescribed by the regulators, companies need to map their reports, and generate a valid XBRL instance document. The process of mapping means matching the concepts as reported by the company to the corresponding element in the taxonomy. In addition to assigning XBRL tag from taxonomy, information like unit of measurement, period of data, scale of reporting etc., needs to be included in the instance document, which is the final document of the report. Top of PageWhy XBRLXBRL is an application of XML to business information and uses tags or structure to describe the data, making it immediately reusable, interactive and intelligent. It is also “extensible” so it can be customized for unique situations and reporting concepts. XBRL uses tags to describe and identify each item of data in an electronic document. The tags allow computer programs to sort through data and analyze relationships quickly and generate output in various formats. Because the tags are standardized, analysis can be conducted across multiple documents from multiple sources, even if the text in the documents is written in different languages. XBRL data is more robust, accurate, and transparent than data in financial statements that appears in legacy electronic and paper reports. For example: in an XBRL financial report, each piece of data (both numbers and text) is given a unique ID, based on standardized lists of accounting terms, or taxonomies. For example, a data point might be linked to the accounting terms "INR", "Net Profit", "2nd Quarter" "2010-11", means, Net Profile in Indian Rupees for the 2nd quarter of Assessment Year 2010-11. Thus the data entered by all companies in this particular tag will have the same meaning and will have the same denominator. Once data is tagged, it is computer-readable. It can be identified, verified, extracted, and reused. The tags remains connected to the data, so even when the data is used in other XBRL software, it can still be understood in its original context. XBRL tags both numbers and textual information, which means not only balance statements, but information such as statement of principals and even footprints, appendices, and updates, is accounted for, to aid in internal audits and external research and analysis. Top of PageHighlights of mendates and circulars related to XBRL by Ministry of Coporate Affairs (MCA)
- All companies listed in India and their Indian subsidiaries, - All companies having paid up capital of 5 Crores and above, - All companies having turnover of 100 Crores and above Exceptions include banking, insurance and power companies, and NBFCs. These companies are not within the scope of Phase 1, even if they meet any of the criteria given above. The companies operating in these sectors will file their financial reports in XBRL from FY 2011-12. - Balance sheet - Profit & Loss Account - Cash Flow Statements - Notes to Accounts - Auditor´s Report - Director´s Report - Company’s General Information - 30 November 2011 or 60 days from due date whichever is later. - MCA vide its circular dated 7 July 2011 required the statutory auditor to certify the XBRL output for filing. This has now been extended to all professionals like any Practicing Charted Accountants, Cost And Works Accountants and Company Secretaries vide circular dated 28 July 2011. Advantages of XBRL
Mythes and facts about XBRL
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