Tapuriah Jain & Associates

All About XBRL
 By: Mr. Gurvinder Sing

INTRODUCTION

XML stands for extensible markup language. Extensible means language that can be extended by anyone who wants to create additional ways to use it. Markup means that XML’s primary task is to give definition to text and symbols. Language means that XML is a method of presenting information in understandable formats.

XBRL was created with a view to develop a consistent method of reporting business event information. The initial goal of XBRL is to provide an XML-based framework that the global business information supply chain will use to create, exchange, and analyze financial reporting information.

HOW DATA DISPLAY IN XML FORMAT

XML-Coded data:

New England
02312000
Wal-Mart
XBRL in INDIA
A separate company, under section 25 has been created, to manage the operations of XBRL India. The main objectives of XBRL India are:

• To create awareness about XBRL in India
• To develop and maintain Indian Taxonomies
• To help companies, adopt and implement XBRL.

XBRL in MCA

Ministry of Corporate Affairs vide its General Circular No. 09/2011 dated 31.03.2011 mandated certain class of Companies who are covered under Phase I. Following class of companies are required to file their Balance Sheet and Profit and Loss Account in XBRL Format:-

• Listed Companies and their subsidiaries;
• Companies having paid up capital of Rs. 5 Crores and above;
• Companies having turnover of Rs. 100 Crores and above.

However, banking, insurance, power Companies and NBFCs are exempt for XBRL Filing in Phase I.

Time Limit :-

To provide adequate time and flexibility to become familiar with the new Format, time limit has been extended to 30^th December, 2011.

All the above entities are allowed to file their balance sheet upto 30/12/2011 or within 60 days of due date of Filling.

Steps for Creation and filling of Instance Documents

Companies covered under First Phase are required to file their Instance Document created according to the xbrl Rules after converting the same in .xml file. MCA has declared Taxonomy for the purpose of XBRL. Taxonomies for Indian companies are developed based on the requirements of:

• Schedule VI of Companies Act,
• Accounting Standards, issued by ICAI
• SEBI Listing requirements.

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.

Instance document is a business report in an electronic format created according to the rules of XBRL. It contains facts that are defined by the elements in the taxonomy it refers to, together with their values and an explanation of the context in which they are placed. XBRL Instances contain the reported data with their values and “contexts”. Instance document must be linked to at least one taxonomy, which defines the contexts, labels or references.

Creation of Instance Document is nothing but mapping of company’s data into XBRL Taxonomy. The Process used for mapping the Data into Taxonomy is known as Tagging. Tagging is just a task to convert the language used in Financial Statement into the language used in Taxonomy. Once the tagging of financial statement elements with the published taxonomy elements is done, the next step is to create the instance document.

Separate instance documents need to be created for the following:

1. Stand Alone Balance sheet of the company
2. Stand Alone Profit and Loss Account of the company
3. Consolidated Balance sheet of the company
4. Consolidated Profit and Loss Account of the company

The instance document should contain the financial information for both the current as well as the previous financial year. Consolidated balance sheet and Profit and Loss instance documents to be created only in case the same is applicable to the company.

VALIDATION OF FILE USING MCA VALIDATION TOOL

After successfully generating .xml file, the next step is to validate the file using MCA Validation Tool provided on MCA website. If errors occur then rectify the same in instance Document and try to validate the same again.

PRESCRUTINY OF FILE

After validating, the File is need to be Prescrutinize with the help of MCA Validation Tool. If no error occurs then Message displayed “No Prescrutiny errors occurred”. The File is ready to be uploaded.

E Forms

The Prescrutinized .XML file can be uploaded to the MCA site as an attachment with the eForm 23ACXBRL and eForm 23ACAXBRL after filling the same.

Authentication of XBRL Document:-

Earlier it was decided that only Statutory Auditors will certify the XBRL document. However, it was further clarified that CA / CS/ CWA in whole time practice can certify XBRL documents.

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