Introduction To Structured Data Standard: XBRL Applicability
XBRL is “Extensible Business Reporting Language”, is an XML- based language for tagging financial data that enables the efficient process of business in sharing of data. XBRL applicability is given under the law. XBRL allows the user to present the financial information in a computer-readable format by tagging each unit of financial information with a subject identified through terms of accounting standards and tax concepts. It is the universal language used for communicating information through the internet. It was developed for easy communication between businesses and stakeholders. It is used for analysis and research to provide live status to its users. It is a worldwide accepted reporting language for business reporting. XBRL is based on XML coding and is a standardized way of transmitting financial records around the world. XBRL is not required by all the companies, However it is suggested that it will be used frequently in the future. The Ministry of Corporate Affairs (MCA) introduced XBRL filing of financial statements with the Registrar of Companies (RoC) through the MCA website. The Companies (Filing of documents and forms in extensible business reporting language) rules, 2011 provided that certain classes of companies have to mandatorily file their profit and loss accounts and balance sheets with the ROC. The Companies (Filing of documents and forms in extensible business reporting language) rules, 2017 mentioned that there are certain classes of companies that must do mandatory filing of their financial statements and other documents under Section 137 of the Companies Act,2013 with the ROC in e-form AOC-4 XBRL. XBRL is a language that allows electronic communication of business and financial information for reporting in the business. It is a standardized communication language that is used in an electronic format that allows you to present reports, files, or financial statements for Companies. But, XBRL does not provide any method of reporting or presentation. It doesn’t attempt to alter the report’s content. Below is the mentioned category of companies that must prepare their financial statements as well as other documents with the Registrar on E-form AOC-4 XBRL under MCA. However, non-banking financial institutions, Housing finance companies, and other companies involved in the Banking and Insurance sector are exempt from filing financial reports according to these rules. Additionally, those companies that are required to file financial statements to XBRL must continue to prepare their financial statements as well as additional documents using XBRL only, even though they could no longer belong to the category exempted from applicability of XBRL on companies mentioned above. Section 137 is a section for the applicability of XBRL under the Companies Act, 2013. XBRL is the open international standard for digital business reporting, managed by a global not-for-profit known as XBRL International. XBRL is used all over the world across more than 50 countries. It replaces paper-based reports with more efficient, improved accuracy, and reliability for those involved in supplying financial data. XBRL works with help of 2 documents:- 1. Taxonomy & ; 2. Instance document Taxonomy is defined as the elements and relationship between them based on the regulatory requirements. XBRL applicability can be with the help of taxonomy given by the regulators, businesses have to translate their reports to create an appropriate XBRL instance document. Mapping is matching the terms described by the company to the appropriate element of the taxonomy. In addition to assigning an XBRL tag from taxonomy details such as the units of measurement, the period of data, and the size of reporting should be included within the instance document. The following documents must be saved in XBRL Format: A company is required to furnish a cost audit report and other documents to the Central Government under sub-section (6) of section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014. It shall file such a report and other documents using the XBRL taxonomy given in Annexure – III for the financial years commencing on or after 01 April 2014 in E-Form CRA-4 specified under the rules. The company shall file Form AOC-4 XBRL within 30 days of the Annual General Meeting. Online XBRL will assist you during the whole process along with its professional team. Online XBRL is recognized for XBRL applicability by different bodies including MCA and ICAI. Online XBRL is a complete XBRL software solution that not only generates XBRL instance documents as per MCA Taxonomy but also provides most of the information-related credentials automatically. XBRL provides many advantages in the area of business analysis and reporting: The usage of XBRL allows easy transmission of data between businesses. XBRL lets both the producers and users of financial information shift resources away from expensive manual processes that typically involve long-winded comparison, assembly, and the re-entry of data. Overview of XBRL Applicability
About XBRL
XBRL Applicability Under the Companies Act,2013
Exemptions
XBRL Applicability Section
What is XBRL (eXtensible Business Reporting Language)?
How does XBRL Work?
XBRL Filing Requirements
Cost XBRL Applicability
XBRL Filing Due Date
Advantages of XBRL Applicability
For which company XBRL is applicable?
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