The full form of XBRL is "eXtensible Business Reporting Language". Introduction
XBRL is a
language for e-communication of financial & business data for business reporting. It is revolutionising step taken by many countries around the world. It offers major benefits
to all those who have to create, transmit, use or analyse such information. XBRL
has been developed by XBRL International, Inc. (XII), a not-for-profit consortium of over
600 companies and agencies which is promoting its worldwide use.
The Institute of Chartered Accountants of India
(ICAI), the standards setting body has developed taxonomy for Commercial and
Industrial companies as per the provisions of Revised Schedule VI to the
Companies Act, 1956. It has been developed as per the IFRS architecture 2011.
XBRL India is developing taxonomies for specific
industries in consultation with the respective regulators viz. Insurance, Power
Applicability -Which class of companies has to file the Financial Statements in
Vide General Circular No: 16/2012 dated 6th July
2012, Ministry of Corporate Affairs has decided that companies falling in the
following categories will have to file their Balance Sheet and Profit &
Loss Account under section 220 of the Companies Act, 1956 using the Extensible
Business Reporting Language (XBRL) taxonomy for financial year commencing on or
(1) all companies listed with any Stock Exchange(s)
in India and their Indian subsidiaries; or
(2) all companies having paid up capital of Rupees
five crore and above; or
(3) all companies having turnover of Rupees one
hundred crore and above; or
(4) all companies who were required to file their
financial statements for FY 2010-11, using XBRL.
However, banking companies, Power companies, Non
Banking Financial Companies (NBFC) and Insurance companies are exempted from
XBRL filing till further order.
All XBRL filing companies are allowed to file
their financial statements in AOC 4 XBRL without any additional fee upto 30th
November 2015. This relaxation has been given in light of the new forms coming into effect for the first time this year.
Taxonomies are dictionaries used by XBRL. They
define the specific tags for individual items of data (such as "net
profit"). Different taxonomies will be required for different financial
reporting purposes. Different XBRL jurisdictions may have their own financial
reporting taxonomies to reflect their local accounting regulations. Many
different organisations, including regulators, specific industries or even
companies, may require taxonomies to cover their own business reporting needs.
XBRL - Potential Applications
use of XBRL is quite varied and wide; it can be used in many places especially
in reporting financial and business date of organisations. Some
of these applications of XBRL are mentioned herein:
of business data to statutory authorities like central govt., state govt.,
banks, tax authorities.
exchange between government authorities or departments of one country with
other or internally in the country.
of financial data – both internal and external.
of loan applications and reports; credit risk assessments.
accounting literature – providing a standard way of describing accounting
documents provided by authoritative bodies.
many benefits in the field of business reporting and analysis.