XBRL in India - filing and applicability conditions

The full form of XBRL is eXtensible Business Reporting Language.

Introduction to XBRL

XBRL is a language for electronic communication of business and financial data which is revolutionising business reporting 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, 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 and NBFCs.

XBRL Applicability -Which class of companies has to file the Financial Statements in XBRL?

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 after 01.04.2011:-

(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 without any additional fee/penalty upto 15th November 2012 or within 30 days of the date of their AGM, whichever is later.

XBRL Taxonomies
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.

Benefits of XBRL
XBRL offers major benefits at all stages of business reporting and analysis. The benefits are seen in automation, cost saving, faster, more reliable and more accurate handling of data, improved analysis and in better quality of information and decision-making. All types of organisations can use XBRL to save costs and improve efficiency in handling business and financial information. Because XBRL is extensible and flexible, it can be adapted to a wide variety of different requirements. All participants in the financial information supply chain can benefit, whether they are preparers, transmitters or users of business data.

XBRL enables producers and consumers of financial data to switch resources away from costly manual processes, typically involving time-consuming comparison, assembly and re-entry of data. They are able to concentrate effort on analysis, aided by software which can validate and manipulate XBRL information.