XBRL, abbreviation for eXtensible Business Reporting Language, is an XML-based language for tagging financial data that enables business to efficiently process and share their data. XBRL allows the presentation of financial information in a computer readable format. This is achieved by tagging each piece of financial information with a label that identifies it in terms of standard accounting or tax concepts.
iXBRL, or inline XBRL, is a more recent version of the language which allows financial information to be presented in a format that is both human readable and machine readable.
On June 7, 2011 the Ministry of Corporate Affairs (MCA) mandated the filing of the annual financial statements in XBRL format for all the financial statements prepared for the period starting from 31st March 2011 (i.e. from the financial year 2010-11). .
To facilitate acceptance of XBRL report MCA has set up the MCA21 system that will allow data automatically entered into systems without the need to re-key, re-format or introduce other "translation" efforts.
The following class of companies shall file their financial statements and other documents in e-form AOC-4 XBRL
The financial statements which should be converted to XBRL format include statement of financial position (balance sheet), statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows and Notes comprising of a summary of accounting policies and other explanatory information.
Company level extensions are not allowed while submitting XBRL data to MCA. Separate instance documents to be prepared for consolidated and standalone reports.
Every business entity that is required to file their annual returns must prepare their financial statements in XBRL format after the end of its financial year. They should file the financial statements within 30 days after the annual general meeting.
If a company fails to file the copy of the Financial Statements in XBRL format to MCA within prescribed time limit, it is liable to attract penalty.
Companies have multiple options to consider when it comes to preparing their XBRL reports. The best option will depend on the resources available in house.
