Seemant Shrivastav

Associate Partner – IxCFO Services P. Ltd

1st December 2012

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eXtensible Business Reporting Language

*XBRL is a member of the family of languages based on XML, or

Extensible Markup Language.

*XML is a standard for the electronic exchange of data between

businesses & on the internet.

*XBRL can simply be compared to a Bar Code, it bar codes

different kinds of business reporting information.

*XBRL provides an identifying code or “tag” for each individual

item of data

*This allows data to be treated intelligently by both humans &

machines

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*An XBRL document (instance document) is an XML document, conforming to the XBRL format

* It typically contains the information required in a single or more period financial report

*A collection of tags known as taxonomy are used to create instance documents

*Like a dictionary, taxonomy specifies the tags to be used, their meaning, their definitions and the relevant rules and formula sets

*Vide General Circular No: 16/2012 dated 6/7/12, MCA has

decided that companies falling in the following categories will

have to file their financial statements u/s 220 of the

Companies Act, 1956 using the XBRL taxonomy for financial

year commencing on or after 01.04.2011:-

*all companies listed with any Stock Exchange(s) in India and

their Indian subsidiaries; or

*all companies having paid up capital of Rupees five crore and

above; or

*all companies having turnover of Rupees one hundred crore

and above; or

*all companies who were required to file their financial

statements for FY 2010-11, using XBRL.

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MCA XBRL Mandate

Listed Companies

or their subsidiaries

Companies with paid up capital

of ` 5 crores or

more

Companies with

turnover of of ` 100 crores or

more

All companies who have filed in

XBRL in FY 10-11

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MCA XBRL Mandate excludes:

Banking Companies

Non Banking Financial

Companies

Insurance Companies

Power Companies

*Vide General Circular No: 34/2012 dated 25/10/12, MCA has

extended the last date to file financial statements in XBRL

mode without additional fee & penalty till 15th December 2012

or within 30 days from the date of Annual General Meeting of

the company whichever is later.

15th December 2012

30 Days from the date of AGM

Whichever is later

Compliance Timeline

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Compliance

Out sourced

Outsource to professionals

Outsource to companies

In house Develop in house

capabilities

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1 • Resource requisites

2 • Data requirements

3 • Mapping/Tagging

4 • Instance Creation

5 • MCA Validation & Filing

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*A good XBRL conversion software (eg Iris, Infosys, Stacos)

Verify the experience & credibility of vendor

Check on the efficacy of customer service & Tech support

Have a demo version/ demonstration of features before taking call

Check the vendor credentials with existing customers

Take a call on cost vs convenience. Options available are cloud based

services, conversion templates, desktop softwares.

*Capable & trained resource team to execute the conversion

*Regular team meetings & conversion project monitoring to

ensure timely completion

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List of Data/Documents that are required:

*Balance Sheet

*Statement of Profit & Loss

*Notes to Accounts

*Cash Flow Statement

*Directors’ Report

*Auditors’ Report

*Corporate Governance Report

*Statement u/s 212

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Applicable for ALL documents

*Ensure you have soft copy of files in Word/Excel as it is easier to copy / paste

*Ensure in Excel number format is general and not Accounting or Currency for monetary data to ensure better quality extraction & auto tagging (wherever available in Software)

Balance Sheet

*Confirm if values are in ‘actuals’ (not in millions, lakhs or crores)

*Confirm if this is prepared in Revised Schedule VI format especially Current / Non Current classification

*Fixed Assets are classified as Tangible / Intangible

*Confirm if notes numbers are available

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Statement of Profit and Loss

*Confirm if values are in ‘actuals’ (not in millions, lakhs or

crores)

*Confirm detailed break up of revenue & expenses are

available in the notes to accounts

*Confirm if EPS (basic & diluted) has been calculated

*Confirm if notes numbers are available

Cash flow Statement

* The Cash flow statement should be linked to P&L and

Balance Sheet to ensure correct classification of items as per

revised Schedule VI

*The requisite notes are available for Cash flow statement

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*The first step in creation of an instance document is to undertake tagging of the XBRL taxonomy elements with the various accounting heads in the books of accounts of the company.

*This would create the mapping of the taxonomy elements with the accounting heads so that the accounting information can be converted into XBRL form.

*Mapping is the process of comparing the concepts in the financial statements to the elements in the published taxonomy, assigning a taxonomy element to each accounting concept published by the company.

*Selecting the appropriate elements for some financial statement elements may require a significant amount of judgment.

*Therefore those in the company who are most familiar with the financial statements should be associated with mapping of accounting concepts to taxonomy elements.

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* It is to be noted that no extensions to the core Taxonomy will be

allowed

* Separate instance documents need to be created for the following:

(i) Stand Alone Balance sheet of the company

(ii) Stand Alone Profit and Loss Account of the company

(iii) Consolidated Balance sheet of the company

(iv) 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

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* Instance creation is the process of converting the tagged financial

information to xml format

* An instance document is a XML file that contains business reporting

information and represents a collection of financial facts and report

specific information using tags from the XBRL taxonomy.

* The instance creation process varies with the software being used

by the company

* It is to be noted that no extensions to the core Taxonomy will be

allowed

* The instance document should contain the financial information for

both the current as well as the previous financial year

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* Separate instance documents need to be created for the following:

(i) Stand Alone Balance sheet of the company

(ii) Stand Alone Profit and Loss Account of the company

(iii) Consolidated Balance sheet of the company

(iv) Consolidated Profit and Loss Account of the company

* Consolidated balance sheet and Profit and Loss instance documents to

be created only in case the same is applicable to the company

*Many element values have interdependence, please take notes in the

source document mentioning against which element you’re tagging

the value

* Ensure calculated fields are totalled correctly

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Snap shot of an Instance document

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Snap shot Validation process

1. Start the Validation tool

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Snap shot Validation process

2. Download the relevant taxonomy

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Snap shot Validation process

3. Load the instance documents

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Snap shot Validation process

4. Select validate option

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Snap shot Validation process

5. Analyse & rectify the errors with the help of software utility

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*The validation is complete when there are no errors

shown by validation tool and a confirmation on

validation pops up

*These instance documents should be saved and used for

filing the forms 23 AC-XBRL and 23 ACA-XBRL

*Once the above filing is done & acknowledgement

received from MCA; then the compliance requirements

of filing financial statements in XBRL mode is complete

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