XBRL is extensible Business Reporting Language, it need to be filed by entities as defined in Section 137 of Companies Act 2013. This XBRL filing is required to be made as per XBRL Amendment Rules 2017.
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XBRL International (abbreviated as XII) is an international standards organisation which is founded by American Institute of Certified Public Accountants (AICPA) in 1998. XBRL International has developed an open source XBRL Software which is used for financial reporting of business. International XBRL consortium is supported by more than 650 members including leading organisations world-wide.
XBRL stands for eExtensible Business Reporting Language. It use xml based platform, this xml based platform is followed by corporate which helps in formulation and analysis of financial reporting.
XBRL use to digitize the financial reporting on a common platform. Due to widespread use of this common platform, different user of financial statement such as Regulators, Government, Tax Authorities, analysts and investors are able to generate and use the financial reporting information as per their need and requirement.
Due to the common based platform, analysis and comparability of the financial statement became easier and handy.
Benefits of XBRL are:
- It use to digitize the business financial reporting and make it available on more transparent commonly used platform.
- XBRL based financial statement help communicate between business and users of financial information.
- Due to common based platform, financial reporting of the business can be reviewed more frequently using better information and benchmark techniques.
- Analysts and investors can able to test the financial reporting against a set of business and logical rules, this helps them to capture correct information and avoid mistakes at their end.
- Due to common based platforms, it makes user of financial information confident as it has pre-defined set of definitions and sophisticated use of presentation.
Functionality of XBRL
XBRL use two type of documents which make the financial reporting data in readable format. These two type of documents are Taxonomy and Instance Document.
Taxonomy is a predefined area wherein the data of financial reporting need to be entered. These predefined area are set as per the specific hierarchical reporting of financials. This help to procure the data in specific set of elements for the purpose of generating predefined financial reporting as required.
Instance Document are the business reports which are stored in electronic form. It works on the technology of bar code reader, Instance document contain code for tags and the structure that belong to tagged data. Firstly Data need to be tagged to xbrl and to create xbrl file, this data is surrounded by tags, to create xbrl file each piece of business data mapped with taxonomy.
Users of XBRL
- Financial regulators that need significant amounts of complex performance and risk information about the institutions that they regulate
- Securities regulators and stock exchanges that need to analyse the performance and compliance of listed companies and securities, and need to ensure that this information is available to markets to consume and analyse
- Business registrars that need to receive and make publicly available a range of corporate data about private and public companies, including annual financial statements
- Tax authorities that need financial statements and other compliance information from companies in order to process and review their corporate tax affairs
- Statistical and monetary policy authorities that need financial performance information from many different organisations
- Companies that need to provide information to one or more of the regulators mentioned above
- Enterprises that need to accurately move information around within a complex group
- Supply chains that need to exchange information to help manage risk and measure activity
- Government agencies that are simplifying the process of businesses reporting to government and reducing red tape, by either harmonising data definitions or consolidating reporting obligations (or both)
- Government agencies that are improving government reporting by standardising the way that consolidated or transactional reports are prepared and used within government agencies and/or published into the public domain
- Specialist data providers that use performance and risk information published into the market place and create comparisons, ratings and other value-added information products for other market participants
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your XBRL Filing and thereafter will provide you detailed analysis mentioning the law requirement and compliance need to fulfill in order to operate it economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.