Connect with us +91 966 777 9615
eXBRL, or eXtensible Business Reporting Language, is a global standard used for electronic business communication, enabling accurate tagging and sharing of financial statements. It allows companies to efficiently compare and analyze financial data, making it easier for stakeholders to access and interpret essential information. By streamlining the dissemination of financial reports, eXBRL helps improve transparency and decision-making across organizations worldwide.
eXBRL is used by:
Standardization:
eXBRL provides a standardized framework for financial reporting, which allows benefits like consistent tagging of data and facilitating comparability along with understanding of financial statements.
Extensible:
eXBRL enables flexibility tailored to specific reporting requirements. It can customize taxonomies defining specific elements of financial reports to meet the varied needs of industries, regulators, and countries.
Data Tagging:
eXBRL allows the structuring of financial data with metadata, which makes the data machine-readable and more accessible to analyze and retrieve.
XML-Based:
Being based on XML (eXtensible Markup Language), it allows data to be both human-readable and machine-readable, enabling successful integration and automation of financial reporting processes.
Regulatory Compliance:
A majority of regulatory authorities choose the eXBRL format as a standard format for financial reports for consistency and accessibility.
Data Quality and Accuracy:
By automating data collection and reporting processes, XBRL reduces the likelihood of errors and inconsistencies, along with enhancing the quality and reliability of financial data.
eXBRL applies to:
All companies are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015
However, there are certain exceptions to this rule. The following companies are exempt from filing financial statements with the ROC in eXBRL Taxonomy:
It is pertinent to note that once a company has filed its financial statements using eXBRL, it must continue to do so in subsequent years, regardless of whether it still meets the initial criteria for filing in eXBRL.
eXBRL (eXtensible Business Reporting Language) offers various benefits for financial reporting and business data management. Here are some key advantages:
Enhanced Accuracy:
Automated data tagging using eXBRL allows consistent and accurate financial data with minimum risk of errors caused by manual data entry.
Increased Efficiency:
The use of eXBRL streamlines the reporting process by allowing easy reusability for various reports and filings, saving users time and effort.
Improved Comparability:
eXBRL facilitates standardized tagging, which makes financial data more accessible to compare across companies and periods.
Better Data Analysis:
eXBRL makes data analysis and extraction efficient for analysts and stakeholders through the proper structuring of financial data.
Regulatory Compliance:
Since many regulatory authorities and financial institutions require eXBRL filings, compliance is ensured, and the risk of regulatory issues is reduced.
Enhanced Transparency:
eXBRL enhances transparency by providing clear, structured, and detailed financial information, which can build trust with investors, analysts, and other stakeholders.
Taxonomy Definition: A taxonomy is a dictionary of financial terms and concepts used in eXBRL. It defines the elements of financial statements and how they should be tagged. Taxonomies can be specific to industries or regulatory bodies.
Instance Document Filing: An eXBRL instance document contains the actual financial data tagged according to the relevant taxonomy. This document is submitted to regulators or other stakeholders and can be easily parsed and analyzed by software.
Validation Compliance Checks: Before submission, eXBRL instance documents are validated against the taxonomy to ensure that they adhere to the required structure and data integrity rules.
Following are some of the documents that are required to be attached to the E-form AOC-4 XBRL:
Financial Statements: Complete and accurate financial statements, including:
Annual Report: The full annual report of the company, which includes the financial statements and other relevant information.
Tax Filings: Details related to tax compliance, including tax return forms if applicable.
Audit Reports: Reports from external auditors verifying the accuracy and compliance of the financial statements.
eXBRL Taxonomy: The taxonomy or classification system specific to the industry or jurisdiction that defines how financial information should be tagged and reported in eXBRL.
Other Supporting Documents: Any additional documents or disclosures that may be required by the regulatory authority.
| Name of E-form | Purpose of E-form | Due date of Filing | Due date for FY 2023-24 |
| Form AOC-4 (XBRL) | Filing of Annual Accounts in XBRL mode | 30 days from the conclusion of the AGM | 29 October 2024 (If AGM held on 30 September, 2024) |
| Form AOC-4 (XBRL) for IND AS based Financial Statement | Filing of Annual Accounts based on Indian Accounting Standards in XBRL mode | 30 days from the conclusion of the AGM | 29 October 2024 (If AGM held on 30 September, 2024) |
| Form CRA-4 | Filing of Cost Audit Report | 30 days from the receipt of Cost Audit Report | 30 days from the receipt of Cost Audit Report |
| Form AOC-4 (NBFC) IND and Form AOC-4 CFS (NBFC) IND | Filing of Annual Accounts based on Indian Accounting Standard for Non-Banking financial institutions NBFC | 30 days from the conclusion of the AGM | 30 days from the conclusion of the AGM |
Conclusion
eXBRL (eXtensible Business Reporting Language) aims to align with the modern needs of data communication by enhancing accuracy, efficiency, and transparency. It ensures a standardized approach to data communication by offering error deduction and detailed data analysis, thus making it a valuable tool to revolutionize business reporting.
At Mercurius, we aim to offer professional service to all of our clients with eXBRL tagging and reporting requirements. For more information, connect with us.
