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XBRL is a language for communicating electronically, financial and business data for business reporting purpose. Rule 2 of Companies (Filing of documents and forms in XBRL) Rules, 2018 (“Rule”)defines XBRL as a standardized language for communicating via electronic means to report, express or file financial information by the companies under the Act. The system is developed by XBRL International Inc. (XII).

Our team of experts assists you in preparation of financial statements or consolidated financial statements in XBRL format and other supplementary services related to preparation of independent audit reports, handling litigations, if any. We have appropriate know-how and the requisite experience for undergoing such filings. Often, filing programs impose several constraints on documentation related to XBRL for data quality and compliance to local protocols. Our seasoned team of professionals can provide assistance with the definition of all these rules and regulations as well as render requisite services to ensure these are realized congruously. Also, we can offer software solutions to aid in preparation of compliance reports.

Our service portfolio includes the following:

  • Analysis of annual report information
  • Comparison of financials with XBRL standard checklist
  • Deriving additional data requisite as per XBRL Business Rules
  • Conversion of information in financial statements into XBRL format by tagging or mapping
  • XBRL pdf review by experts
  • Tagging accuracy and quality control checks
  • Validation of instance document through Ministry of Corporate Affairs (MCA) validation tool
  • Removal of all the validation errors
  • Pre-scrutiny of instance document through MCA validation tool
  • Certification of documents by professionals in practice
  • Monitoring successful filing of AOC-4 XBRL with MCA

Our team works on specific specialized software for undertaking XBRL filing.

Generally, following companies are mandatorily required for filing financial statements as well as their documents with Registrar in e-form AOC-4 XBRL:

  • Companies listed with stock exchanges in India and their Indian subsidiaries
  • Companies having paid-up capital of INR 5 crores or above
  • Companies having turnover of INR 100 crores or more
  • All companies which were covered under the above mentioned Rule

Therefore, companies coming under the purview stated under Rules shall file its financial statements and other documents in e-form AOC-4 XBRL. However, as per proviso to Rule 3, companies in sectors like insurance, banking, housing finance, non-banking financial companies and power sector companies are exempted from XBRL filing.

FAQs

What is XBRL filing?

XBRL (extensible Business Reporting Language) is a freely available and global framework for exchanging business information. XBRL allows the expression of semantic meaning commonly required in business reporting.

Is XBRL filing mandatory?

As Per the applicability of filing of financial statement into XBRL Rules, 2017, it is not mandatory for such companies to file financial statement into XBRL in future. It can file the normal AOC-4 form. Only Companies falling under XBRL Amendment Rules, 2017 required to file financial statement into XBRL.

What are the benefits of XBRL?

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 organizations can use XBRL to save costs and improve efficiency in handling business and financial information.

What documents are required to process the XBRL filing?

You need following documents to process the XBRL filing:

  • Financial Statements including Notes to Accounts
  • Significant Accounting Policies
  • Auditor’s report including that on CARO
  • Director’s Report
  • MGT-9
  • AOC-1, AOC-2, Secretarial Audit Report
  • Corporate Governance Report
  • Complete Annual Report.

What are the potential uses of XBRL?

XBRL can be applied to a very wide range of business and financial data. Among other things, it can handle:-

  • Company internal and external financial reporting.
  • Business reporting to all types of regulators, including tax and financial authorities, central banks and governments.
  • Filing of loan reports and applications; credit risk assessments.
  • Exchange of information between government departments or between other institutions, such as central banks.
  • Authoritative accounting literature – providing a standard way of describing accounting documents provided by authoritative bodies.

Does XBRL cause a change in accounting standards?

No. XBRL is simply a language for transmitting information. It must accurately reflect data reported under different standards – it does not change them.

Does XBRL benefit the comparability of financial statements?

XBRL benefits the comparability of financial statements by helping to identify data which is genuinely alike and distinguishing information which is not comparable.

Which companies are required for filing XBRL?

Following companies are required for filing XBRL:

  • Companies listed with stock exchanges in India and their Indian subsidiaries
  • Companies having paid-up capital of INR 5 crores or above
  • Companies having turnover of INR 100 crores or more
  • All companies which were covered under the e-form AOC-4

What services we offer under XBRL filing?

At MAS, we assist you in preparation of financial statements or consolidated financial statements in XBRL format and other supplementary services related to preparation of independent audit reports, handling litigations, if any. We have appropriate know-how and the requisite experience for undergoing such filings.

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