XBRL Filing, Application Process or Documents Required by Companies Act, 2013 with the Registrar in E-form AOC-4 XBRL
- XBRL is a language that is revolutionizing business reporting around the world for the electronic transmission of business and financial data.
- It offers significant advantages in business knowledge planning, cost saving, greater efficiency, and improved analysis and communication in delivering financial data.
- In various countries, it is already being put to practical use and XBRL implementations are growing rapidly around the world.
What is XBRL? Who developed XBRL?
It is built through a collaborative process between accountants and technologists from all over the world. Together, they developed XBRL International, which now consists of over 650 members, including multinational businesses, accounting, technology, government and financial services organizations. XBRL is and will be an open XML-based specification that is being implemented into several accounts.
XBRL is governed by which authority?
The MCA is the governing body for corporate law and related matters in India. From 2010-11, MCA introduced reporting requirements for different groups of companies to file their financial statements in XBRL format to enhance the consistency of statements, enable greater accountability and data comparability for all companies registered with MCA to file financial statements with MCA.
All you need to know about business registration in India
Who is Applicable for filing form XBRL?
Below mentioned class of companies shall file their financial statements and other documents under section 137 of the Companies Act, 2013 with the Registrar in E-form AOC-4 XBRL:
- All public companies listed in the stock exchange in India and their Indian subsidiaries.
- All companies with a turnover of Rs 100 crores or more.
- All companies with a paid up capital of Rs 5 crores or more.
- All the companies which are required to prepare their financial statements in accordance with the Companies (Indian Accounting standards) rules, 2015.
However, Non-banking financial companies, Housing finance companies and Companies engaged in the business of Banking and Insurance sector are exempted from filing of financial statements under these rules.
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In particular, companies which have submitted their financial statements to XBRL pursuant to section 137 shall continue sending their financial statements and other documents to XBRL only, although if they may cease to fall within the class of companies referred to above.
How does XBRL (EXTENSIBLE BUSINESS REPORTING LANGUAGE) work?
XBRL makes the data readable, with the help of two documents
- Taxonomy and
- Instance document
axonomy – The reporting-area specific hierarchical dictionaries used by the XBRL community are taxonomies. They define the specific tags, their attributes and their interrelationships that are used for individual data items (such as ‘net profit’). For various business reporting purposes, distinct taxonomies will be required. To represent local accounting and other reporting laws, some national jurisdictions will need to have their own reporting taxonomies. Taxonomies or taxonomy extensions can be needed by several different entities, including regulators, particular industries or even businesses, to cover their own unique business reporting needs.
A special taxonomy created and recommended by XII itself was also designed to facilitate the collection of systematic, drill-down data based on internal organizational reporting. This is the Global Ledger (GL) taxonomy.
What’s the Documents required for XBRL for MCA
The following Documents need to be filed in XBRL Format:
- Balance Sheet
- Profit and Loss Statement
- Cash Flow Statement
- Schedules related to Balance Sheet and Profit and Loss Statement
- Notes to Accounts
- Statement pursuant to Section 212 of the Companies Act, 1956 relating to subsidiaries
- Audit and Annual Report
What is the Benefits of XBRL?
XBRL offers many benefits in the field of business reporting and analysis:
- Improved way of reporting
- Automated data collection
- Reliable and accurate
- Cost effective
- Time saving process
- Analytical process
- Safe in data handling
- Helps in better decision making