The Advantages of XBRL

XBRL, also known as eXtensible Business Reporting Language, is an open standard reporting language that was introduced with the intention of improving the quality of financial data reporting. It is a form of extensible markup language (XML) that is used across the globe today, and millions of XBRL documents are created each year. As a result, there are a wide number of regulators who have adopted XBRL over the past decade, including countries such as […]

XBRL for MCA: Software or Service?

XBRL has been embraced by various regulatory bodies across the world. In India, The XBRL wave started in late 2007 when ICAI initiated the idea of using XBRL in collaboration with the different regulators in India that control registered companies, banks, insurance undertakings and listed companies. The Ministry of Corporate Affairs (MCA) mandated that XBRL regulatory reporting include all companies (in phases) from 2011 and released the Commercial and Industrial (C&I) taxonomy for the generation […]

Ind AS vs. Indian GAAP: What are the key differences?

India is trying to move to the Indian IFRS accounting standards popularly known as Ind AS. This move will not be easy considering that Ind AS is rather different from the current Indian GAAP standards. Here are some highlights in the differences between the two standards that are bound to make the migration challenging. Taxonomy Generally, the Indian GAAP taxonomy has an estimation of 2500 elements. This is a small figure compared to the Ind […]

Ministry of Corporate Affairs to revise the taxonomies for XBRL filing in India

Ministry of Corporate Affairs (MCA) has incorporated two significant modifications this year with regard to the XBRL filings. They are: Revamping the taxonomy for Commercial Industrial (C&I) companies in order to synchronize with the changes as per Companies Act, 2013 and rules thereunder, and Upgrading the costing taxonomy in order to file the Cost Audit Reports under Companies (Cost Records and Audit) Rules, 2014 (the Rules). MCA is currently planning to replace the existing taxonomy […]

Myths about XBRL tagging

There are two myths about XBRL tagging: One, it is simple. Two, it is complicated. Both are not true. The first reaction of most CFOs is to treat this as one more exercise to be performed by finance/ accounting function and task an in-house resource to do the job. Though the incremental cost of such a decision is probably just the cost of the software tool required to prepare financial statements in XBRL format, the […]