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XBRL Filing

XBRL Filing

XBRL is a language used to communicate business and financial data electronically. It’s making a big change in the way businesses report information around the world. This language is helpful in many ways such as saving money, making things more efficient, and making the information more accurate and reliable. It’s already being used in many countries and is growing quickly.

XBRL is beneficial at every stage of business reporting and analysis. It helps to automate processes, save costs, and handle data more quickly and accurately. It also improves analysis and decision-making with better-quality information. With XBRL, people can save time and resources by using software to handle the information. This language is flexible and can be adjusted to meet specific business needs.

XBRL (Extensible Business Reporting Language) is a standardized format for tagging financial and business data in electronic documents. The use of XBRL in filing financial statements can provide benefits such as improved accuracy, faster processing, and easier analysis of data.

Indian companies with a paid-up capital of 5 crores or an annual turnover of 100 crores and listed on the stock exchange of India are required to file their financial reports using XBRL format. But if a company does not meet these criteria, it can choose to use XBRL.

Applicability of XBRL Filing for Companies

A company is required to file for XBRL in the following case

    1. All public companies listed on the stock exchange in India and their Indian subsidiaries.
    2. All businesses that have a turnover of Rs 100 crores or exceed.
    3. This means that any company with a paid-up capital of at least Rs 5 crores or more.

Documents Required for

XBRL Filing

  • Balance Sheet
  • PAN Card
  • Profit and Loss Statement
  • Cash Flow Statement
  • Notes to Accounts
  • The audit report if applicable
  • AOC-1, wherever applicable
  • Directors report if applicable
  • The secretarial Audit report, if applicable
  • Education Qualification of Shareholders and Directors
  • Consolidated Financial Statement, in case of subsidiary and associates
  • Related Party Transactions with PAN of the related party with nationality
  • And any other industry-specific documents

Benefits of

XBRL Filing

Improved Accuracy

XBRL eliminates manual data entry and transcription errors by standardizing financial information. It allows for the tagging of data using predefined concepts and definitions, ensuring accurate and consistent reporting.

Enhanced Efficiency

XBRL simplifies the process of data collection, analysis, and dissemination. It enables automated extraction, validation, and analysis of financial data, saving time and effort in preparing and reviewing financial reports.

Streamlined Reporting Process

XBRL standardizes financial reporting across different entities, jurisdictions, and reporting frameworks. This simplifies the process of creating and submitting financial statements, making it easier for organizations to comply with regulatory requirements.

Increased Transparency

XBRL facilitates the exchange and comparison of financial information between different stakeholders, including regulators, investors, analysts, and the public. It provides a standardized format that improves transparency, it easier to analyze and interpret financial data.

Cost Savings

By automating data collection and analysis processes, XBRL filing reduces the need for manual intervention and reduces the associated costs. It minimizes the errors and rework typically associated with manual reporting, leading to cost savings for organizations.

Improved Data Analysis and Decision Making

XBRL allows for easy extraction and analysis of financial data, enabling stakeholders to perform in-depth analysis and make informed decisions. It enables comparisons across time periods, industries, and companies, providing valuable insights for financial analysis and benchmarking.

Regulatory Compliance

Many regulatory bodies and government agencies require or encourage the use of XBRL for financial reporting. By adopting XBRL filing, organizations can ensure compliance with regulatory requirements and avoid penalties or non-compliance issues.

Better Investor Relations

XBRL enhances communication between companies and investors by providing standardized and easily understandable financial data. Investors can efficiently analyze and compare financial information, leading to improved investor confidence and better investor relations.

Global Standardization

XBRL is an internationally recognized standard for financial reporting. Its adoption promotes global consistency and comparability of financial information, making it easier for organizations to operate across borders and facilitate international investment and analysis.

How does XBRL run?

XBRL exhibits the data readable, through the guidance provided by two documents ⚜ Taxonomy and ⚜ Instance document XBRL is a useful tool for any organization to handle financial information better and save costs. It's a flexible tool that can adapt to various needs. Whether someone creates, sends, or uses business data, they can benefit from XBRL. With XBRL, it's easier to compare data because it identifies similar data and separates data that cannot be compared. Computers can handle this information and generate both standard and customized reports.

Government Fees

The Government fees for filing form AOC-4 XBRL are as follows:

  • If filled within 30 days of AGM, normal fees of Rs. 300/400/500/600 as the case may be.
  • Further, Additional fees levied shall be Rs. 100 per day in case the form is submitted after the due date. Kindly note that there is no limit on additional fees so levied.

XBRL Filing

Frequently Asked Questions

Ans. XBRL filing is important because it simplifies the collection, analysis, and dissemination of financial information. It improves data accuracy, streamlines reporting processes, enhances transparency, and facilitates regulatory compliance.
Ans. XBRL filing requirements vary by jurisdiction and regulatory bodies. Many countries, such as the United States, European Union members, and several Asian countries, have mandated XBRL filing for certain entities, including public companies, financial institutions, and regulatory bodies. It's important to check with the specific regulatory authorities in your jurisdiction to determine if XBRL filing is required.
Ans. While XBRL filing offers numerous benefits, there can be challenges in the implementation process, such as the initial investment in software and training, ensuring accurate tagging of data, and adapting to changes in regulatory requirements or taxonomy updates. It is important to plan and allocate resources properly and seek professional assistance if needed.
Ans. To find more information about XBRL filing, you can visit the websites of regulatory authorities, XBRL organizations, and industry associations involved in financial reporting. These sources often provide guidelines, tutorials, documentation, and resources to help organizations understand and implement XBRL filing effectively.
Ans. While financial statements are the most common use of XBRL filing, XBRL can also be used for various other types of business reports, such as regulatory filings, tax returns, sustainability reports, and industry-specific disclosures. XBRL's flexibility allows it to be applied to a wide range of reporting requirements.