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.
A company is required to file for XBRL in the following case
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.
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.
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.
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.
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.
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.
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.
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.
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.
The Government fees for filing form AOC-4 XBRL are as follows:
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