XBRL is a language for e-communication of financial and business data for business reporting. It is a standardized communication language in the electronic form to express, report, or file financial statements by Companies. However, XBRL is only a method of presentation or reporting. It does not attempt to make any changes in the content to be reported.
The full form of XBRL is “EXTENSIBLE BUSINESS REPORTING LANGUAGE”.
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:
However, Non-banking financial companies, Housing finance companies, and Companies engaged in the business of the Banking and Insurance sector are exempted from filing financial statements under these rules.
Moreover, the companies which have filed their financial statements in XBRL under section 137 shall continue to file their financial statements and other documents in XBRL only, though they may cease to fall under the class of companies specified above.
XBRL makes the data readable, with the help of two documents
Taxonomy defines the elements and their relationships based on the regulatory requirements. Using the taxonomy prescribed by the regulators, companies need to map their reports and generate a valid XBRL instance document. The process of mapping means matching the concepts as reported by the company to the corresponding element in the taxonomy. In addition to assigning XBRL tag from taxonomy, information like unit of measurement, period of data, the scale of reporting, etc. needs to be included in the instance document.
The following documents need to be filed in XBRL Format:
XBRL offers many benefits in the field of business reporting and analysis:
The use of XBRL is quite varied and wide. XBRL enables producers and consumers of financial data to switch resources away from costly manual processes, typically involving time-consuming comparison, assembly and re-entry of data.
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