About Xbrl – Its Applicability, Documentation

XBRL stands for Extensive Business Reporting Language which is becoming prominent as a standardized language for the communication and reporting of financial data of the business. It was developed to communicate information about the company to the investors, analysts and regulators. The motive of XBRL corresponds to the way a report is being presented. 

XBRL APPLICABILITY

All the below mentioned companies are required to file their
financial statements with the Registrar of Companies as per XBRL Taxonomy in
e-form AOC-4 XBRL
 

1.       Companies listed on stock exchange along with their Indian Subsidiaries.

2.       Companies having

Ø  Turnover of Rs 100 crores or more; OR

Ø Paid up capital of Rs 5 crores or more. 

Hence, XBRL reporting is not applicable on the below stated companies as they are exempt under XBRL rules.

1.       Non-banking financial companies (NBFC)

2.       Housing finance companies

3.       Companies engaged in the Banking business

4.       Insurance sector Companies 

DOCUMENTS REQUIRED FOR XBRL TAGGING

For XBRL tagging, you only need to update or tagg your financial data as mentioned in annual report of the company in XBRL format. By doing this XBRL instance document is to be prepared as per MCA Taxonomy (I-GAAP / IND-AS). 

Separate XBRL instance documents are to be prepared for both consolidated and standalone reports. 

Major Parts and annexure of Annual report used for XBRL tagging are as follows:

·        Balance Sheet

·        Profit and Loss Statement

·        Cash Flow Statement

·        Schedules and notes part of Balance Sheet and Profit and Loss Statement

·        Statement of Change in Equity

·        Audit Report along with annexure

·    Board Report along with annexure 

Upon the completion of the tagging process, a machine-readable document is generated for filing of AOC-4 XBRL. 

PROCESS OF CONVERSION OF FINANCIAL STATEMENT IN XBRL MODE IS AS UNDER:

Step1: create company database on XBRL software.

Step2: Data tagging in XBRL mode from financial statement

Step3: Create XBRL instance document

Step4: Download XBRL validation tool

Step5: validate the instance document with validation tool

Step6: Resolve error/ mismatch incurred (if any)

Step7: After resolving all the error, perform pre-scrutiny

Step8: Download instance document in XML format

Step9: Attach XML file of instance document to the Form AOC-4 XBRL

Step10: Filing of e-form AOC-4 XBRL on the MCA portal 

XBRL FILING: BENEFITS SORTED OUT

       It is a time-saving procedure

       Improves reporting process

       One can easily rely upon the accuracy and safety of data handling

       More analytical

       Refined way of communicating financial data

       Better decision-making

In brief, the use of XBRL has reduced manual labor to the core which used to be costly and time-consuming.

 TIMELINESS OF XBRL TAGGING 

It is to be done within 30 days from the date of annual general meeting of the company held for the financial year to which reporting relates and make this XBRL report as an attachment of AOC-4 XBRL.

Hence, tagging is to be done before filing of AOC-4 XBRL. 

Provisions relating to filing the financial statements in e-form AOC-4 XBRL with the Registrar are as:

SL
No.

Particulars

Filing
of financial statement

 

1.

 

Financial statement/  consolidated financial statements along with
its annexure and notes adopted at the AGM

Within 30 days of AGM along with requisite fees

2.

In case if financial statement not adopted at the AGM

Within 30 days of AGM along with requisite fees

3.

In case of an adjourned AGM

Within 30 days of the adjourned AGM along with requisite fees or
additional fees.

4.

If AGM is not held

Within 30 days of the due date of AGM along with requisite fees

 QUANTUM OF NORMAL FEE AND ADDITIONAL FEE FOR FILING OF FINANCIAL STATEMENTS 

Sl No.

Fee detail

Amount (In Rupee)

1.

Requisite/
Normal fee

Depend
upon the paid-up capital of the company

2.

Additional
fee (in case of delay filing)

Rs.
100/- per day from the 31st day of AGM/ due date of AGM to be held
up to the actual date of filing.

 ABOUT TAXLEGIT- YOUR ONE-STOP SOLUTION 

Taxlegit will assist you in day to day compliance and help to meet XBRL conversion requirements in timely and cost effective manner with 99.9% accuracy. You can reach to us at support@taxlegit.com.

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