an introduction to xbrl

An Introduction to XBRL : downloaded from www.catricks.tk

An Introduction to XBRL


XBRL : eXtensible Business Reporting

Language


• XBRL is an XML-based open-standard reporting language.

• It is a language used to code and bring MEANING and CONTEXT to financial information.


• XBRL provides a common, electronic format for business reporting.

• XBRL was developed specifically to communicate information between businesses and other users of financial information, such as analysts, investors and regulators.


• First envisioned in 1998 by Charles Hoffman.

• Developed by a non-profit consortium : XBRL inc. , backed by organizations, major companies and various government agencies throughout the world.


• It is not an Accounting Standard.• It is not a Computer Program.• It is not a “chart of accounts”.

What XBRL is NOT


Structure is King.


How XBRL works


• XBRL-enabled software can read XBRL data, because XBRL enables accountants to define each number behind the scenes, so that all the software can interpret it in the same way.

How XBRL Works


• Tagging– One of the most commonly used terms– Represents a line item– Gives data context and meaning– Opening and closing tags– Is machine readable– Gives structure to financial information

How XBRL Works


Ministry of Corporate Affairs,5th floor, Shastri Bhawan,Dr.R.Prasad Road,New Delhi,Delhi- 110001

Tel: 011 23073067

How XBRL Works<name> Ministry of Corporate

Affairs </name><address> <building> 5th Floor,

Shastri Bhawan </building><street> Dr. R. Prasad Road </street><city> New Delhi </city><state> Delhi </state><pincode> 110001 </pincode>

</address><telephone> 011 23073067

</telephone>


• XBRL Taxonomy:– Is a ‘dictionary’– Or a list of definitions.

How XBRL Works


A world with NO XBRL…


• Monolithic information



• Dependence on unstructured formats.



• Difficulty in creating and sharing of financial data.

A world with NO XBRL…Re-keying required!


• Corporate accounting scandals.



• In-depth analysis takes extremely long time.



In an XBRL world…


• Structured data.

In an XBRL world…


• Seamless creation and sharing.

In an XBRL world…No need to re-key!


• Transparent, comparable and reusable.

In an XBRL world…


• Good bye to scandals!

In an XBRL world…


• Near real-time analysis of data.

In an XBRL world…


• Comparison across jurisdictions.

In an XBRL world…


More advantages of XBRL


• Reduced costs• Improved access to financial

information.• Increased productivity• Improved data quality and validity.• Fluidity of shared information.

More advantages of XBRL


Implementation in India


MCA has mandated compulsory filing of financial statements (B/S, P/L, Director’s Report, etc) in XBRL format, for :

• All listed companies and their Indian subsidiaries

• All companies with paid up capital more than 5 crores

• All companies with turnover more than 100 crores



• However, banking companies, Power companies, Non Banking Financial Companies (NBFC) and Insurance companies are exempted from XBRL filing till further order.



Further, MCA has taken the following initiatives:

• Notification of XBRL Rules, 2011, Taxonomy and e-forms

• A “Validation Tool” to accept only complete and accurate XBRL document on MCA21 portal.



• No SA on the topic• SA 720 doesn’t deal with it

Implementation in IndiaAuditor’s Responsibility


• Examination of source document with the XBRL rendered document using relevant document reader in human readable form.

• Validation for errors using the MCA tool.• Notifying the management of any

exceptions observed (before filing).

Implementation in IndiaPractitioner’s Responsibility


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an introduction to xbrl

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