An Introduction to
XBRL

An Introduction to XBRL : downloaded from
www.catricks.tk
XBRL :
eXtensible Business Reporting Language

An Introduction to XBRL : downloaded from
www.catricks.tk
• XBRL is an XML-based open-standard
reporting language.
• It is a language used to code and bring
MEANING and CONTEXT to ...
• XBRL provides a common, electronic format
for business reporting.
• XBRL was developed specifically to
communicate infor...
• First envisioned in 1998 by Charles Hoffman.
• Developed by a non-profit consortium : XBRL
inc. , backed by organization...
What XBRL is NOT
• It is not an Accounting Standard.
• It is not a Computer Program.
• It is not a “chart of accounts”.

A...
Structure is King.

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

An Introduction to XBRL : downloaded from
www.catricks.tk
How XBRL Works
• XBRL-enabled software can read XBRL data,
because XBRL enables accountants to define
each number behind t...
How XBRL Works
• Tagging
– One of the most commonly used terms
– Represents a line item
– Gives data context and meaning
–...
How XBRL Works
Ministry of Corporate Affairs,
5th floor,
Shastri Bhawan,
Dr.R.Prasad Road,
New Delhi,
Delhi- 110001
Tel: 0...
How XBRL Works
• XBRL Taxonomy:
– Is a „dictionary‟
– Or a list of definitions.

An Introduction to XBRL : downloaded from...
A world with NO XBRL…

An Introduction to XBRL : downloaded from
www.catricks.tk
A world with NO XBRL…

• Monolithic information

An Introduction to XBRL : downloaded from
www.catricks.tk
An Introduction to XBRL : downloaded from
www.catricks.tk
An Introduction to XBRL : downloaded from
www.catricks.tk
A world with NO XBRL…

• Dependence on unstructured formats.
An Introduction to XBRL : downloaded from
www.catricks.tk
A world with NO XBRL…
Re-keying required!

• Difficulty in creating and sharing of financial
data.
An Introduction to XBRL...
A world with NO XBRL…

• Corporate accounting scandals.
An Introduction to XBRL : downloaded from
www.catricks.tk
A world with NO XBRL…

• In-depth analysis takes extremely long time.

An Introduction to XBRL : downloaded from
www.catri...
An Introduction to XBRL : downloaded from
www.catricks.tk
In an XBRL world…

An Introduction to XBRL : downloaded from
www.catricks.tk
In an XBRL world…

• Structured data.
An Introduction to XBRL : downloaded from
www.catricks.tk
In an XBRL world…
No need to re-key!

• Seamless creation and sharing.
An Introduction to XBRL : downloaded from
www.catri...
In an XBRL world…

• Transparent, comparable and reusable.
An Introduction to XBRL : downloaded from
www.catricks.tk
In an XBRL world…

• Good bye to scandals!

An Introduction to XBRL : downloaded from
www.catricks.tk
In an XBRL world…

• Near real-time analysis of data.

An Introduction to XBRL : downloaded from
www.catricks.tk
In an XBRL world…

• Comparison across jurisdictions.
An Introduction to XBRL : downloaded from
www.catricks.tk
More advantages of XBRL

An Introduction to XBRL : downloaded from
www.catricks.tk
More advantages of XBRL
•
•
•
•
•

Reduced costs
Improved access to financial information.
Increased productivity
Improved...
Implementation in India

An Introduction to XBRL : downloaded from
www.catricks.tk
Implementation in India
MCA has mandated compulsory filing of
financial statements (B/S, P/L, Director‟s
Report, etc) in X...
Implementation in India
• However, banking companies, Power
companies, Non Banking Financial Companies
(NBFC) and Insuranc...
Implementation in India
Further, MCA has taken the following initiatives:
• Notification of XBRL Rules, 2011, Taxonomy
and...
Implementation in India
Auditor’s Responsibility
• No SA on the topic
• SA 720 doesn‟t deal with it

An Introduction to XB...
Implementation in India
Practitioner’s Responsibility
• Examination of source document with the
XBRL rendered document usi...
Thank you
Visit www.catricks.tk for more Downloads, Articles, News, Tips, Tricks
and Resources for CA Students

An Introdu...
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An Introduction to XBRL

  1. 1. An Introduction to XBRL An Introduction to XBRL : downloaded from www.catricks.tk
  2. 2. XBRL : eXtensible Business Reporting Language An Introduction to XBRL : downloaded from www.catricks.tk
  3. 3. • XBRL is an XML-based open-standard reporting language. • It is a language used to code and bring MEANING and CONTEXT to financial information. An Introduction to XBRL : downloaded from www.catricks.tk
  4. 4. • 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. An Introduction to XBRL : downloaded from www.catricks.tk
  5. 5. • 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. An Introduction to XBRL : downloaded from www.catricks.tk
  6. 6. What XBRL is NOT • It is not an Accounting Standard. • It is not a Computer Program. • It is not a “chart of accounts”. An Introduction to XBRL : downloaded from www.catricks.tk
  7. 7. Structure is King. An Introduction to XBRL : downloaded from www.catricks.tk
  8. 8. How XBRL works An Introduction to XBRL : downloaded from www.catricks.tk
  9. 9. 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. An Introduction to XBRL : downloaded from www.catricks.tk
  10. 10. 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 An Introduction to XBRL : downloaded from www.catricks.tk
  11. 11. How XBRL Works Ministry of Corporate Affairs, 5th floor, Shastri Bhawan, Dr.R.Prasad Road, New Delhi, Delhi- 110001 Tel: 011 23073067 <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> An Introduction to XBRL : downloaded from www.catricks.tk
  12. 12. How XBRL Works • XBRL Taxonomy: – Is a „dictionary‟ – Or a list of definitions. An Introduction to XBRL : downloaded from www.catricks.tk
  13. 13. A world with NO XBRL… An Introduction to XBRL : downloaded from www.catricks.tk
  14. 14. A world with NO XBRL… • Monolithic information An Introduction to XBRL : downloaded from www.catricks.tk
  15. 15. An Introduction to XBRL : downloaded from www.catricks.tk
  16. 16. An Introduction to XBRL : downloaded from www.catricks.tk
  17. 17. A world with NO XBRL… • Dependence on unstructured formats. An Introduction to XBRL : downloaded from www.catricks.tk
  18. 18. A world with NO XBRL… Re-keying required! • Difficulty in creating and sharing of financial data. An Introduction to XBRL : downloaded from www.catricks.tk
  19. 19. A world with NO XBRL… • Corporate accounting scandals. An Introduction to XBRL : downloaded from www.catricks.tk
  20. 20. A world with NO XBRL… • In-depth analysis takes extremely long time. An Introduction to XBRL : downloaded from www.catricks.tk
  21. 21. An Introduction to XBRL : downloaded from www.catricks.tk
  22. 22. In an XBRL world… An Introduction to XBRL : downloaded from www.catricks.tk
  23. 23. In an XBRL world… • Structured data. An Introduction to XBRL : downloaded from www.catricks.tk
  24. 24. In an XBRL world… No need to re-key! • Seamless creation and sharing. An Introduction to XBRL : downloaded from www.catricks.tk
  25. 25. In an XBRL world… • Transparent, comparable and reusable. An Introduction to XBRL : downloaded from www.catricks.tk
  26. 26. In an XBRL world… • Good bye to scandals! An Introduction to XBRL : downloaded from www.catricks.tk
  27. 27. In an XBRL world… • Near real-time analysis of data. An Introduction to XBRL : downloaded from www.catricks.tk
  28. 28. In an XBRL world… • Comparison across jurisdictions. An Introduction to XBRL : downloaded from www.catricks.tk
  29. 29. More advantages of XBRL An Introduction to XBRL : downloaded from www.catricks.tk
  30. 30. More advantages of XBRL • • • • • Reduced costs Improved access to financial information. Increased productivity Improved data quality and validity. Fluidity of shared information. An Introduction to XBRL : downloaded from www.catricks.tk
  31. 31. Implementation in India An Introduction to XBRL : downloaded from www.catricks.tk
  32. 32. 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 An Introduction to XBRL : downloaded from www.catricks.tk
  33. 33. Implementation in India • However, banking companies, Power companies, Non Banking Financial Companies (NBFC) and Insurance companies are exempted from XBRL filing till further order. An Introduction to XBRL : downloaded from www.catricks.tk
  34. 34. Implementation in India 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. An Introduction to XBRL : downloaded from www.catricks.tk
  35. 35. Implementation in India Auditor’s Responsibility • No SA on the topic • SA 720 doesn‟t deal with it An Introduction to XBRL : downloaded from www.catricks.tk
  36. 36. Implementation in India Practitioner’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). An Introduction to XBRL : downloaded from www.catricks.tk
  37. 37. Thank you Visit www.catricks.tk for more Downloads, Articles, News, Tips, Tricks and Resources for CA Students An Introduction to XBRL : downloaded from www.catricks.tk

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