Recapitulate…. Need for XBRL in India – To get data over information/Report. To bring standardization in Business Reporting for analysis by stakeholders. Use of data by Regulators for detecting irregularities in compliances.
IN XBRL ? Place for each item Net DeferredNet Block Tax Asset Plant Machinery NetDeposit Assets 7
What is XBRL..? X – eXtensible B – Business R – Reporting L – Language
What is XBRL..contd… Language For BUSINESS REPORTING.X in XBRL Stands for Extensible - No Relevant Tag found in Taxonomy we can create element name based on Properties of line Item. Powerful Version of XML. Puts content in right context.
Terms used in XBRLTAXONOMYTAGLINE ITEMELEMENT NAMELINK BASESINSTANCE DOCUMENTHYBERCUBES AND DIMENSIONS 10
Taxonomy Nomy : System of Rules, Laws or knowledge about a particular field Taxonomy : Rules or Knowledge of Taxes. Taxonomy : Science of Classifying Organisms. 11
INFORMATION IN XBRL TAG SUNDRY RECEIVABLES as on 31st March 2012 ELEMENT NAME- Data Type- Trade Receivable monetary BALANCE TYPE- PERIOD TYPE- Debit Instant DEFINITION-RECEIVABLES ARISING FROM SALE OF GOODS AND SERVICES ,PROVIDED IN NORMAL COURSE OF BUSINESS AND OUTSTANDING AS ON THE FINANCIAL STATEMENT DATE.
Line Item Vs Element Name(Standard Name) Line Item Element Name (Standard Name)
Presentation Linkbase Business reports are in identifiable data structures. e.g. Balance Sheet. Defines structure for displaying data + label. Manages relationship between Taxonomy elements. Hierarchy structure. 15
Label Linkbase Taxonomies represent business data in multiple languages. Lebel linkbase manages text associated with taxonomy element in various languages. Stores & links labels to respective elements. 16
Reference Linkbase Most elements refer to particular concepts in authoritative literature. Storage of source identification name & paragraph e.g. IAS, para 75. 17
Calculation Linkbase Defines basic calculation validation rules. Restricted to (+) or ( -). Trade Receivables = Receivables – Provision for doubtful debts 18
Definition Linkbase Defines additional rules attached to taxonomy elements, Defines relationship between reporting concepts. 20
INSTANCE DOCUMENT Instance Doc. has reported data with values & contexts. Electronic report of Financial Statement. The final generated XBRL output files
Taxonomy Extensions Adding some new elements. Dictionary is based on certain rules. How is it pronounced? Noun or verb? What it means? What are other meanings? Bazaar & Brahmin not in dictionary. Such wide use that included. Problems in US due to extended taxonomy. No extended Taxonomy in UK. India following same principle. 22
New Business Rules1.Parent- Child Relationship to be maintained with certain exception.2.Validations in the extended links shall be performed based on their applicability to the BS instance document or the P&L instance document.3. Inclusion of images/ charts/ graphs etc. shall not be allowed in the instance document.
New Business Rules…4. If any financial element is entered in CY then it shall be mandatory to enter corresponding PY with certain exception.5.Common element for specifying the opening and closing balance.6. Monetary values up to maximum 2 decimal places shall be allowed.
New Business Rules…7. Reporting currency should be INR in case of all financial elements except for the elements in Details of subsidiary.8. All dates entered in the instance document should be greater than or equal to the date of incorporation of the filing company with certain exception.MORE ABOUT BUSINESS RULES
APPLICABILITY- FY 2012-2012General Circular No. 16/2012 - Dated 06.07.2012FY Starts On Or After 1 Arp 2012All Listed Companies And Their Indian Subsidiary.All Companies Having Turnover Of 100 Cr. & Above.All Companies Having Paid Up Capital Of 5cr. & AboveAll Companies Who Were Required To File Their FY 2010– 2012 Using XBRL Mode
Pending Clarification ???? Banking Companies Insurance Companies Power Companies And Non-banking Financial Companies (NBFC) Are Exempted From XBRL Filing Till Further Order.
Time Limit Without Additional Fee All companies Covered in XBRL Upto 15th November, 2012 or within 30 days from the date of their AGM, whichever is later.
Implementation Process…..for select class of companies…. Understanding Taxonomy TAXONOMY DIVISION COMMERCIAL AND INDUSTRIAL AS PER REVISED SCHEDULE VI
Process cont…TAGGING Tagging Text Block Detailed Tagging tagging Scope of Detailed Tagging expected to get widened as Revised Schedule VI covers more item in Notes to Accounts and more emphasis has been put on Cross referencing and detailed disclosure…. 30
Practical Approach…contd.. Details of Related Parties PAN CIN Outstanding Balances Description of Related Party Transactions Other information Information about Subsidiaries, Investment in Joint Ventures, Associates etc. Check Minimum Tagging Requirements. Check Mandatory Items. Prepare Balance Sheet as per Taxonomy items.
Inference….. Revised Schedule VI is towards Standardization and disclosures which were missing earlier. Cross referencing of information in Notes to Accounts with so many disclosures make it easier for Regulator to check irregularities. If anything is left XBRL does X-RAY of information by using technology to go further deep into compliance irregularities.