Getting started with mca reports (in xbrl format) | Tally Corporate Services | Tally Features | Tally Support

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Getting started with mca reports (in xbrl format) | Tally Corporate Services | Tally Features | Tally Support

  1. 1. Getting Started withMCA Reports (in XBRL Format)
  2. 2. The information contained in this document is current as of the date of publication and subject to change. Because Tally must respondto changing market conditions, it should not be interpreted to be a commitment on the part of Tally, and Tally cannot guarantee theaccuracy of any information presented after the date of publication. The information provided herein is general, not according toindividual circumstances, and is not intended to substitute for informed professional advice.This document is for informational purposes only. TALLY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THISDOCUMENT AND SHALL NOT BE LIABLE FOR LOSS OR DAMAGE OF WHATEVER NATURE, ARISING OUT OF, OR INCONNECTION WITH THE USE OF OR INABILITY TO USE THE CONTENT OF THIS PUBLICATION, AND/OR ANYCONDUCT UNDERTAKEN BY PLACING RELIANCE ON THE CONTENTS OF THIS PUBLICATION.Complying with all applicable copyright and other intellectual property laws is the responsibility of the user. All rights includingcopyrights, rights of translation, etc., are vested exclusively with TALLY SOLUTIONS PRIVATE LIMITED. No part of this documentmay be reproduced, translated, revised, stored in, or introduced into a retrieval system, or transmitted in any form, by any means(electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of TallySolutions Pvt. Ltd.Tally may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in thisdocument. Except as expressly provided in any written licence agreement from Tally, the furnishing of this document does not give youany licence to these patents, trademarks, copyrights, or other intellectual property.© 2011 Tally Solutions Pvt. Ltd. All rights reserved.Tally, Tally 9, Tally9, Tally.ERP, Tally.ERP 9, Shoper, Shoper 9, Shoper POS, Shoper HO, Shoper 9 POS, Shoper 9 HO,TallyDeveloper, Tally Developer, Tally.Developer 9, Tally.NET, Tally Development Environment, Tally Extender, Tally Integrator,Tally Integrated Network, Tally Service Partner, TallyAcademy & Power of Simplicity are either registered trademarks or trademarks ofTally Solutions Pvt. Ltd. in India and/or other countries. All other trademarks are properties of their respective owners.Version: Getting Started with MCA Reports in Tally.ERP 9/Release 3.3/December 2011
  3. 3. ContentsIntroduction XBRL Data Structure ................................................................................................................................ 1 XBRL Format for Reporting in India ....................................................................................................... 2 Preparation & Filling of Financial Reports in XBRL Format .................................................................. 3 Steps for Filing Financial Statements in XBRL form in MCA21 System ............................................................. 3 Features of MCA Reports in Tally.ERP 9 ................................................................................................ 4Lesson 1: Enabling MCA Reports in Tally.ERP 9 1.1 Enabling MCA Reports in Tally.ERP 9 ............................................................................................ 5 1.1.1 Generating reports in XBRL format .......................................................................................................... 6Lesson 2: Configure List of Accounts 2.1 Configure MCA Taxonomy Elements .............................................................................................. 8 2.2 Profit and Loss Adjustments & Appropriations ............................................................................. 12 2.2.1 Profit and Loss Adjustments & Appropriations are already accounted in the Books of Accounts ......... 13 2.2.2 Profit and Loss Adjustments & Appropriations are not accounted in the books of Accounts ................. 14 2.2.3 Earnings Per Share Calculation .............................................................................................................. 18 2.3 Cash Flow Statement ...................................................................................................................... 18 2.3.1 Prepare Cash Flow Statement in Tally.ERP 9 ........................................................................................ 19 2.3.2 Disclose Details in Cash Flow Statement Manually or Auto Fill ........................................................... 22 2.4 Select Previous Year Company ...................................................................................................... 24 2.4.1 Restore Mapped List of Accounts ............................................................................................................ 25 2.5 View Checklist................................................................................................................................ 26 2.6 Configure Mandatory Information .................................................................................................. 27 2.6.1 Balance Sheet ........................................................................................................................................... 27 2.6.2 Cash Flow Statement ............................................................................................................................... 31 2.6.3 Company Information .............................................................................................................................. 32 2.6.4 Profit and Loss Account ........................................................................................................................... 33 2.6.5 Show Unmapped List of Accounts ........................................................................................................... 34Lesson 3: Configure Additional Details 3.1 General Information ........................................................................................................................ 36 3.2 Details of Inventories ...................................................................................................................... 39 3.3 Details of Turnover ......................................................................................................................... 40 3.4 Accounting Policies and Basis of Presentation............................................................................... 40 3.5 Changes in Accounting Policies and Estimates .............................................................................. 45 3.6 Events occurring after Balance Sheet Date ..................................................................................... 46 3.7 Foreign Exchange Transactions ...................................................................................................... 47 3.8 Government Grants and Subsidies ................................................................................................. 48 3.9 Amalgamation ................................................................................................................................. 49 i
  4. 4. Content 3.10 Employee Benefits ........................................................................................................................ 50 3.11 Segment Reporting ...................................................................................................................... 51 3.11.1 Primary Segments .................................................................................................................................. 52 3.11.2 Secondary Segments .............................................................................................................................. 53 3.12 Related Parties ............................................................................................................................. 53 3.12.1 Related Party Transactions ................................................................................................................... 54 3.13 Leases ............................................................................................................................................ 56 3.14 Earnings per Share ........................................................................................................................ 57 3.15 Subsidiary Information ................................................................................................................ 58 3.16 Deferred Tax Assets and Liabilities ............................................................................................. 60 3.17 Investment in Associates .............................................................................................................. 61 3.18 Investment in Joint Venture .......................................................................................................... 62 3.19 Discontinuing Operations ............................................................................................................. 63 3.20 Intangible Assets ........................................................................................................................... 64 3.21 Impairment of Assets ................................................................................................................... 65 3.22 Provisions and Contingencies ...................................................................................................... 66 3.23 Cash Flow Statement and Balances .............................................................................................. 67 3.24 Foreign Bank Balances ................................................................................................................. 68 3.25 Due to MSME ............................................................................................................................... 68 3.26 Directors and Remuneration to Directors ..................................................................................... 71 3.27 Other Disclosures.......................................................................................................................... 72 3.28 Auditors Report ............................................................................................................................. 73 3.29 Auditors’ Information ................................................................................................................... 74 3.30 Directors Report ............................................................................................................................ 75 3.31 Signatories of Balance Sheet ........................................................................................................ 76 3.31.1 Details of Directors Signing Board Report ........................................................................................... 77 3.31.2 Details of Managers Signing Balance Sheet ......................................................................................... 78 3.32 Prior Period, Extraordinary And Exceptional Items ..................................................................... 79 3.33 Share Capital ................................................................................................................................. 80 3.33.1 Additional Information Relating to Share Capital ................................................................................ 81 3.33.2 Details of every class of Share Capital issued during period ............................................................... 82 3.34 Additional Information Relating to Balance Sheet Items ............................................................. 83 3.34.1 Details of Debentures ........................................................................................................................... 84 3.35 Miscellaneous Information ........................................................................................................... 85 3.36 Additional Details for the Tangible Assets ................................................................................... 86 3.37 Additional Details for the Intangible Assets ................................................................................. 91 3.38 Details of Deferred Tax ................................................................................................................ 92 3.39 Specify Report .............................................................................................................................. 93 3.40 Update Status ................................................................................................................................ 93Lesson 4: Generate and Validate MCA Reports 4.1 Generate MCA Reports .................................................................................................................. 95 ii
  5. 5. Content 4.2 Validate MCA Reports ................................................................................................................... 97 4.2.1 Validation Process ................................................................................................................................... 97 4.2.2 Pre-scrutiny Process ............................................................................................................................. 100 4.2.3 Export to PDF Process .......................................................................................................................... 100 4.2.4 Attach instance document to the Form 23AC-XBRL and Form 23ACA-XBRL ..................................... 102 4.2.5 Submitting the Form 23AC-XBRL and Form 23ACAXBRL on the MCA portal ................................... 102Lesson 5: MCA Reports 5.1 Balance Sheet ................................................................................................................................ 104 5.1.1 Non Mapped Ledgers ............................................................................................................................. 105 5.2 Profit & Loss Statement ................................................................................................................ 107 5.2.1 Non Mapped Ledgers ............................................................................................................................. 108 5.3 Cash Flow Statement .................................................................................................................... 110 5.4 Other Reports ................................................................................................................................ 111 5.4.1 Fixed Assets Details ............................................................................................................................... 111 5.4.2 Product and Services ............................................................................................................................. 112 5.4.3 Details of Goods .................................................................................................................................... 117 5.4.4 Raw Materials Details ........................................................................................................................... 121 iii
  6. 6. IntroductionXBRL is a language for the electronic communication of business and financial data which is rev-olutionizing business reporting around the world. XBRL stands for eXtensible BusinessReporting Language. It is one of a family of XML languages which is becoming a standardmeans of communicating information between businesses and on the internet.XBRL was developed to facilitate electronic exchange of Business reporting Data across variouscomputer platforms. It supports the preparation, analysis and communication of business informa-tion. It also offers the benefits like:  Cost Saving  Greater Efficiency  Improved accuracy and Reliability  Greater TransparencyXBRL is being developed by an international non-profit consortium of approximately 450 majorcompanies, organisations and government agencies. It is a freely available, market driven, open,global standard language. It is already being put to practical use in countries like USA, UK, Aus-tralia, China, etc.XBRL Data StructureXBRL provides business data on machine readable XML format with the help of Taxonomy andInstance Document.Taxonomies are dictionaries used by XBRL. They define the elements (specific tags) for individ-ual items of data (such as "net profit") and their interrelationship as per the regulatory require-ments. Different taxonomies will be required for different financial reporting purposes. DifferentXBRL jurisdictions may have their own financial reporting taxonomies to reflect their localaccounting regulations. Many different organisations, including regulators, specific industries oreven companies, may require taxonomies to cover their own business reporting needs.Besides assigning XBRL tag from taxonomy, information like unit of measurement, period of data,and scale of reporting etc. needs to be included in the instance Document. Once the taxonomy isdetermined in compliance with applicable regulations, the companies are required to generatevalid XBRL Instance Document. 1
  7. 7. IntroductionXBRL Format for Reporting in IndiaDue to globalisation of businesses, the users of financial information of the business is spreadacross the globe. For the purpose of making the reported financial information usable across theglobe, one common reporting language XBRL was introduced. This is universally adoptedcomputer readable language for reporting the financial information. Using this, any financialreports can be viewed in the common format using XBRL in the prescribed format.In order meet the universal requirements, India also adopted the practice and introduced theconcept of using XBRL for Financial Reporting. As a part of this initiation, On June 7, 2011 theMinistry of Corporate Affairs (MCA) mandated the filing of the annual financial statements inXBRL format for all the financial statements prepared for the period starting from 31st March 2011(i.e. from the financial year 2010-11).As per the MCA circular, the following is the eligibility criteria for filing the financial statements inXBRL in the format prescribed in the Taxonomy published by the MCA.  All listed companies including their Indian subsidiaries (but excluding the overseas subsidi- aries)  Companies having a paid up capital of more than Rs. 5 crore or turnover of Rs.100 crore or aboveIn the first phase Banking, Insurance, Power, and Non-Banking Financial Companies (NBFC) areexempted from submitting financial report in XBRL Format.Now, Indian companies can use internationally accepted reporting format – XBRL to save costsand streamline their processes for collecting and reporting financial information. Consumers offinancial data, including investors, analysts, financial institutions and regulators, can receive,discover, compare and analyse data much more rapidly and efficiently if it is in XBRL format. Italso assists to access non-financial information like supplier data, customer application forms,project data, employee information, regulatory submissions, and Management InformationSystem on the company.To assist and manage XBRL Reporting, Ministry of Corporate Affairs has set up e-governanceweb portal – Ministry of Corporate Affairs – XBRL (http://www.mca.gov.in/XBRL/index.html). 2
  8. 8. IntroductionPreparation & Filling of Financial Reports in XBRL FormatCompanies incorporated under the Companies Act 1956, are required to file returns with theRegistrar of Companies (ROC) every year. Ministry of Corporate Affairs (MCA) mandated thecompanies to file the annual financial statements in XBRL format for the Year 2010-11 onwards.As per the MCA circular, the following is the eligibility criteria for filing the financial statements inXBRL in the format prescribed in the Taxonomy published by the MCA.  All listed companies including their Indian subsidiaries (but excluding the overseas subsidi- aries)  Companies having a paid up capital of more than Rs. 5 crore or turnover of Rs.100 crore or aboveAssessees who are submitting their financial statements to the MCA as a part of their statutorycompliance, need to (who have computerized systems in place) and can) generate their financialreports in XBRL and submit to MCA. (from their existing application/product/tool). Department hasgiven the process to prepare financial reports in XBRL in the format as prescribed in a Taxonomy,and provided a tool to validate the reports and upload the reports to MCA21 system.Steps for Filing Financial Statements in XBRL form in MCA21 System1. Create XBRL Instance Document  Map company’s financial element to corresponding element in taxonomy  Create the XBRL instance document for Balance Sheet and Profit & Loss Account  Review and verify the Instance Document2. Download the XBRL Validation Tool form MCA Portal3. Validate the XBRL instance document and to be certified by any of the members of ICAI, ICWAI and ICSI who are in whole time practice.4. Perform pre-scrutiny of the validated instance document through the tool (to perform pre-scru- tiny, enterprises should have a working internet connection)5. Attach the Instance Document to the Form 23AC and 23ACA6. Submit/Upload the Form 23AC and Form 23ACA on the MCA portal XBRL Validation Tool is provided by MCA to validate the XBRL instance docu- ment generated by IT vendors / IT departments from their respective products/ tools. Form 23AC - Form for e-filing Balance Sheet with the Registrar Form 23ACA - From for e-filing Profit & Loss Account with the registrar 3
  9. 9. IntroductionFeatures of MCA Reports in Tally.ERP 9Meeting all the requirements of MCA - XBRL Reporting, Tally.ERP 9 provides the option togenerate the financial reports in XBRL format with a click of a button.Features of generating MCA Reports (XBRL Format) in Tally.ERP9 are:  Easy to enter Company’s information (Financial & Non-financial), Audit and Director Report information with proper categorization of information.  Company Chart of Accounts (COA) with suggested mappings to respective elements of MCA Taxonomy.  Simple procedure/configuration for Grouping or Re-grouping of COA with Taxonomy Ele- ments as per the user choice.  Option to check (only) the Mandatory fields for proper validation as per Taxonomy Business Rules.  Facility to fill previous year data, if Books of Accounts are maintained manually.  Single report to check that all the required information to generate valid MCA Reports - Checklist for Generation of Reports.  Generate MCA Reports with a click of a button.  Generate Balance Sheet, Profit & Loss A/c and Cash Flow Statements. MCA Reporting is a default feature available in Tally.ERP 9. For generating MCA reports the subscription rates are as follows: Till March 31, 2012 - Zero rate with Tally.Net subscription.  From April 1, 2012 - Users have to subscribe for MCA Reports Service in addition to Tally.NET which will have the validity period as that of Tally.NET. To subscribe MCA Reports Service, click on Ctrl+S: Shop button or press Ctrl+S keys to navigate to Shop screen to buy the MCA Reports Service.For generating MCA Reports from Tally.ERP9, let us take the example of ABC Company. 4
  10. 10. Lesson 1: Enabling MCA Reports in Tally.ERP 91.1 Enabling MCA Reports in Tally.ERP 9Enabling MCA Reports is a simple and easy process.To enable MCA Reports Feature in Tally.ERP 9, follow the steps given below:Go to Gateway of Tally > F11: Features > Statutory & Taxation Features  Set the option Enable MCA Reports to Yes Figure 1.1 Enabling MCA Reports 5
  11. 11. Enabling MCA Reports in Tally.ERP 91.1.1 Generating reports in XBRL formatGenerating reports in MCA-XBRL format is a Three step process in Tally.ERP 9.  Ensure the values for Mandatory Fields  Map Tallly.ERP 9’s Default Groups to MCA Taxonomy Elements. User has to tag the respective applicable Taxonomy child elements to the Group/Sub group.  Generate the MCA Reports in prescribed MCA-XBRL format 6
  12. 12. Lesson 2: Configure List of AccountsThe List of Accounts Configuration report displays the mapping details for each default TallyGroup with the MCA - XBRL Head with Group Closing Balance.To view the List of Accounts Configuration report,Go to Gateway of Tally > Display > Statutory Reports > MCA Reports > List of Accounts Figure 2.1 List of Accounts Configuration ScreenThe List of Accounts Configuration report displays the Default Tally Groups in Blue Colour.Users have to map the Tally.ERP 9 default groups/subgroups/ledgers from the above report bypressing Ctrl+Enter on the required Group/Subgroup/ledger or select (by pressing Spacebar key)required Group/ Subgroup/ ledger and click on C: Map Elements button to Configure MCATaxonomy Element. 7
  13. 13. Configure List of AccountsFrom List of Accounts Configuration screen, company can also configure Cash Flow and P&Ladjustments & appropriations.To configure the Cash Flow Statement select Cash Flow Statement option and press Ctrl+Enter.To disclose the details of Profit & Loss Adjustments & Appropriations select Profit and LossAdjustments & Appropriation option and press Ctrl+Enter.2.1 Configure MCA Taxonomy ElementsTo Configure MCA Taxonomy Elements,Go to Gateway of Tally.ERP 9 > Display > Statutory Reports > MCA Reports > List ofAccounts  Click on F1: Detailed or press Alt+ F1 keys to view the detailed Chart of Accounts of the company along with Ledgers for tagging the Taxonomy elements. For easy identification, unmapped List of Accounts are displayed in Blue Colour.  Select the Default Tally Ledger for MCA - Taxonomy element tagging. Press Spacebar key to select the Default Tally Group/Sub-Group/Ledger. Figure 2.2 List of Accounts Configuration Screen – Detailed Mode 8
  14. 14. Configure List of Accounts Click on C: Map Elements or press Ctrl + Enter to select applicable child element to tag to the selected ledger or group. The elements of MCA -Taxonomy are shown in a tree struc- ture and user can select the applicable element for the selected ledger. The Taxonomy Elements are shown in its reporting structure by default. User can see this in the form of Alphabetical Order or Taxonomy Head as per the reporting structure of the taxonomy using the options provided in this screen. Figure 2.3 Taxonomy Elements Display Screen Select the appropriate MCA - Taxonomy Element from the MCA - XBRL Taxonomy (e.g. Calls unpaid by directors). The newly mapped group will be displayed in Selected Element filed. 9
  15. 15. Configure List of Accounts Figure 2.4 Selection of Taxonomy Elements Tally.ERP 9 will allow to re-configure the default mapping only with the MCA - XBRL Taxonomy displayed in Blue (child taxonomy element). It will not allow to map the MCA - XBRL Taxonomy displayed in Black (parent Taxonomy element).  Press Enter to save the taggingThe List of Accounts Configuration report with the mapped MCA Taxonomy Element appears asshown: Figure 2.5 Mapped List of AccountOn mapping the List of Accounts with MCA Taxonomy, the mapped Ledgers colour getschanged to Black indicating that the ledger is mapped. 10
  16. 16. Configure List of AccountsIf you map the Group with MCA Taxonomy, then all the ledgers created under it will mapped withthe MCA Taxonomy selected for the Group. Figure 2.6 Mapping of Group Figure 2.7 Mapping with the MCA Taxonomy Element 11
  17. 17. Configure List of Accounts Figure 2.8 Display of Mapped Group & Ledgers2.2 Profit and Loss Adjustments & AppropriationsIn Profit and Loss Adjustments & Appropriations screen company can disclose the details ofProfits distributed after Net Profit is arrived.Net Profit = Gross Profit - Administration & Selling Expenses - Other Expenses - Taxes - Depreci-ation + Other Incomes.To disclose the details of Profit & Loss Adjustments/ Appropriations,Go to Gateway of Tally > Display > Statutory Reports > MCA Reports > List of Accounts >Profit and Loss Adjustments & Appropriations > press Ctrl + Enter Figure 2.9 Profit and Loss Adjustments & Appropriations Screen 12
  18. 18. Configure List of AccountsIn Profit and Loss Adjustments & Appropriations screen,  Net Profit as per Profit & Loss Account: Net Profit displayed in this field is captured from Profit & Loss A/c  Net Profit as per MCA - Taxonomy Element: Net Profit is displayed based on the map- ping of MCA - Taxonomy Elements.The Net Profit displayed in both the fields should be same to confirm that the books of accountsand the details disclosed in Instance Document are correct.As different companies follow different methods to arrive Profit, difference in Net Profit may befound. Example: when a company has recorded all the adjustment/appropriation entries in booksof accounts but are not mapped to generate XBRL Instance Document. In this case Net Profit asper Profit & Loss Account will be less than the Net Profit as per MCA Taxonomy Element.Hence, while disclosing the Profit and Loss Adjustments & Appropriations details, companiescan follow any one of the methods given:2.2.1 Profit and Loss Adjustments & Appropriations are already accountedin the Books of AccountsIf the company has already recorded all the Profit & loss adjustment transactions then, theadjusted values can be entered/specified for the appropriate Taxonomy elements manually. Thevalues are entered manually will be considered only for Taxonomy elements and will not affect thebooks of accounts.Example: ABC Company has already accounted the transfer of Rs. 12,00,000 to GeneralReserves. Hence, the value of Reserves is being entered manually in P& L Adjustment & Appor-tions. Figure 2.10 P & L Appropriation Report after Manual Accounting of Reserves 13
  19. 19. Configure List of AccountsOn disclosure of all the Profit and Loss Adjustments & Appropriations the Profit/Loss as perMCA Taxonomy Elements and Books of accounts transferred to Balance sheet will be dis-played.  Profit/Loss as per MCA Taxonomy Elements = Net Profit as per MCA Taxonomy Ele- ments - Taxonomy Element amount (addition/Subtraction)  Profit/Loss as per Books of accounts transferred to Balance sheet = Net Profit as per Profit & Loss Account The Profit/Loss displayed in both the fields should be same to confirm that the books of accounts and the details disclosed in Instance Document are correct. If there is any difference, the Difference amount will be displayed in Red.2.2.2 Profit and Loss Adjustments & Appropriations are not accounted inthe books of AccountsIf the company has not accounted the P& L Appropriations, to disclose the such information fortaxonomy elements and Books accounts,Example: ABC Company wants to allocate Rs. 12,00,000 towards General Reserve. It has notaccounted the allocation in Books of Accounts.Navigate to the appropriate taxonomy element and click on F7: Create Voucher button or pressF7 key to navigate to Journal Voucher to record the adjustments/ appropriations. Figure 2.11 Selecting Create Voucher option 14
  20. 20. Configure List of AccountsIn Journal Voucher,  Debit - Profit & Loss A/c and enter the amount allocated in Amount field.  Credit - Reserves & Surplus ledger. on selection of Ledger Tally displays the Adjustment Type screen to select the Taxonomy elements towards which the value to be mapped. In this screen select the appropriate taxonomy element e.g. Appropriations General Reserve Figure 2.12 Selection of Adjustment Type in Journal Voucher 15
  21. 21. Configure List of Accounts Figure 2.13 Completed Journal VoucherAll adjustments/appropriations have to be accounted using the ledger Profit & Loss A/c. If Profit &Loss A/c ledger is not used to account the adjustments, such transactions will be considered asnormal adjustments and will not be displayed in Profit and Loss Adjustments & Appropriationsscreen. From Journal Voucher, Tally.ERP 9 will not allow the user to navigate to any other vouchers. To navigate back to Profit and Loss Adjustment & Appropriations screen press Escape from Journal Voucher.On accepting the voucher the allocated value will be displayed in Profit and Loss Adjustment &Appropriations screen as shown: 16
  22. 22. Configure List of Accounts Figure 2.14 P& L Appropriation report with Auto-filled ValueOn disclosure of all the Profit and Loss Adjustments & Appropriations the Profit/Loss as perMCA Taxonomy Elements and Books of accounts transferred to Balance sheet will be dis-played.  Profit/Loss as per MCA Taxonomy Elements = Net Profit as per MCA Taxonomy Ele- ments - Taxonomy Element amount (addition/Subtraction)  Profit/Loss as per Books of accounts transferred to Balance sheet = Net Profit as per Profit & Loss Account - Taxonomy Element amount (addition/Subtraction). The Profit/ Loss displayed in both the fields should be same to confirm that the books of accounts and the details disclosed in Instance Document are correct. 17
  23. 23. Configure List of Accounts2.2.3 Earnings Per Share CalculationIn this section, company has to disclose Basic and Diluted Earnings per share on the undistrib-uted profits along with the information of average number of shares considered for calculatingdiluted earnings per share. Figure 2.15 Earnings Per Share Calculation Section From Profit & Loss Adjustments and Appropriations screen, users can view the Journal Vouchers recorded using F7: Create Vouchers button. To view Journal Vouchers recorded from Profit & Loss Adjustments and Appropria- tions, click on F8: Show Vouchers button or press F8 key. Journal Voucher lists only those Journal Voucher which are recorded from Profit & Loss Adjustments and Appropriations report.2.3 Cash Flow StatementEvery enterprise has to prepare a Cash Flow Statement to report cash flows during the periodclassified by Operating, Investing and Financing Activities in a manner which is most appropriateto its business.An enterprise can report cash flows using either1. Direct method – Where the major classes of gross cash receipts and gross cash payments are disclosed.2. Indirect method – Where the net profit or loss is adjusted for the effects of transactions of a non-cash nature, any delays or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows. 18
  24. 24. Configure List of AccountsWhile reporting the cash flows of Operating, Investing and Financing activities, enterprise has todisclose the details  Foreign Currency Cash Flows  Extraordinary Items  Interest & Dividends  Taxes on Income  Investments in Subsidiaries, Associates and Joint Ventures  Acquisitions and Disposals of Subsidiaries and Other Business Units  Non-cash Transactions  Components of Cash and Cash Equivalents  Other Disclosures2.3.1 Prepare Cash Flow Statement in Tally.ERP 9To prepare the Cash Flow Statement,Go to Gateway of Tally > Display > Statutory Reports > MCA Reports > List of Accounts >Cash Flow Statement Figure 2.16 Cash Flow Statement 19
  25. 25. Configure List of AccountsTally.ERP 9, allows the user to prepare the Cash Flow Statements using Direct Method or IndirectMethod. In Cash Flow Statements screen, Indirect Method will be displayed as the defaultmethod used for generation of Cash Flow Statement. If the company is following different Type ofCash Flow Statement, the same can be configured in General Configuration. When the Typeof Cash Flow Statement is configured, the same will be captured in method used for generationof Cash Flow Statement field in Cash Flow Statements screen. Tally.ERP 9 will not allow the user to change the Type of Cash Flow Statement in Cash Flow Statements screen. Cash Flow Statement Type can be configured only from General Configurations.In Cash Flow Statement screen enter the information of:  Adjustments of amortization, bad Debts recovered, depreciation, dividend received by the company & subsidiary, employee compensation, employee stock option plan, gain or loss of foreign exchange fluctuations, gain or loss on sale of fixed Assets, impairment loss, interest expense, income tax refund, liabilities written off, write-off debts, etc.  Changes in advance of tax, advances received, amount receivable from related parties, current liabilities provisions, inventories, loan advances, current assets, liabilities, prepaid expenses, provisions, working capital etc.  Expenses of Debt Issue and Refunded Direct Taxes.  Dividend & Dividend distribution Tax paid on equity and preference shares.  Effect of Foreign Exchange in cash and Cash equivalents.  Extraordinary financing and investing activities  Cash Flow Increase or Decrease because of Discontinued Operations.  Interest Expenses paid on bank borrowings, inter-corporate deposits, long-term & Short- term loans etc.  Loans & Advances made to others, subsidiaries etc.  Net Cash Flow of financing, investing and indirect operating activities.  Net Changes in reserves, subsidy and discontinuing operations.  Other Financing and Investing activities  Non-operating and Non-cash adjustments made.  Payments to acquire the business, buy back equity shares, investing in Bank Deposits, to develop Fixed Assets, etc.  Proceeds of joint ventures, associates, disposal of fixed assets, Investments, Subsidiaries, dividend Investments, dividend mutual funds, bank deposits, issue of equity and Prefer- ence shares, sale of business etc.  Purchase of associates, fixed assets, Equity and Preference Shares, Government securi- ties, intangible fixed assets, investment properties, subsidiaries etc. 20
  26. 26. Configure List of Accounts  Repayment of long & short-term borrowings from banks, related parties etc.  Share issue Expenses and debt issue expenses.The Cash Flow Statement with Previous Year Amount details appears as shown: Figure 2.17 Completed Cash Flow Statement If the company has previous year data, then the data can be loaded using the option F3: Previous Cmp. The previous year closing balances will be displayed in Previous Year Amount column. 21
  27. 27. Configure List of Accounts2.3.2 Disclose Details in Cash Flow Statement Manually or Auto FillCompany can disclose the Cash Flow details by manually entering the Value or by selecting theapplicable ledgers to auto-fill the values.Let us take a scenario where ABC Company has to disclose details of Purchase of IntangibleFixed Assets during the Period.In this case to auto-fill the value,In Reporting Year column tab down to Purchase intangible fixed assets field and click on S:Show Ledger button or press Alt+S keys to view the List of Ledgers. By default the List ofLedgers screen displays the ledgers grouped under Bank Account.From List of Ledgers screen select the Bank Current Account Ledger to view the List of Trans-actions for selected Ledger screen. Figure 2.18 Selection of Bank LedgerIn List of Transactions for Selected Ledger screen, select the appropriate transaction (usespacebar to select the transaction) and press enter. Figure 2.19 List of Transactions of Selected Bank Ledgers 22
  28. 28. Configure List of AccountsThe transaction amount will be displayed against the Ledger. Press Ctrl+A or click on A: Acceptbutton. Figure 2.20 List of Ledgers with the Amount of Transaction SelectedAmount of Rs. 25,00,000 will be auto-filled automatically for Purchase intangible fixed assetsin the Amount column. Figure 2.21 Cash Flow Statement with Auto-filled Amount All the information for the Cash Flow Statement is mandatory and to be filled com- pulsorily. If value is not available, then Zero (0) needs to be specified. 23
  29. 29. Configure List of Accounts2.4 Select Previous Year CompanyClick on F3: Previous Cmp. button or press Ctrl+F3 keys to load the Company having previousyears data. Figure 2.22 Selection of Company with Previous Year DataIf MCA - Reports feature is not enabled for the Previous Year Data, while selecting the companyTally.ERP 9 displays the message - MCA Reports are not enabled, do you want to enable? Figure 2.23 Massage Displayed for Confirmation to Enable MCA Report feature for Previous Year CompanyTo load Previous Year company select Yes. On enabling, company will get loaded and displayedin Previous Year Company field 24
  30. 30. Configure List of Accounts Figure 2.24 Display of Previous Year Company Loaded If the Multiple years data is in the same Company, then the Pervious Year Company field will be changed to Previous Year Period and based on the based on the Financial Year Beginning period the Previous Year Period will be displayed.2.4.1 Restore Mapped List of AccountsRestore option will revert all the List of Accounts mapping that the user has made for theselected Group/Subgroup/Ledgers.To restore list of mapping,Click on F10: Restore or press Ctrl+F10 to restore the List of Accounts Configuration/mapping.To revert the configuration of One or Few List of Accounts, first select the ledgers/Groups/sub-groups using spacebar and then click on Restore button.If the Restore option is used without selecting any of the ledgers/Groups/sub-groups, then systemwill understand that the restore instruction is for all the List of Accounts and will display thefollowing message. On confirmation it will revert all the set mapping which you cannot undo. Figure 2.25 Message to Restore All the Accounts 25
  31. 31. Configure List of Accounts2.5 View ChecklistThis report displays the details which are mandatory and the indication of completion of disclosureof details. Before generating MCA reports, this report can be referred to check whether all theinformation are disclosed. Click on L: Checklist or press Alt+L keys to view the check list for gen-eration of Reports. Figure 2.26 Check List for Generation of ReportsFrom this screen user can drill down to respective screens to disclose the details. 26
  32. 32. Configure List of Accounts2.6 Configure Mandatory InformationFor proper disclosure of financial reports, Registrar of Companies has defined the guidelineswhere it has identified some of the Operating and Non-Operating Informations as Mandatory,which has to disclosed in financial reports by all the registered companies.In Tally.ERP 9 users can view the Mandatory Information to be captured in:  Balance Sheet  Cash Flow  Company Information  Profit and Loss Account The mandatory informations will be automatically captured from the Books of Accounts main-tained. Enterprises can configure the values/details of Mandatory Information as per the require-ment to generate valid instance document.To configure Mandatory Information,Go to Gateway of Tally.ERP 9 > Display > Statutory Reports > MCA Reports > List ofAccounts  Click on M: Mandatory Info. or press Alt+ M to view Select Item screen  In Select Item screen, select the Report (e.g. Balance Sheet) from the List of Report Names2.6.1 Balance SheetThe Mandatory Information for Balance Sheet screen is displayed as shown: Figure 2.27 Mandatory Information – Balance Sheet 27
  33. 33. Configure List of AccountsThe mandatory taxonomy elements for balance sheet appears on the left side and current andprevious year amount for each mandatory taxonomy head appears on the right side of the reportalong with the Current and Previous period details.In Mandatory Information for Balance Sheet screen,  Values for the Taxonomy heads under Source of Funds and Application of Funds will be automatically captured based on the List of Accounts configuration done.  For the taxonomy heads displayed under  Share Capital Details values will be captured automatically from Disclosure of Share Capital  Details of Deposits, values will be captured automatically from Additional Information Relating to Balance Sheet Items if details are disclosed in the respective Additional Details screen.To fill the mandatory info, select the Taxonomy head and click on F: FillMandatoryInfo button orpress Alt+F keys to view the applicable disclosure screen. In the Disclosure screen enter thedetails and save. Figure 2.28 Selection of Fill Mandatory Information option 28
  34. 34. Configure List of AccountsIn Disclosure of Share Capital screen enter the applicable details as shown and accept thescreen. Figure 2.29 Disclosure of Mandatory Information All the taxonomy elements displayed in the Disclosure screen are mandatory. If the fields are empty, Tally.ERP 9 will not allow to continue to define other details and save the Disclosure. 29
  35. 35. Configure List of AccountsAfter filling the mandatory Share Capital Details, the Mandatory Information for Balance Sheetscreen appears as shown: Figure 2.30 Mandatory Information filled Balance Sheet Screen If any of the Mandatory Information is not applicable or doesnt have value, then it is must to fill with Zero to generate valid MCA Reports. To fill Zero, press Alt+Z or Click on Z: Set Zero button. On performing the opera- tion, Zeros will be filled to the mandatory informations without Value. 30
  36. 36. Configure List of Accounts2.6.2 Cash Flow StatementIn Cash Flow Statements all the fields are mandatory. The Cash Flow Statement configured fromMCA-XBRL Master Configuration screen will be displayed here. From this screen, you cannotenter/specify the amount to taxonomy elements. However this can be sued as a second check tosee that all taxonomy elements carry amount and can compare the amount entered in cash flowstatement with Default Cash Flow. Figure 2.31 Cash Flow Statement 31
  37. 37. Configure List of Accounts2.6.3 Company InformationThis screen displays the mandatory taxonomy elements in Company Information screen. Figure 2.32 Company Information ScreenTo fill the mandatory Company Information, click on F: Fill MandatoryInfo button or press Alt+Fkeys to view General Information screen. In General Information screen enter the details andsave. 32
  38. 38. Configure List of Accounts2.6.4 Profit and Loss AccountIn Profit and Loss Account all the fields are mandatory. The Profit and Loss Adjustments &Appropriations done from MCA-XBRL Master Configuration screen will be displayed here. Fromthis screen, you cannot enter/specify the amount to taxonomy elements. However this can besued as a second check to see that all taxonomy elements carry amount, if not configure thesame in Profit and Loss Adjustments & Appropriations screen.If any of the Mandatory Information is not applicable or doesnt have value, then Zero to be filledfor the mandatory information without value. To fill Zero, press Alt+Z keys or click on Z: Set Zerobutton. On performing the operation, Zeros will be filled to the mandatory informations withoutValue. Figure 2.33 Profit & Loss Account 33
  39. 39. Configure List of Accounts2.6.5 Show Unmapped List of AccountsThis report displays the Groups/Sub-Groups/ledgers which are not mapped.Click on S: Show Unmapped or press Alt+S keys to view the unmapped Group/Sub-groups/Ledgers. Press Alt+F1 to view the unmapped List of Accounts. Figure 2.34 Display of Unmapped List of Accounts 34
  40. 40. Lesson 3: Configure Additional DetailsOn broad sense, Additional Details contains operational and general information with respect toFinancial and Non-financial dealing, along with Auditor and Director Reports details.To Provide the Additional Details,Go to Gateway of Tally > Display > Statutory Reports > MCA Reports > Additional Details Figure 3.1 Additional Details ScreenThe Additional Details are categorized into 38 different heads.  Applicable Report: Gives the information about the report to which the additional informa- tions are applicable. By default few of the additional details are identified with the report and for the un-identified additional details specify the applicable report.  Status: Displays the information disclosure completion status for each Additional Details as entered using the F9: Status button. 35
  41. 41. Configure Additional Details3.1 General InformationUnder General Information, specify company’s general information such as Name, Address,Corporate Identity Number, Permanent Account Number (PAN), Type of Industry, nature of Report– Standalone/Consolidated, presentation Currency (Currency in which the financial reports arepresented), Level of Rounding, Type of Balance Sheet, Profit & Loss Statement and Cash FlowStatement and other related information.  Name of Company: The Mailing Name entered in the Company Creation screen is cap- tured in Name of Company field.  Corporate Identity Number: Enter the Corporate Identity Number issued by the Ministry of Corporate Affairs. Corporate Identity Number is a 21- digit number assigned to every company incorporated on or after November 1, 2000. The Corporate Identity Number allotted to a company indicates listing status, economic activity (industry), state, year of incorporation, ownership and sequential number assigned by Registrar Of Companies (Registration Number). 1st Digit Listing Status (if Listed starts with L and if Unlisted starts with U) Next 5 Digits Economic Activity (Industry Code) Next 2 Digits State (KA- Karnataka) Next 4 Digits Year of Incorporation (2001)  Next 3 Digits Ownership (PLC for Public Limited Company & PTC for Private Limited Company)  Last6 Digits Sequential Number assigned by ROC (Registration Number - 090635).Tally.ERP 9 checks the Number of digits entered in this field. If the number entered in less than 21digits it displays the error - CIN should be Equal to 21character and will not allow the user toproceed till the number entered is corrected to 21digits. Figure 3.2 Error for Wrong CIN If this field is empty, Tally.ERP 9 will not allow to proceed to define other details such as Type of Industry, Reporting method and save the General Information. 36
  42. 42. Configure Additional Details Permanent Account Number (PAN) of the Entity: The PAN/Income -Tax number entered in F3: Statutory & Taxation features screen will be captured here. Address of registered office of Company: The Address entered in Company Creation screen will be captured here. Website: Enter the Companys Website address in this field. Type of Industry: In this filed, select the appropriate Industry Type. Figure 3.3 Type of Industry List The Type of Industry List displays the industry Types – Bank, Commercial & Industrial, Insurance, NBFC and Power for selection. Under Disclosure of Document Information, enter the details of Date of Board meeting when final accounts were approved, Reporting period Starting & Ending Date. Nature of report - Standalone/Consolidated: Depending on reporting method followed by the company select Standalone or Consolidated in this field. Figure 3.4 Nature of Report The Mandatory Information to be disclosed will vary depending on the Nature of Report (Standalone/Consolidated) followed. For example, company is following consolidated system of reporting. Then it has to disclose the details of subsidiaries, associates etc. Contents of Report: In this field mention the brief content of the Report. Description of Presentation Currency: In this field, company can select the appropriate Currency in which the financial statements are presented from the List of Currencies. Level of Rounding used in financial statements: Company can select the applicable level of rounding – Actual, Billions, Crores, Lakhs, Millions and Thousands from Rounding of Currency list. 37
  43. 43. Configure Additional Details  Type of Balance Sheet: Company can select Sources and Application of Funds [Verti- cal Format] or Total Assets and Liabilities [Horizontal Format] as applicable.  Type of Profit and Loss Statement: Select Alternative or Main as the applicable P& L Type.  Type of Cash Flow Statement: For Cash Flow Statement, select the Direct Method or Indirect Method as followed by the companies.  SRN (Service Request Number): Every request submitted on MCA portal is identified by a unique number known as the Service Request Number (SRN). It is a nine character alpha- numeric string starting with an alphabet (A-Z) which is printed on the top left hand side of a Receipt or Challan. SRN will be used for all future correspondence with MCA.  SRN of Form 66: In this field mention the Service Request Number obtained during sub- mission of Form 66.The completed General Information screen appears as shown: Figure 3.5 Completed General Information Disclosure Screen The Fields indicated with * are mandatory fields to generate valid XBRL Instance Document. 38
  44. 44. Configure Additional Details3.2 Details of InventoriesIn Details of Inventories, specify the information of Opening, Closing, Purchases of Raw Materi-als, Packing Materials, Stores Spares, Other Materials consumed during Current Year andPrevious Year. Here, you can also disclose the details of Cost of Traded Goods, Increase/Decrease in Finished Goods, Work-in Progress, other inventories, Excise Duty inventories etcand consumption of Raw materials, packing Materials, Store Spares etc.In this screen you can disclose the changes in Inventory in Profit & Loss Account and BalanceSheet separately. Figure 3.6 Details of Inventories Disclosure Screen If the Company was operating in the Previous Year, then it is mandatory to provide Previous Years Inventory details. 39
  45. 45. Configure Additional Details3.3 Details of TurnoverIn Details of Turnover screen, disclose the details of Revenue from services, Contract andSale of Goods (Domestic & Exports). Figure 3.7 Details of Turnover Disclosure Screen3.4 Accounting Policies and Basis of PresentationAs per Accounting Standard (AS) 1, all significant policies adopted in the preparation and presen-tation of financial statements should be disclosed at one place and should form part of thefinancial statements.It’s usual to furnish a summary of the accounting policies in respect of the following areas:  Accounting Convention  Borrowing Cost  Basis of Accounting  Proposed Dividend  Fixed Assets  Retirement Benefits  Depreciation  Lease Rentals (Lease Income)  Revaluation of Assets  Research and Development Costs  Investments  Taxes on income  Inventories  Foreign currency translation Claims  Revenue Recognition  Segment Reporting  Investment Income  Financial and Management Information Systems  Intangible assets 40
  46. 46. Configure Additional DetailsIn Accounting Policies and Basis of Presentation, you can enter the details of policies adoptedin the preparation and presentation of financial statements of your company.1. Company can disclose the both Accounting Policies and Basis of Presentation details, bysetting the field Provide complete details in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path.  To Copy and Paste or Type the information click on T: Write Text button or press Alt+T keys Figure 3.8 Selection of Write Text Option  On selecting Write Text option by clicking on T: Write Text button or pressing Alt+T to display information in plain text in report Tally.ERP 9 will prompt you for confirma- tion. 41
  47. 47. Configure Additional Details Figure 3.9 Prompt to Remove HTML Display On selecting Yes, the HTML display gets changed to Text Block where you can enter the information. Figure 3.10 Text Block Enabled Disclosure Screen 42
  48. 48. Configure Additional Details On Copy and Paste or Typing the information in the Text Block, the disclosure screen is displayed as shown: Figure 3.11 Disclosure of Accounting Policies and Basis of Presentation Screen On attaching the Word file by specifying the word file path the disclosure screen is dis- played as shown: Figure 3.12 Disclosure Screen on Attaching the Word File 43
  49. 49. Configure Additional Details In Word Doc File Path field, mention the path, word file name with the file exten- sion.OR2. Disclose Basis of Presentation and Accounting Polices separately by setting the optionProvide complete details in a text block (given above the respective taxonomy elements) toYes.OR3. If the Company is not interested in disclosing Accounting Policies and Basis of Presentationdetails in the text block, then the information can be entered in appropriate taxonomy elements.The completed Accounting Policies and Basis of Presentation screen appears as shown: Figure 3.13 Completed Accounting Policies and Basis of Presentation Disclosure Screen If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 44
  50. 50. Configure Additional Details3.5 Changes in Accounting Policies and EstimatesIn Changes in Accounting Policies and Estimates configuration, enter the details of changes inAccounting Policies and Estimates during the Financial Year along with the reason and impact ofchanges.1. Company can disclose Changes in Accounting Polices and Estimates details, by setting thefield Provide complete details in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text.OR2. If the Company is not interested in disclosing Changes in Accounting Policies andEstimates details in text block, then the information can be entered in appropriate taxonomyelements.The completed Changes in Accounting Policies and Estimates screen appears as shown: Figure 3.14 Completed Changes in Accounting Policies and Estimates Disclosure ScreenIf information is not disclosed in the text block, then it is mandatory to enter details for all thetaxonomy elements. 45
  51. 51. Configure Additional Details3.6 Events occurring after Balance Sheet DateAccounting Standards (AS) 4, deals with the disclosure of contingencies and the events occurringafter the balance sheet Date. In Events after Balance Sheet Date, enter the details of contingen-cies/events occurred after the Balance sheet date along with the details of estimated amount ofeffect and the statement of inability to estimate the effect. Figure 3.15 Events occurring after Balance Sheet Date Disclosure Screen1. Company can disclose Events after Balance Sheet Date details, by setting the field Providecomplete details in a text block to Yes.  Users can disclose the details in Text block (Type/ Copy & Paste) or attach the Word file by specifying the word file path. Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text.OR2. If the Company is not interested in disclosing Events after Balance Sheet Date Details in textblock, then the information can be entered in appropriate taxonomy elements. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 46
  52. 52. Configure Additional Details3.7 Foreign Exchange TransactionsAn entity may carry on foreign activities in two ways. It may have transactions in foreign curren-cies or it may have foreign operations. In addition, an entity may present its financial statements ina foreign currency. The principal issues faced in case of foreign currency transactions are whichexchange rate(s) to use and how to report the effects of changes in exchange rates in thefinancial statements.Accounting Standard (AS) 11 prescribes the procedure to include foreign currency transactionsand foreign operations in the financial statements of an entity and how to translate financial state-ments into a presentation currency.In Foreign Exchange Transactions screen enter the details of Forex transactions and theforeign operation carried out by the company.1. Company can disclose Foreign Exchange Transactions details, by setting the field Providecomplete details in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. OR2. If the Company is not interested in disclosing Foreign Exchange Transactions details in textblock, then the information can be entered in appropriate taxonomy elements.The completed Foreign Exchange Transactions screen appears as shown: Figure 3.16 Foreign Exchange Transactions Disclosure Screen Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 47
  53. 53. Configure Additional Details3.8 Government Grants and SubsidiesAccounting Standard (AS) 12, deals with the accounting of Government Grants (subsidies, Cashincentives, Duty Drawbacks etc.). If a government grant is received, preparation of financial state-ments becomes significant for an enterprise, as it is necessary to give an indication of the extentof development from such grant during the reporting period.In Government Grants and Subsidies screen mention the details of methods of presentation offinancial statement, Nature of Grants, non-monetary assets given at concessional rate and Freeof Cost and Contingencies related to Grants. Figure 3.17 Government Grants and Subsidies Disclosure Screen1. Company can disclose Government Grants and Subsidies details, by setting the fieldProvide complete details in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path.OR2. If the Company is not interested in disclosing Government Grants and Subsidies details inthe text block, then the information can be entered in appropriate taxonomy elements. Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 48
  54. 54. Configure Additional Details3.9 AmalgamationAccounting standard (AS) 14, deals with accounting for amalgamations and the treatment ofresultant goodwill and reserves. As per this Accounting Standard, companies have to disclose thedetails of amalgamations if any, during the reporting period.In Amalgamation screen, enter the details such as Name, Country of Incorporation, CIN Numberof amalgamating Co., effective date of amalgamation, method of accounting, accountingTreatment given to Reserves, number of shares issued in scheme of amalgamation etc.In this screen, you can disclose amalgamation details of more than one Amalgamating company.Once you enter the First amalgamating company name the provision to enter Second amalga-mating company details will be displayed. Figure 3.18 Amalgamation Related Disclosure Screen1. Company can disclose Amalgamation details, by setting the field Provide complete detailsin a text block to Yes.  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. OR2. If the Company is not interested in disclosing Amalgamation details in the text block, then theinformation can be entered in appropriate taxonomy elements. Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 49
  55. 55. Configure Additional Details3.10 Employee BenefitsAs per accounting standards (AS) 15, companies are required to disclose the details of employeebenefits and the accounting policies followed to account the employee benefits during thereporting Year.In Employee Benefits information, enter the details of present value of benefit plan obligation,present value, changes in present value, estimate of employer for contributions expected for theplan, amalgamations defined benefit plans etc.1. Company can disclose Employee Benefits details, by setting the field Provide completedetails in a text block to Yes.  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. OR2. If the Company is not interested in disclosing Employee Benefits details in the text block, thenthe information can be entered in appropriate taxonomy elements.The completed Employee Benefits screen appears as shown: Figure 3.19 Employee Benefits Disclosure Screen Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 50
  56. 56. Configure Additional Details3.11 Segment ReportingMany enterprises provide groups of products or services or operating in different geographicalareas with the different levels of profitability, opportunity for growth and risks. The informationabout different geographical areas is called - Segment Information. An organization cannotassess the risks and returns of multi-locations from the aggregated data. Under AccountingStandard (AS) 17, Entitys operating in multi-locations have to disclose the details of segmentname (Primary & Secondary), revenue, accounting policies, changes in accounting policies,expenses etc.In Segment Reporting screen, enter the details of entitys reportable segments, factors used toidentify segments, nature of differences between measurements of profit or Loss, assets and Lia-bilities of reportable segments and entitys. Figure 3.20 Segment Reporting Screen1. Company can disclose Segment Information details, by setting the field Provide completedetails in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path.OR2. If the Company is not interested in disclosing Segment Information details in the text block,then the information can be entered in appropriate taxonomy elements. Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 51
  57. 57. Configure Additional Details3.11.1 Primary Segmentsn Primary Segments configuration, specify the details of Name, Revenue and Expenses ofprimary reportable segments.In this screen, you can disclose details of more than one Primary reportable segment. Once youenter the First Primary reportable segment name the provision to enter second Primary reporta-ble segment details will be displayed. Figure 3.21 Primary Segment Related Disclosure Screen The Fields indicated with * are mandatory fields to generate valid Instance Document. 52
  58. 58. Configure Additional Details3.11.2 Secondary SegmentsIn Secondary Segments configuration, specify the details of Name, Revenue, Assets andAdditions to Non-current Assets of primary reportable segments. Figure 3.22 Secondary Segment Related Disclosure Screen All fields in this screen are mandatory, need to be filled compulsorily to generate valid Instance Documents.3.12 Related PartiesUnder Accounting Standards (AS) 18, details of related party relationships (Holding Company/Subsidiary) and transactions between a reporting enterprise and its related parties have to be dis-closed.In Related Parties, disclose the details of whether the reporting company is subsidiary companyor not, under which section the company is subsidiary, Name, Country of Registration and CIN ofHolding Company.1. Company can disclose Related Parties details, by setting the field Provide complete detailsin a text block to Yes.  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path.OR2. If the company is not interested in disclosing Related Parties details in the text block, then theinformation can be entered in appropriate taxonomy elements. 53
  59. 59. Configure Additional DetailsThe completed Related Parties screen appears as shown: Figure 3.23 Related parties Disclosure Screen Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements.3.12.1 Related Party TransactionsIn Related Party Transactions enter the details such as Name of Related Party, Country ofIncorporation, PAN, CIN of Related party, Nature of related party relationship along with Amount,Provisions for doubtful debts, guarantee given or received of outstanding balances for relatedparty transactions.While disclosing Related Party Transaction details in taxonomy elements, in Name of RelatedParty field, Tally.ERP 9 will display the Sundry Debtors ledgers which are configured for RelatedParties. On selection of Related Party ledger, the respective details will be automatically field inthe appropriate fields. Figure 3.24 Related Party Transactions Disclosure Screen 54
  60. 60. Configure Additional DetailsTo configure the ledgers as Related Parties, in Ledger Creation/Alteration screenpress F12 key or click on F12: Configure and set the option Use Other Informa-tion for Ledger Accounts to Yes.In Ledger Creation/Alteration screen, under Other Information section set theoption Is Related Party to Yes.In Related Party Details specify the Nature of Relationship, Country of Resi-dence, Identification No. and Issuing Authority details.2. In Related Party Transactions screen, the fields marked with * are mandatoryfields and needs to filled compulsorily to generate valid instance document. 55
  61. 61. Configure Additional Details3.13 LeasesAccounting Standard (AS) 19 prescribes the appropriate accounting policies and disclosures inrelation to finance and operating leases for lessees and lessors. As per this Accounting Standardsreporting entity has to disclose the details of leases if any during the reporting period.In Leases information, enter the details of Financial Leases and Operation Leases for Lessor andLessee as applicable.1. Company can disclose Leases details, by setting the field Provide complete details in a textblock to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. OR2. If the company is not interested in disclosing Leases details in the text block, then the informa-tion can be entered in appropriate taxonomy elements.The completed Leases screen appears as shown: Figure 3.25 Leases Disclosure Screen Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 56
  62. 62. Configure Additional Details3.14 Earnings per ShareAccounting Standard (AS) 20 prescribes the principles for the determination and disclosure ofEarnings Per share. As per the AS requirement reporting companies have to disclose the basicand diluted earnings per share with other related information like the number of shares used forcalculation of Basic earnings per share, nominal value of shares etc.In Earning Per Share information enter the details of Net Profit attributable to equity shareholdersbasic/ diluted, Number of shares used for basic/dilutive earnings per share.1. Company can disclose Earning Per Share details, by setting the field Provide completedetails in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. OR2. If the company is not interested in disclosing Earning Per Share details in the text block, thenthe information can be entered in appropriate taxonomy elements.The completed Earnings per Share screen appears as shown: Figure 3.26 Earnings Per Share Disclosure Screen Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 57
  63. 63. Configure Additional Details3.15 Subsidiary InformationIn case the reporting company has any subsidiaries, such subsidiary companies details likeName, Country of incorporation, CIN, Section under which the company became subsidiary,whether the company has filed the Balance Sheet, if No reason for not filing, SRN of filing Balancesheet, Assets, liabilities, Reporting Currency, the financial Year followed, exchange Rate as appli-cable, Share Capital, Reserves & Surplus etc. of subsidiary can be entered under SubsidiaryInformation.1. Company can disclose Subsidiary Information details, by setting the field Provide completedetails in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. OR2. If the company is not interested in disclosing Subsidiary Information details in the text block,then the information can be entered in appropriate taxonomy elements.To fill the details under Details of Subsidiaries, set the option Whether the company has subsidi-ary companies to Yes. If this option is No, the cursor will not move to any of the field in this screen. Figure 3.27 Subsidiary Information Disclosure Screen Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 58
  64. 64. Configure Additional DetailsGuarantee by CompanyIf the reporting company has given the guarantee for the loans borrowed by the Subsidiary, inSubsidiary Information, enable the option Guarantee given for loans borrowed by subsidiaryto Yes to view Guarantee by Company screen.In Guarantee by Company information, details of guarantee given by the Company for the loansborrowed by subsidiary. Here, the information’s likes the name of subsidiaries (who haveborrowed the loan), Name of Guaranteed Party, CIN of Guaranteed Party and the Amount Guar-anteed on Loan Borrowed by subsidiary can be disclosed. Figure 3.28 Guarantee By Company Disclosure ScreenGuarantee by SubsidiaryIf the subsidiary of a company has given the guarantee for the loans borrowed by the Company, inSubsidiary Information, enable the option Guarantee by subsidiary for loans borrowed bycompany to Yes to view Guarantee by Subsidiary screen.In Guarantee by Subsidiary information, details of guarantee given by the Subsidiary for theloans borrowed by company. Here, the information’s likes the name of company (who haveborrowed the loan), Name of Guaranteed Party, CIN of Guaranteed Party and the Amount Guar-anteed on Loan Borrowed by company will be captured. Figure 3.29 Guarantee By Subsidiary Disclosure Screen 59
  65. 65. Configure Additional Details3.16 Deferred Tax Assets and LiabilitiesUnder Accounting Standard (AS) 22, every enterprise has to disclose the details of deferred taxassets and liabilities. In Deferred Tax Assets and Liabilities information, enter the details ofdeferred asset/liability along with net non-current/current deferred tax asset/ liability, identificationof deferred asset/Liability, adjustments of deferred tax assets/liabilities, deferred assets/liabilitynot recognized and the supporting for recognition of deferred tax assets, unabsorbed depreciationand carry forward losses.1. Company can disclose Deferred Tax Assets and Liabilities details, by setting the fieldProvide complete details in a text block to Yes  Users can disclose the details in Text block (Typing/ Copy & Paste) or attach the Word file by specifying the word file path. OR2. If the company is not interested in disclosing Deferred Tax Assets and Liabilities details inthe text block, then the information can be entered in appropriate taxonomy elements.The completed Deferred Tax Assets and Liabilities screen appears as shown: Figure 3.30 Deferred Tax Assets and Liabilities Disclosure Screen Click on T: Write Text button or press Alt+T keys to get the Text Block to Write Text. If information is not disclosed in the text block, then it is mandatory to enter details for all the taxonomy elements. 60

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