XBRL filings for MCA By: IRIS Business Services Ltd.
Our presentation today• About IRIS• What & Why of XBRL?• What is MCA mandate all about?• Approaches• IRIS offerings
XBRL - not new to India IRIS is awarded MCA & SEBI project to adopt XBRL Corpfiling – India becomes a convert the IRIS does a Pilot XBRL based provisional historical filings for SEBI for MF filing platform jurisdiction of of US Companies adopted by BSE XBRL into XBRL and NSE International format ICERS – IRIS’ XBRL IRIS develops based filing MF taxonomy platform was for SEBI developed for BSE ICAI develops XBRL taxonomy Corpfiling – IRIS’ XBRL based on Indian based filing platform is RBI launches IRIS’ GAAP (built by made mandatory by SEBI XBRL based filing IRIS) platform for Capital Adequacy Returns
IRIS – our rich XBRL experience Developed FinX, software Entered into a strategic partnership with Outsourced XBRL platform to create XBRL Merrill Corporation in the US Services offering to help instance documents Awards full scale iFile implementation by JSE create XBRL repository in Built Indian XBRL database US for Edgar Online ( 20000+ Documents) Worked on developing Proton, as its next generation application for XBRL document creationEntered Developed iFile, XBRL Awarded project by the State of Nevada, based filing solution USA for Debt Collections and AccountsXBRL first deployed at the The Reserve Bank of India launches IRIS’ XBRL Receivables (iFile)domain Bombay Stock based filing platform Exchange Project in Macedonia for XBRL solution for IRIS’ XBRL based filing platform for stock the business registry exchanges is modified to meet filing requirements of the Bombay Stock Exchange Launched iXBRL conversion services for UK to and National Stock Exchange meet HMRC requirement; converted over 100 documents The Institute of Chartered Accountants of India Won contract from the Emirates Securities ICAI asked IRIS to build the Indian XBRL and Commodities Authority to implement taxonomy iFile iFile pilot is implemented at the JSE
IRIS’ XBRL practice• XBRL practice of ~ 700 people, including taxonomy specialists, XBRL analysts and XBRL technologists• Closely involved with the XBRL standard setting at the international level, hold the Chair of Taxonomy Architecture Working Group at XBRL International, and present in several other committees• Involved with every single regulatory XBRL implementation in India, and have clients across 8 countries in the XBRL space.• Rich experience in conversion services in Indian , US and UK markets; with strong established practices over the past four years.• Own several software applications in the XBRL space for XBRL document creation, validation, end to end XBRL filing platform and mapping from legacy systems to XBRL formats
What is XBRL? XBRL (eXtensible Business Reporting Language)• XBRL is Tagged Data (Meta-Data - Machine Readable) – Standard way to communicate business and financial information – Defined by meta-data set out in taxonomies which capture the definition of individual reporting concepts and the relationships between them. XBRL - The “Bar Code” of the Business Reporting World.
Key BenefitsStandardization - Standardized, yet extensible• Reduce costs by standardizing the reporting formatAccuracy - Validation at the point of data generation itself• Immediate validation through XBRL as well as business rulesRe- purposability - Enter data once, render in many forms• Quick generation of information and reports by end usersTechnology independent - Open, royalty free standard• Reduces costInclusion - Language properties of XBRL can be leveraged to render same data in multiple languages• Allows firms to reach out to a larger community of investors
What is the MCA mandate..MCA mandate• Circular issued on March 31,2011 to mandate financial reporting in XBRL from the year 2010-2011.• Listed companies and their subsidiaries (excluding overseas subsidiaries), as well as unlisted companies having paid up capital of Rs. 5 Crore and above or a turnover of Rs. 100 Crore or above.• Excludes banking companies, insurance companies, power companies, Non Banking Financial Companies (NBFCs). Important Dates to remember Companies can start filing their XBRL documents by August, 2011. The last date of filing for companies is November 30, 2011 or within 60 days of their due date, whichever is later without paying any additional filing fee.
The MCA Taxonomy• Based on – Schedule VI, Companies Act – Accounting Standards – MCA specific requirements – Other regulatory requirements• Around 3000 concepts included in taxonomy• Broad industry classification – Commercial and Industrial companies – Banking companies* – NBFC* – Insurance & Power* * Not required to file by November 30, 2011
What do Companies need to file in XBRL?Balance Sheet and Profit & Loss Account• Balance sheet and its schedules,• Income statement and its schedules,• Cash flow statementSelective information from Notes to accounts• Subsidiary related information• Related party information• Foreign Exchange earnings and outgo• Debenture details• Information on associates/joint ventures• Director details• Share capital information
What do Companies need to file in XBRL?Block tag the following information blocks• Auditor’s report• Directors’ report• All notes (every individual note) Block Tagging means capturing group of information as one single fact, using one single tag from the taxonomy
What options companies can exploreUse internal resources - Buy Software to create the XBRL document Advantages: Cost, ability to manage the process internally Disadvantages: Need fair amount of XBRL expertise, which takes time to build. Also, software applications will not facilitate tag selection or help in resolving validation errors. This typically could result in a larger ‘Total Cost of Ownership’ of the XBRL document creation than anticipated.Outsource to XBRL experts Advantages: End to end service providers, assure filing ready document with quality, available for clarifications and discussions during review process Disadvantages: Perceived initial cost is higher, since it includes software + services of XBRL experts
Approach - Using Internal ResourcesA firm must be prepared to:• Establish the internal team responsible for the work, which will generally include representatives from external reporting, legal, IT and investor relations.• Review all applicable MCA rules.• Purchase and become proficient in using XBRL software.• Become familiar with the MCAs XBRL filing manual• Become familiar with the XBRL Preparer’s Guide.• Review and validate that document.• File the data with the MCA
Approach – Outsource to XBRL Experts• Identify an XBRL firm experienced in filing.• Provide current year’s annual report to the XBRL Firm.• Ensure that the vendor is adequately staffed and the turnaround time is to your satisfaction.• Receive the XBRL Documents and file the same.
Suggested XBRL Road Map for Companies• Start with outsourcing MCA related XBRL compliance to experts in the first year IRIS - with an experience of converting more than 20,000 documents in XBRL across Indian, US and UK Markets - is ideally suited to meet your filing requirements• Create the infrastructure by building core XBRL competencies within the organization – XBRL training – Develop Internal Team to facilitate the company’s XBRL plans – Evaluate the use of XBRL at a deeper level within your own enterprise for operational efficiencies
Conversion Service - Credentials• IRIS has over 7 years of experience in XBRL conversions, and has an XBRL expert pool of 400+ resources• IRIS already supports large number of companies in India, US, UK and other countries in generating XBRL filings, which are required to be filed with the regulators including the US SEC and UK HMRC.• Well qualified, trained and experienced accounting professionals along with the technical experts in the core conversion team is our strength.• Extensive experience in developing taxonomies and have built the C & I and Banking Taxonomy for India on behalf of the Institute of Chartered Accountants of India.• Large scale, well established and robust processes
Conversion Service - Features• Receive a completely high quality, validated document that is filing ready.• Filing validated both against the XBRL rules and MCA filing rules, ensuring complete compliance• High level of quality, with separate domain and XBRL tech related quality specialists that review each document, as well a final QC lead that signs off on each document• Relationship Managers and Project Managers that interact with clients through the conversion process, for any tagging decisions that need review• A strong pool of XBRL analysts with experience in handling documents across industries and sectors
Conversion Service - Benefits• Personalized attention to every client• No worries of additional compliance for the companies• Not required to evaluate and implement any software• No training required for the workforce• Tools will be provided to view and review the XBRL document• Cost Effective• Timely and accurate output
What IRIS will deliver ?• Validated XBRL Document as per the MCA mandate.• Excel report, enabling easy audit review of tag selection• Ability to load and review the document on the IRIS Web rendering service• Relationship Managers, who will facilitate the entire process as well as interactions with clients on tagging decisions that need review
Conversion Service –Your Firm’s Role• Organize a kick off meeting with IRIS• IRIS RM might call you for clarifications, if any.• Once the Validated XBRL Document is given along with the Excel report, you may like to check the mapping and seek any clarifications from IRIS on specific mapping decisions.• Upload the document at the MCA’s Portal