This document summarizes an event on XBRL in India and discusses related issues and the way forward. It provides an agenda for the event including a preamble, discussion of issues and challenges with XBRL implementation in India, and recommendations for the way forward. Some of the key issues discussed include the lack of use of XBRL tagged financial data by regulators in India, need to follow international best practices, certification versus auditing of XBRL filings, and lack of training on XBRL. The way forward discusses recommendations like considering inline XBRL for regulatory filings, adopting international data quality standards, treating auditor involvement as an audit, and using XBRL data for analytics.

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International Conference & Exhibition
BLOCKCHAIN DUBAI 2021
June 16-17, 2021
Kumar Kushal
Global CTO, Tiller
International
Subhash Chandra Garg
Former Finance Secretary of
India
Derick Smith
La Tokens
Alexandra N Reichert
Founder, Star Rising GMBH
Vinod Kashyap
Director, NextGen,
ASSOCHAM
International XBRL Conference 2021
Friday, June 18, 2021
XBRL in India: Issues, Challenges and Way Forward
Presented by:
Vinod Kashyap
NextGen Knowledge Solutions Private Ltd.

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Agenda
o Preamble
o Issues and Challenges
o Way Forward
o Q & A

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Preamble

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Paradigm Shift
Traditional Format XBRL Format
Human Readable Machine Readable

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• All companies listed in India and their Indian
Subsidiaries
• All companies having a paid-up capital of Rs. Five
Crores and above
• All companies having a turnover of Rs. Hundred
Crores and above
Coverage in Phase – I
Key Points
Filing of Financial Statements in XBRL format
started from FY 2010-11 onwards
Certification of XBRL Financial Statements
filed at MCA by members of Chartered
Accountants / Company Secretaries / Cost
Accountants
There are about 28,000 companies covered
in XBRL filing at MCA
XBRL Filing at MCA

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XBRL Filing at MCA Cont.…
Subhash Chand Garg
Former Finance Secretary of India
“Shifting of 1.3 Million active Indian companies to
digital only accounting, auditing and financial
reporting will strengthen governance.”

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Issues and Challenges

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MCA has not been able to use
XBRL tagged financial data of
companies
Data not used
for Analytics
International Best Practices on
XBRL need to be followed
International Best
Practices
Involvement of auditor in XBRL
filing at MCA has been
described as “Certification”.
Certification or
Audit
Lack of regular training
programs or
conferences on XBRL
Training /
conferences
Data Quality of XBRL tagged
financial data at MCA has not
been as desired.
Data Quality
ISSUES AND CHALLENGES
8

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XBRL tagged financial data not used by MCA
Source : Financial Express

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Poor Quality of XBRL Filings

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A Field Study Examining the Indian Ministry of Corporate Affairs’ XBRL Implementation

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Involvement of Auditor in MCA Filing: “Certification” or “Audit” ?
India: Certification European Union: Audit

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Training / Conferences on XBRL

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WEBSITE
STAKEHOLDERS
INVOLVEMENT
COMMITTEES
DATA QUALITY
• Every XBRL jurisdiction has a dedicated Website which provide necessary information
• XBRL India Website address when XBRL was launched in India : http://www.xbrl.org.in/
• Now XBRL India has a Page at XBRL International Website : http://www.in.xbrl.org/
• Accounting Body, Software Vendors, Accounting Firms, etc.
• XBRL India has only two members as on date : ICAI & ICSI
• Lack of involvement of Software Vendors and Top Accounting Firms
• XBRL India has Membership Development Committee , Taxonomy Development Committee and Audit Committee
• Performance of these committees
• Data Quality Committee - Required
• Rules and Guidance, Software Certification, Center for Data Quality required
COMPONENTS DESCRIPTION
International Best Practices

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XBRL India Website in 2011-12
http://www.xbrl.org.in/

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XBRL India Website in 2011-12

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XBRL India Website now…
http://www.xbrl.org.in/

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Website of XBRL International has a page on XBRL India now
http://www.in.xbrl.org/

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Members – XBRL India

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Committees of XBRL India

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Way Forward

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Way Forward…
Regulatory Filings in India
“Audit” of XBRL
Adoption of
iXBRL
Data Quality
Data Analytics
In Line XBRL or iXBRL may be
considered for regulatory filings.
e.g. iXBRL filings at SEC, US,
HMRC and Company House, UK.
International Best Practices on Data
Quality be adopted by making
XBRL data quality rules.
e.g. Data Quality Rules and
Guidance made by Center for Data
Quality and Data Quality
Committee at XBRL US
Involvement of auditor in MCA
filings be considered as “audit”.
e.g. CEAOB guidance on
involvement of auditor in ESEF
filings in European Union.
XBRL tagged financial data be used
for fraud detection and data
analytics purposes at MCA.
e.g. Data Analytics at SEC, US

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In Line XBRL (Human and Machine Readable)
Global Legal Entity Identifier Report 2018
iXBRL, or Inline XBRL, is an open standard that enables a single document to provide both human-readable
and structured, machine-readable data.

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SEC adopted iXBRL
reporting requirement in
2018 in a phased manner
with three years
implementation period.
SEC, US
HMRC &
Company House, UK
Over two million
companies file iXBRL at
HMRC, (Tax Authority)
and Company House.
JFSA, Japan
9,000 companies and
funds are submitting
their financial data to
Japan Financial Services
Agencies (JFSA), Japan.
Danish Business Registrar ,
Denmark
Danish Business
Registrar has collected
over 100,000 iXBRL
formatted financial
statements for
registration and market
information.
ESMA, EU
European Securities
Market Authority
(ESMA) has announced
ESEF filing for all listed
companies in Europe.
Regulators using iXBRL

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Udyog Manthan: Webinar on Accounting and Finance Service Industry

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Recommendations made by Quality Council of India to Ministry
• Areas of auditing need attention, and adoption of the following international best
practices will help in bringing improvement in audit quality:
• Audit Data Standards (ADS) and Audit of XBRL
• Lack of standardization of audit data is the biggest obstacle in digital transformation of
auditing
• International Standards for audit data collection should be adopted in India
• Involvement of auditor in XBRL filing at MCA should be treated as “audit”.
Recommendations

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Data Quality
Source : XBRL US

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Data Analytics
• XBRL tagged financial data of companies (Structured Data) is computer readable and should be used for data analytics
purposes
• Useful insights to regulators
• Investors and investment analysis

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“No matter how complex things are,
basically everything is simple.”
Questions

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THANK
YOU

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Vinod Kashyap
Email : vinod.Kashyap@nextgenknowledge.com