Basics of XBRL - The New World of Business Accounts Reporting

1. XBRL
eXtensible Business Reporting Language
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

2. XBRL
• XBRL translates long form financial data
both from the tables and the footnotes in
financial reports, into a format that
computers can read and understand.
• The initial goal of XBRL is to provide an
XML-based framework that the global
business information supply chain will use
to create, exchange and analyse financial
reporting information.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

3. XBRL
• XBRL is a data-rich dialect of XML, the
universally preferred language for
transmitting information via the internet.
• It was developed specifically to
communicate information between
businesses and other users of financial
information, such as analysts, investors
and regulators.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

4. XBRL
XML stands for eXtensible Mark-up Language.
• Extensible means language that can be
extended by anyone who wants to create
additional ways to use it.
• Mark-up means that XML’s primary task is to
give definition to text and symbols.
• Language means that XML is a method of
presenting information in understandable
formats.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

5. XBRL
• XBRL provides a common, electronic
format for business reporting. It does not
change what is being reported but only
changes how it is reported.
• XBRL is a worldwide standard, developed
by an international, non-profit-making
consortium.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

6. XBRL Framework
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

7. XBRL in MCA
Ministry of Corporate Affairs vide its General Circular No.
09/2011 dated 31.03.2011 mandated certain class of
Companies who are covered under Phase I.
Following class of companies are required to file their
Balance Sheet and Statement of Profit & Loss in XBRL
format:
i. All companies listed in India and their subsidiaries
ii. All companies having a paid up capital of Rs. 5 crore
and above
iii. All companies having a turnover of Rs. 100 crore and
above
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

8. CA. Kishor Dichwalkar,
ca.ksdco@gmail.com
• Ordinary users of XBRL may be largely or totally
unaware of the technical infrastructure which
underpins the language. However, software
companies, such as accountancy software
providers, need to take account of XBRL and its
features when producing their products.
• Now we will see a small example of XBRL -- intended
for reading by computers, not humans. To see what
it represents
How does XBRL Works

9. CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

10. CA. Kishor Dichwalkar,
ca.ksdco@gmail.com
The same XBRL data in Human
Readable form:

11. Process of XBRL conversion
Step 1
• Obtain audited Financial Statements
Step 2
• Prepare Source Document
Step 3
• Mapping of Source Document with MCA
mandated Taxonomy.
Step 4
• Validating the mapped document and Error
Elimination.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

12. Process of XBRL conversion
Step 5
• Elimination of Errors
Step 6
• Approval from Board and
Instance Document Creation
Step 7
• Validation of Instance Document
with MCA tool and filing with ROC
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

13. Taxonomy
Taxonomy can be referred as an electronic dictionary of
the reporting concepts. Taxonomy consists of all data
definitions, the basic XBRL properties and the
interrelationships amongst the concepts. It includes terms
such as net income, EPS, cash, etc. Each term has specific
attributes that help define it, including label and definition
and potentially references. Taxonomies may represent
hundreds or even thousands of individual business
reporting concepts, mathematical and definitional
relationships among them, along with text labels in multiple
languages, references to authoritative literature, and
information about how to display each concept to a user
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

14. Instance Document
Instance document is a business report in an
electronic format created according to the rules of
XBRL. It contains facts that are defined by the
elements in the taxonomy it refers to, together with
their values and an explanation of the context in
which they are placed. XBRL Instances contain the
reported data with their values and “contexts”.
Instance document must be linked to at least one
taxonomy, which defines the contexts, labels or
references.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

15. Documents required for
XBRL Conversion
a. Audited Accounts – Balance Sheet,
Statement of Profit & Loss and Cash
Flow Statement
b. Director’s Report
c. Auditor’s Report
d. Subsidiary Company Information
e. Additional Information required under
XBRL Taxonomy
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

16. Steps for filing financial statements
in XBRL format on MCA portal
• Creation of XBRL instance document
• Download XBRL validation tool
• Locate/Load the instance document
• Validate the instance document
• Pre-scrutiny of instance document
• Convert to pdf and verify the contents of instance document
• Attach instance document to the Form 23AC-XBRL and Form
23ACA-XBRL
• Submitting the Form 23AC-XBRL and Form 23ACA-XBRL on
the MCA portal
• Viewing of Balance Sheet and Statement of Profit & Loss
submitted in XBRL form on MCA portal
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

17. XBRL India
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

18. Formation of a group on XBRL
in India
In the year 2007 the Institute of
Chartered Accountants of India
(ICAI), the premier accounting body
and the National Standard setter
constituted a Group for promotion
and development of XBRL in India.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

19. Support of Regulators
The group had representatives of the major
regulators in India viz. the
• Securities and Exchange Board of India (SEBI)
• Ministry of Corporate Affairs (MCA)
• Reserve Bank of India (RBI)
• Insurance Regulatory and Development Authority
(IRDA)
• National Stock Exchange (NSE)
• Bombay Stock Exchange (BSE)
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

20. XBRL India
In the year 2008, ICAI set up an Indian
XBRL Jurisdiction in the year 2009 as an
extended arm of XBRL International in
India. The Jurisdiction was Provisional in
nature for a period of 2 years.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

21. XBRL India – an Established
Jurisdiction
In the year 2010,
XBRL India was awarded the status of an
“Established jurisdiction” capable of
having a representative of India at the
International Steering Committee (ISC),
the governing body of XBRL International.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

22. XBRL India – A Company
‘XBRL India’ is now a company registered
U/s 25 of Companies Act, 1956. The
company is facilitated by ICAI.
It has been incorporated for managing the
affairs of Indian Jurisdiction of XBRL
International.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

23. Website of XBRL India
A separate website dedicated to the XBRL
India Jurisdiction to keep members and
other users aware about the Indian XBRL
Jurisdiction has been set up by the ICAI.
Its URL is www.xbrl.org/in.
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

24. WHY XBRL?
Advantages of XBRL:
• Standard – XBRL is a standard that has been
accepted and adopted the world over, thus
reducing inconsistencies in terminologies and
data formatting
• Accuracy – XBRL provides highly accurate data
as the data can be both calculated and verified
• Speed – XBRL allows much faster and real-time
preparation of reports and at the same time
allows efficient, accurate and relevant ways to
search data
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com

25. • Reusable – XBRL data once entered can be
reused to represent the same data in multiple
ways and multiple formats
• Platform Independent – XBRL is an open
standard and hence platform independent, this
allows the data to be exchanged and transferred
with ease
• Region Independent – XBRL allows the
presentation and exchange of data in many
different languages
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com
WHY XBRL?
Advantages of XBRL:

26. Thank You
CA. Kishor Dichwalkar,
ca.ksdco@gmail.com