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Installation Guide XBRL Software [Zen Exbace] on Windows XP


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eXBace:: Get a complete Installation guide on XBRL Software.

Find flexible solution for financial information interchange of companies. eXBace is a streamline filing of financial statements as per MCA specifications.

Installation Guide XBRL Software [Zen Exbace] on Windows XP

  1. 2. <ul><li>e X tensible </li></ul><ul><li>B usiness </li></ul><ul><li>R eporting </li></ul><ul><li>L anguage </li></ul><ul><li>XBRL is a manifestation of XML, a universally preferred language to communicate business and financial information. </li></ul><ul><li>It was developed specifically to communicate information between businesses and other users of financial information, such as analysts, investors and regulators & provides a common, electronic format for business reporting. </li></ul><ul><li>It does not change what is being reported. It only changes how it is reported </li></ul>
  2. 3. <ul><li>In April 1998, Charles Hoffman, investigated XML for the electronic reporting of financial information. </li></ul><ul><li>Charlie informed AICPA High Tech Task Force, in July 1998 about the potential of using XML in financial reporting. </li></ul><ul><li>The prototype was completed in October, 1999 </li></ul><ul><li>The first meeting of the XFRML Steering Committee took place in 1999 & thereafter the name was officially changed to the XBRL steering committee on April 6, 2000. </li></ul>
  3. 4. XBRL INTERNATIONAL…XBRL IN INDIA <ul><li>Not for profit consortium of approximately 650 companies and agencies worldwide working together to build the XBRL language and promote and support its adoption. </li></ul><ul><li>XBRL Jurisdiction, i.e., XBRL India of XBRL International (XII) has been constituted in 2007. </li></ul><ul><li>XBRL India, company registered u/s 25 of the companies Act, 1956 facilitated and established by ICAI would help in building a formal forum for encouraging the adoption of XBRL in India as the standard for electronic business reporting in India, shall develop and manage XBRL taxonomies. </li></ul>
  4. 5. XBRL MANDATE <ul><li>The Ministry of Corporate Affairs (MCA) in India has made it mandatory for certain class of companies (Phase 1) to file balance sheets and profit and loss accounts for the financial year 2010-11 onwards by using XBRL. </li></ul><ul><li>IT INCLUDES </li></ul><ul><li>1. All Listed Companies in India and their Indian subsidiaries. </li></ul><ul><li>2. All companies having a paid up capital of Rs.5 Crore & </li></ul><ul><li>above OR a Turnover of Rs 100 Crore or above.  </li></ul>
  5. 6. SCOPE OF XBRL FILING <ul><li>Balance Sheet </li></ul><ul><li>Profit & Loss Account </li></ul><ul><li>Schedule of Balance Sheet and Profit & Loss </li></ul><ul><li>Cash Flow Statements </li></ul><ul><li>Notes To Accounts </li></ul><ul><li>Directors Report </li></ul><ul><li>Auditors Report </li></ul><ul><li>Section 212 Statements relating to subsidiary companies </li></ul><ul><li>Disclosure specific to companies Act </li></ul>
  6. 7. XBRL TAXONOMY <ul><li>Different countries use different accounting standards. Reporting under each standard reflects differing definitions. </li></ul><ul><li>The XBRL language uses different dictionaries, known as ‘taxonomies’, to define the specific tags used for each standard. </li></ul><ul><li>Taxonomies are the computer-readable ‘dictionaries’ of XBRL. Taxonomies provide definitions for XBRL tags, they provide information about the tags, and they organize the tags so that they have a meaningful structure. </li></ul><ul><li>As a result, taxonomies enable computers with XBRL software to: </li></ul><ul><ul><li>understand what the tag is (eg whether it is a monetary item, a percentage or text); </li></ul></ul><ul><ul><li>what characteristics the tag has (eg if it has a negative value); </li></ul></ul><ul><ul><li>its relationship to other items (eg if it is part of a calculation). </li></ul></ul>
  7. 8. MCA TAXONOMY <ul><li>The taxonomy is based on Schedule VI requirements, Accounting Standards issued by ICAI, MCA specific requirements and other regulatory requirements. The current version of taxonomy is for Commercial and Industrial companies. </li></ul><ul><li>An analysis of MCA Taxonomy is as follows: </li></ul><ul><li>3,187 Number of elements. </li></ul><ul><li>23 Tuples </li></ul><ul><li>395 Business rules </li></ul><ul><li>Every elements covered in 55 extended links. </li></ul>
  8. 9. C&I TAXNOMY <ul><li>The Commercial & Industrial (C&I) Taxonomy is general purpose taxonomy and can be used by the entire Commercial & Industrial companies. This taxonomy has been developed to enable companies prepare their financial statements, viz., P&L statement, Balance Sheet and Cash Flow statement in XBRL format, based on the requirements of the Accounting Standards and Indian company law. </li></ul><ul><li>This taxonomy has also been acknowledged by XBRL International. </li></ul>
  9. 10. XBRL IN DETAIL <ul><li>is based on the extensible Markup Language (XML). “XML is set of rules for defining semantic tags that break a document into parts and identify the different parts of the document. Because of that XML is appropriate for standardized tagging and exchange of electronic data. </li></ul><ul><li>Further XML was born as more general purpose mark up language that allows users to define their own tags”. This is the major difference to non-extensible languages like HTML, which merely describes the appearances of information while XML and hence XBRL describes the information itself. By that, XML and XBRL allow individual to specify the language and adjust it to their individual needs. </li></ul><ul><li>eg.<cost_of_goods_sold>10100000</cost_of_goods_sold> </li></ul>
  10. 11. … ..SO HOW DOES XBRL WORKS FOR FINANCIAL REPORTING <ul><li>Eg: Think of every fact in an annual report, every number in a company’s financial statements as having a unique barcode that tells standard software what the item represents and how it relates to other items in the report. </li></ul><ul><li>XBRL provides an identifying tag (analogous to the “barcode”) for each individual items of financial data. For example, “net income” has its own unique tag, which a computer can read, understand and treat “intelligently” </li></ul><ul><li>Also, In layman, Taxonomy is simply the collection of predefined tags to affix the financial data </li></ul><ul><li>  </li></ul><TOTAL INCOME>10100000</TOTAL INCOME>
  11. 12. <ul><li>The software affix an XBRL tag to each number on the balance sheet. For example, the tag affixed to the Rs. 100 “Cash” amount will have a descriptive name, such as “Cash”. Once the tag is affixed, any software capable of reading XBRL will be able to determine that the Rs. 100 amount represents Cash, which is current assets, and that the Rs. 100 amount rolls up into the “Total Current Assets” and “Total Assets” subtotal. </li></ul><ul><li>The tag also provides </li></ul><ul><li>A definition, </li></ul><ul><li>The currency in which the amount is being reported (eg Rupee) </li></ul><ul><li>The related period for which the amount is being reported (e.g. as of November 30th 2011) </li></ul><ul><li>The elements as defined in Taxonomy are also referred as XBRL tags or only tags. E.g. Source of Funds, Interest Charges </li></ul>
  12. 13. <ul><li>XBRL consists of several items, which are related to each other. “In XBRL, individual data items are called elements, which are combined into taxonomies (dictionaries) defined by schemas and relationships called linkbase. AN XBRL instance document is a business report in an electronic format created according to the rules of XBRL” </li></ul><ul><li>Taxonomies: Taxonomies which provide the elements that will be used to describe information and instances which provide the real content of the elements defined, are the main ingredients of XBRL. These taxonomies include a set of rules and provide the logic of the element. </li></ul>
  13. 14. <ul><li>KDK, <name>KDK</name> </li></ul><ul><li>A-40, Shyam Nagar, <address> </li></ul><ul><li>Jaipur-302019 <bldg>A 40,</bldg> </li></ul><ul><li>Rajasthan (India) <locality>shyam nagar</locality> <city> jaipur </city> </li></ul><ul><li> <state> rajasthan </state> </li></ul><ul><li> <country> india </country> </li></ul><ul><li> <post code> 302019 </postcode> </address> </li></ul>General Information Metadata
  14. 15. BEFORE XBRL
  15. 16. <ul><li>General Data/ XBRL Data </li></ul>Financial Information Information with Tags, Hierarchy & Relationships Financial Information XBRL Amount Sales Sales 1000 Cost (-) Cost 800 Profit Profit 200
  16. 17. <ul><li><?xml version=&quot;1.0&quot; encoding=&quot;utf-8&quot; ?> </li></ul><ul><li>- <!-- K.D.K. Software (I) Pvt. Ltd. *eXBace - 1.11.4   --> </li></ul><ul><li>- <xbrli:xbrl xmlns:xbrldt=&quot; &quot; xmlns:nonnum=&quot; &quot; xmlns:in-gaap-ci=&quot; &quot; xmlns:in-gaap-ci-roles=&quot; &quot; xmlns:link=&quot; &quot; xmlns:in-ca=&quot; &quot; xmlns:in-roles=&quot; &quot; xmlns:net=&quot; &quot; xmlns:num=&quot; &quot; xmlns:xlink=&quot; &quot; xmlns:iso4217=&quot; &quot; xmlns:xhtml=&quot; &quot; xmlns:in-gaap=&quot; &quot; xmlns:negated=&quot; &quot; xmlns:in-ca-types=&quot; &quot; xmlns:in-ca-roles=&quot; &quot; xmlns:xbrli=&quot; &quot; xmlns:xsi=&quot; &quot;> </li></ul><ul><li>  <link:schemaRef xlink:type=&quot; simple &quot; xlink:href=&quot; &quot; /> </li></ul><ul><li>- <xbrli:context id=&quot; I2010 &quot;> </li></ul><ul><li>- <xbrli:entity> </li></ul><ul><li>  <xbrli:identifier scheme=&quot; &quot;> U17297UP1994PLC016442 </xbrli:identifier> </li></ul><ul><li>  </xbrli:entity> </li></ul><ul><li>- <xbrli:period> </li></ul><ul><li>  <xbrli:instant> 2010-03-31 </xbrli:instant> </li></ul>
  17. 18. LINKBASE IN TAXNOMY Calculation Linkbase Taxonomy Presentation Linkbase Label Linkbase Reference Linkbase Formula Linkbase Definition Linkbase XBRL Instance Document
  18. 19. XBRL REPORT FORMAT <ul><li>The taxonomy and instance documents are combined to form the desired business report in XBRL format. The following diagram depicts an extract of Balance Sheet as it will appear in a business report. </li></ul>
  19. 20. XBRL FORMAT OVER CONVENTIONAL <ul><li>The advantages of XBRL data over conventional forms of data are given below: </li></ul><ul><li>Standard  -  XBRL is a standard that has been accepted and adopted the world over thus reducing inconsistencies in terminologies and data formatting. </li></ul><ul><li>Accuracy  -  XBRL provides highly accurate data as the data can be both calculated and verified. </li></ul><ul><li>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 </li></ul><ul><li>Reusable  -  XBRL data once entered can be reused to represent the same data in multiple ways and multiple formats. </li></ul><ul><li>Platform Independent  -  XBRL is an open standard and hence platform independent, this allows the data to be exchanged and transferred with ease. </li></ul><ul><li>Region Independent  -  XBRL allows the presentation and exchange of data in many different languages </li></ul>
  20. 21. BENEFITS OF XBRL <ul><li>Reduce reporting Burden </li></ul><ul><li>Improve the Data Timelines </li></ul><ul><li>Improve Data Accuracy </li></ul><ul><li>More Accurate and Less Burden </li></ul><ul><li>Simplify Programming Efforts </li></ul><ul><li>Improve Flexibility </li></ul>
  21. 22. MCA VALIDATION UTILITY <ul><li>The output from any Software needs to get validated by the MCA validation tool. The MCA validation tool is based on: </li></ul><ul><li>Taxonomy specified by MCA (available on MCA website) </li></ul><ul><li>MCA 21 Business rules (More than 700 in number including all dependencies etc.) </li></ul><ul><li>Technical specifications of XBRL international and MCA </li></ul>
  22. 23. LAST DATE FOR FILING <ul><li>30th November 2011; or </li></ul><ul><li>60 days from the due date of filing, </li></ul><ul><li>(whichever is later) </li></ul>
  23. 24. TERMINOLOGY <ul><li>Elements </li></ul><ul><li>Text Block </li></ul><ul><li>Footnotes </li></ul><ul><li>Tuple </li></ul><ul><li>Extensions </li></ul>
  24. 25. TAGGING <ul><li>Detailed </li></ul><ul><li>Capturing the granular fact (numeric or textual) </li></ul><ul><li>Block Text </li></ul><ul><li>Capturing group of information as one single </li></ul><ul><li>fact, using one single tag from the taxonomy </li></ul>
  25. 26. <ul><li>Step 1: Mapping of account heads in financial statement to corresponding element in Taxonomy. This will help convert the accounting information into XBRL form. Step 2: Create Instance document. An instance document is an XML file that contains business reporting information and represents a collection of financial facts and report specific information using tags from the XBRL taxonomy. Separate instance documents have to be created for the following with current as well as previous year financial data: </li></ul><ul><ul><li>Balance Sheet of the Company Profit &Loss account of the company </li></ul></ul><ul><ul><li>Step 3: Review and verify the instance document to ensure that all the information has been correctly captured in it. Step 4: Download XBRL validation tool from MCA portal as validating the instance document is a pre requisite for filing the returns. </li></ul></ul>
  26. 27. <ul><li>Step 5: Use the tool to validate the Instance document </li></ul><ul><li>to ascertain whether the Instance document is as per the latest and correct version of taxonomy. Step 6: Pre scrutiny of the validated instance document through the </li></ul><ul><li>tool for further validations from MCA21 portal. </li></ul><ul><li>Step 7: Attach Instance document to Form 23AC & </li></ul><ul><li>Form 23ACA and upload the same as per the normal e-filing </li></ul><ul><li>process. Step 8: View Balance Sheet and Profit & Loss submitted in XBRL form on MCA portal and certified copies of these documents can also be applied for. </li></ul>
  27. 28. <ul><li>1. Tagging We as professional need to understand how to interpret the taxonomy, which does not necessarily include understanding the language and its semantics. </li></ul><ul><li>As an professional, we should be able to appropriately link each element of the financial statements to the relevant element in the taxonomy. </li></ul><ul><li>After tagging the financial statement items, the file is validated against a set of predefined XBRL validation rules. </li></ul><ul><li>2. Standalone & Consolidated Report: The instance Document should be prepared based on the Standalone data. </li></ul><ul><li>Companies which are listed and are required and are required to prepare consolidated financial statements as per existing provisions of law, should prepare separate instance documents for standalone and for consolidated. </li></ul>
  28. 29. Scenarios Approach Required to be followed Scenario 1- The company has reported values for the elements under the existing provisions of Law Scenario 2- The company has not reported values for some of the elements mentioned as it is not required to do so under the existing provisions of Law. Scenario 3- The company has not reported values for some of the elements mentioned in the Annexure in the previous Year, while the same is reported for the current year or vice versa. Capture the Value in Instance Documents Capture the values reported by the company in the Instance document. Put Zero against the element, which is not reported by the company. Capture the current year values reported by the company in the instance document. Put zero against the element for the year in which the company has not reported any value.
  29. 30. 4. What would be the situation if holding and subsidiary company fall in different sector? Applicability of XBRL filing would as under
  30. 31. 5. If the subsidiary Company’s paid up capital is less than Rupees 5 Crore, then I want to know whether it is to be filed in XBRL format. Subsidiary of listed company is required to file in XBRL format, irrespective of its paid up capital.