How XBRL works and how it makes business reporting more efficient?

Often termed “bar codes for reporting”, XBRL makes reporting more accurate and more efficient. It allows unique tags to be associated with reported facts, allowing: people publishing reports to do so with confidence that the information contained in them can be consumed and analysed accurately.

What do you mean by XBRL and how does it work?

XBRl (Extensible Business Reporting Language) is an open standard mark-up language optimized for business information, but not limited to financial and accounting information. This makes use of the transmission of business and financial information to multiple company stakeholders and regulators.

How do I use XBRL?

Filing Manual

1. Step 1 – Creation of XBRL instance document:
2. Step 2 – Download XBRL validation tool from MCA portal.
3. Step 3 – Use the tool to validate the instance document.
4. Step 4: Perform pre-scrutiny of the validated instance document through the tool.
5. Step 5: Attach instance document to the Form 23AC and Form 23ACA.

How do accountants use XBRL?

XBRL enables preparers to utilize software to tag all financial items in their business reports to the elements within a taxonomy. This is accomplished with an Instance Document which can be electronically exchanged and validated between computers or viewed in a human readable format (this is called rendering).

How can XBRL benefits the organizations?

The benefits are seen in automation, cost saving, faster, more reliable and more accurate handling of data, improved analysis and in better quality of information and decision-making. All types of organisations can use XBRL to save costs and improve efficiency in handling business and financial information.

What is XBRL tagging?

XBRL tagging is a unique solution to taxonomy issues that occur in conventional accounting formats. By leveraging the usage of meta-data tags in a variety of different financial statements and filings, machines can easily interpret and process information.

Where is XBRL mandatory?

Applicability of XBRL filing All companies with a turnover of Rs 100 crores or more. All companies with a paid up capital of Rs 5 crores or more. All the companies which are required to prepare their financial statements in accordance with the Companies ( Indian Accounting standards) rules, 2015.

Is XBRL restricted to financial?

XBRL is used not only in financial reporting but has been used by bank regulators to determine the level of capital adequacy and solvency of financial institutions.

Why is XBRL needed?

XBRL offers major benefits at all stages of business reporting and analysis. The benefits are seen in automation, cost saving, faster, more reliable and more accurate handling of data, improved analysis and in better quality of information and decision-making.

How does XBRL help regulatory bodies?

Benefits of XBRL (b) Regulatory Reporting: XBRL can provide investors and other government agencies with increased data integrity and uniformity. It can also allow for increased transparency of public owned companies’ financial records for view by ‘interested’ parties.

What is XBRL used for?

eXtensible Business Reporting Language (XBRL) is a type of XML (extensible markup language), which is a specification that is used for organizing and defining data. XBRL uses tags to identify each piece of financial data, which then allows it to be used programmatically by an XBRL-compatible program.

What is the history of XBRL?

The short history of XBRL is traced back to 1998. In April 1998, Charles Hoffman , a CPA with the firm Knight Vale and Gregory in Tacoma, Washington investigated XML for the electronic reporting of financial information.

What is XBRL taxonomy?

XBRL Taxonomy. An XBRL Taxonomy is a collection of taxonomy schemas and linkbases. A taxonomy schema is an XML schema document (file). Linkbases are XML documents (file) which follow the XLink specification.

XBRL tagging is the process by which any financial data is tagged with the most appropriate element in an accounting taxonomy (a dictionary of accounting terms) that best represents the data in addition to tags that facilitate identification/classification (such as enterprise, reporting period, reporting currency, unit of measurement etc).