X B R L
-the digital future of business reporting October 24, 2012 CA S.HariharanMCA Mandate on adoption of XBRL Taxonomy 2012 Approach to XBRL Quality of XBRL filings Challenges in XBRL filings 2012
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INTRODUCTION TO XBRL -digitalizing future
UNDERSTANDING XBRL THROUGH THE CONCEPT OF 5 W’S What When Whom
Where
Why New Business Reporting Language which originated from “XML”
Applicable for Financial Year 2010-2011 onwardsDeveloped by “XBRL International Inc.” Common Business Reporting Language which is easy to prepare, analyze and communicate the Information •All listed companies and their Indian subsidiaries, •All companies with paid capital of Rs. 5 Crore and above •All companies with turnover of Rs. 100 Crore or above •All companies to whom XBRL filing was applicable for FY 10-11 (for FY 11-12)
X B R L
eXtensibleBusinessReportingLanguage (XBRL) -a new way to present core financial information. An XML-defined standard used for analyzing, exchanging and reporting financial and other business information. XML based electronic language to exchange financial information Intelligent data that identifies and validates information Supports different languages and accounting standards Seamless flow of information between different applications regardless of the source. XBRL is a royalty-free and open standard Currently over 400 member organizations from around the world participate in the XBRL Consortium’s development efforts. Participants include professional services firms, software developers and trade organizations as well as exchanges, financial regulators, tax authorities and many others. Flexible to adapted different requirements of users
W h a t is X B R L?
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T h e R is e o f X B R L
Corporate Financial Reporting Practices are undergoing a fundamental transformation Increased public scrutiny of financial results and accounting controls Increased regulatory oversight Impending threat of mandatory XBRL public filings Speedy, efficient and accurate access and analysis of financial information internally and externally Improve corporate communication with stakeholders Reduced financial data processing speeds by new technologyX B R L is t h e f in a n ci a l s ta n d a rd d e si g n e d t o s o lv e t h e p ro b le m s fa ci n g t h e f in a n ci a l w o rl d t o d a y
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P re X B R L D a ta E xc h a n g e
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P o st X B R L D a ta E xc h a n g e
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A n a to m y o f a n X B R L Ta xo n o m y - - X B R L F ra m e w o rk
CalculationDefinitionPresentationFootnoteLabelReference
Schema.xsd Linkbases.xml
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X B R L P ro je ct s in I n d ia
Reserve Bank of India (RBI) RBI (India’s central bank) has introduced eXtensible Business Reporting Language (XBRL) based data submission process by banks using internet and Indian Financial Network (INFINET). In the phase I, a sizable portion of domestic banking business (7 returns) of the Indian banks was covered Now, RBI is working on the Phase II and already floated the RFPs (Request for Proposal) for the same Ministry of Company Affairs (MCA) The Ministry of Corporate Affairs (MCA) has mandated filing of annual returns in XBRL Format for certain class of Companies for the financial year commencing on or after 1st April, 2010 MCA also mandated Filing of Cost Audit Report and Compliance Report in the XBRL mode for the year 2011-12 onwards Securities and Exchange Board of India (SEBI) Securities and Exchange Board of India (SEBI is in the process of setting up a SEBI Unified Platform for Electronic Reporting and Dissemination (SUPER-D), which will be a XBRL (eXtensible Business Reporting Language) technology based platform for reporting by listed companies, Mutual Funds and other SEBI registered intermediaries.This i
X B R L In d ia – R o a d a h e a d
Central Electricity Regulatory Commission (CERC), the regulator for approval of tariffs for all power projects in India, is also in the process of implementing XBRL It is proposed to design the XBRL Certification Programs in India for the promotion and education of XBRL in India. Spread the use of XBRL at the GL (General Ledger) level so that the companies can derive its benefits internally Facilitating education in XBRL through a series of workshops, seminars and conferences. Roping in other regulators like CBDT/ IRDA for implementing XBRL in their reporting requirements. Launching a certificate e-learning course on XBRL Adapting XBRL for non-financial reporting 1 1MCA MANDATE ON XBRL
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M C A M a n d a te o n X B R L
File Balance sheet, Statement of Profit and Loss and other disclosures for the year 2011 -12 onwards in XBRL format Phase I coverage includes: All Companies listed with any Stock Exchange(s) in India and their Indian subsidiaries All companies having a paid up capital of INR 5 Crore or above All Companies having a turnover of INR 100 Crore or above All companies who were required to file their financial statements for FY 2010- 11, using XBRL mode This implies that the filing entities remains same as the last year Power companies, banking companies, insurance companies, NBFCs are excluded from XBRL filings.M C A M a n d a te o n X B R L
Filing process for companies Balance sheet, Statement of Profit and Loss, Accounting policies and Notes to Accounts along with Director’s and Auditor’s report are to be filed in XBRL format Standalone Financial Reporting and Consolidated Financial Reporting are prepared and generated as separate instances. XBRL Instance document to be filed as an attachment to the e-forms 23 AC and 23 ACA XBRL duly digitally signed. Director or whole time Company Secretary has to digitally sign the forms and further the XBRL documents are to be certified by practicing Chartered accountant, Cost Accountant or Company Secretary. Due dates for filing is 15th November, 2012 or within 30 days from due date of filing, whichever is later.TAXONOMY 2012
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C h a n g e s in X B R L Ta xo n o m y X B R L
Changes due to revisions in Schedule VI Changes in Architecture of taxonomy Concept of Dimensions Relationships-in Schemas and inter-linkages
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C h a n g e s in X B R L Ta xo n o m y
The taxonomy this year is based on the Revised Schedule VI taxonomy The main technical change is the move to a Dimension based taxonomy architecture from the earlier Tuples based taxonomy structure. Elements represented in a single dimensional format earlier have been transformed into a multi-dimensional structure This change introduces considerable flexibility in reporting, but also increases the tagging complexity. For e.g. a “long term secured rupee loan from a bank” has to be mapped to four taxonomy elements this year compared to one taxonomy element last year. This year’s taxonomy has 81 tables, 62 dimensions and 2,997 elements. Last year taxonomy had 3,165 elements. Elements have not decreased much, even with 81 tables and 62 dimensions indicating increase in complexity of mapping and more number of possible elements to be mapped due to combination of elements and dimensionsThis i
C h a n g e s in X B R L Ta xo n o m y
Summary of Changes ParametersOld TaxonomyNew Taxonomy Elements31652997 Tuples240 Extended Links5745 Dimension062 Tables081This i
