The MCA requirement of filing annual reports in XBRL format applies to:
(a) All public companies listed in a stock exchange in India and their Indian subsidiaries
(b) All private companies with a turnover of Rs 100 crores or more or paid up capital of Rs 5 crores or more (other than banking companies, insurance companies, power companies and NBFCs)
The following components of Annual reports need to be filed in XBRL Format: (a) Balance Sheet
(b) Profit and Loss Statement
(c) Cash Flow Statement
(d) Schedules related to Balance Sheet and Profit and Loss Statement
(e) Notes to Accounts
(f) Statement pursuant to Section 212 of the Companies Act, 1956 relating to subsidiaries
Please refer to MCA website for full details
XBRL documents filed with MCA (in their MCA21 portal) should be signed by:
(a) Signatories under Section 215 of Companies Act 1956 and
(b) the statutory Auditor
Financial statements need to be filed in XBRL format in MCA21 Portal of MCA.
The steps involved are:
(a) Mapping: Mapping refers to the identification, for every piece of financial information in the report, of the most appropriate element in MCA’s taxonomy of accounting labels (in other words associating every data item with the most appropriate label in a dictionary of accounting labels). This would ensure that items disclosed carry a “standardized description” consistently understood by everyone (ignoring the way in which it is actually described in the report) based on sound accounting judgment that includes an understanding of the item disclosed and the notes relating to such an item. Mapping requires sound understanding of the data disclosed and a sound judgment on the most appropriate description of this item in a dictionary of standardized accounting terms.
(b) Tagging: Tagging refers to the creation of an XBRL instance document where each piece of financial information is “associated” with the most appropriate taxonomy element as identified during Mapping. An XBRL instance document is an XML file containing financial facts associated with tags from a standardized taxonomy of accounting terms. If any financial fact cannot be associated with any element in the standardized taxonomy of accounting terms, it is possible to create extensions to the taxonomy. Separate instance documents need to be created for the following:
(i) Stand Alone Balance sheet of the company
(ii) Stand Alone Profit and Loss Account of the company
(iii) Consolidated Balance sheet of the company (if applicable)
(iv) Consolidated Profit and Loss Account of the company (if applicable)
The instance document should contain the financial information for both the current as well as the previous financial year.
(c) Review, verify and validate the XBRL instance document: The XBRL instance document should be reviewed and verified by the Company and its auditors for appropriateness of disclosure. The document should be validated with MCA’s validation tool to ensure the output would eventually be acceptable to MCA (for structure/grammar of the XBRL document). Validation is a pre-requisite before filing and includes validation that the instance document is as per the latest and correct version of taxonomy prescribed by MCA; that all mandatory elements have been entered etc
(d) Scrutiny through tool: The next step is to scrutinize the document using the same tool. This would include server side validations and verification of the document through in built viewer.
(e) Prepare Form 23AC-XBRL (and attach Balance Sheet) and 23ACA-XBRL (and attach Profit and Loss account). Separate instance documents need to be attached for the Standalone financial statements and consolidated financial statements (if applicable).
(f) Submit Form 23AC-XBRL and Form 23ACA-XBRL at the MCA portal.
The exact dates are yet to be announced by MCA.
The exact dates are yet to be announced by MCA.
An accounting taxonomy is a dictionary of standardized accounting terms to present financial information in a precise and universally consistently understood manner. Taxonomies capture the concepts and the relationships that exist amongst financial data disclosed. A typical taxonomy includes schema (defining elements), presentation structure, calculation structure and labels.
XBRL documents for MCA should be based upon XBRL Taxonomy developed by MCA for the existing Schedule VI, as per the existing (non converged) Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006.
Taxonomies for Indian companies are developed based on the requirements of
Taxonomies for Manufacturing and service sector (referred as Commercial and Industrial, or C&I) are available at http://www.xbrl.org/in/
Please refer to the following link for the taxonomy details hosted on the MCA website http://www.mca.gov.in/XBRL/index.html
XBRL is a collection of standardized, machine-readable “tags” for line items in financial statements, including footnotes and schedules. Using XBRL, each line in a financial statement is assigned a standardized data tag. XBRL is a standards-based way to communicate business and financial information. These communications are defined in the taxonomies. Taxonomies capture the definition of individual reporting concepts as well as the relationships between concepts and other semantic meaning.
Information described above can be captured at the following two levels: Block Text tagging – Capturing group of information as one single fact, using one single tag from the taxonomy; and Detailed tagging – Capturing the granular fact (numeric or textual)
As described in the MCA website, The Balance Sheet, Schedules related to Balance Sheet, Profit and Loss Statement, Schedules related to Profit and Loss Statement and Cash flow Statement are to be prepared with “Detailed Tagging”.
The Notes to accounts, all notes (every individual note), complete Auditors report including annexure, complete Directors report are to be prepared with “Block Text tagging”