FAQ

1.) What is XBRL?

XBRL (eXtensible Business Reporting Language) is a language for the electronic communication of business and financial data. It provides major benefits in the preparation, analysis and communication of business information. It offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using financial data. XBRL allows information modeling and the expression of semantic meaning commonly required in business reporting. XBRL is a standards-based way to communicate and exchange business information between business systems.

2.) Who developed XBRL? XBRL is developed by an international non-profit consortium of major companies, organizations and government agencies. These include the world's leading accounting, technology, government and financial services bodies. Currently in India, XBRL India deals with it. 3.) What are the benefits of XBRL?

XBRL can be used by all types of organizations in order to save costs and improve efficiency in handling business and financial information. As XBRL is extensible and flexible, it can be adapted to a wide variety of different requirements. A company can benefit investors and raise its profile and can also meet the requirements of regulators, lenders and others consumers of financial information, who are increasingly demanding reporting in XBRL.

With the help of XBRL, data from different company divisions with different accounting systems can be assembled quickly, cheaply and efficiently. All participants in the financial information supply chain can benefit, whether they are preparers, transmitters or users of business data.

4.) What is the process to be followed under XBRL Filing? (a) Creation of XBRL instance document:
(b) Download XBRL validation tool from MCA portal and validate the instance document
(c) Perform pre-scrutiny of the validated instance document through the tool
(d) Attach instance document to the Form 23AC and Form 23ACA
(e) Submitting the Form 23ACA and Form 23ACA on the MCA portal
5.) How can the Company get their documents converted?

As per the mandate issued by the Ministry of Corporate Affairs, a company can appoint a third party

6.) Does XBRL cause a change in accounting standards?

XBRL benefits comparability by helping to identify data which is genuinely alike and distinguishing information which is not comparable. Computers can process this information and populate both pre defined and customized reports

7.) What is Taxonomy?

> Taxonomy may be referred as an electronic dictionary of the reporting concepts. It consists of definitions of thousands of business reporting concepts (including text) and their relationships. The taxonomy provides categorization, grouping and details for each concept, including the labels, definitions, accounting balance (i.e., debit or credit), presentation and summation information. Taxonomies are based on the regulatory requirements and standards which are to be followed by the companies. Accordingly, depending on the requirements of every country, there will be country-specific c taxonomies. Public taxonomies such as the MCA's Final Taxonomy and Business rules for XBRL reporting cannot always meet the precise needs of every individual financial report. For this reason, XBRL is designed to be extensible, allowing preparers to create an extension taxonomy (customized) that adds to the public taxonomy.

8.) What is schema?

Schema is a file with ".xsd" extension and contains the set of all the concepts and their basic properties, defined as per XBRL specification. The basic properties typically include the nature of data that would represent the concept (monetary, shares, text etc.), time of measurement (as on a day or over a period), accounting balance (debit or credit) and so on. These properties are defined so as to make the accounting concepts system readable. The schema also contains attributes describing the taxonomy (namespace and prefix)

9.) Tagging

It is a symbolic term for assigning coded identifiers to information. The most fundamental steps in developing an XBRL report are tagging data and applying a style sheet to the tagged data to convert XBRL files into a document that looks similar to the paper reports users of financial statements have been accustomed to. The tagging process is governed by the XBRL Specification (taxonomy), a detailed description of how to go about complying with the XBRL language. Not all information in business reports needs to be tagged. the user's application would be able to interact directly with the reported data. The tags (ticket, label, mark, card) are read by the computer, by programmers, and by other parties who need or want to see the tags. Users typically get what they need from readable printouts and the interfaces created by their software applications.

10.) Instance Documents:

XML file that contains business reporting information and represents a collection of financial facts and report-specific information using tags from one or more XBRL taxonomies.

An XBRL instance document is a business report in an e-format created according to the relevant taxonomy i.e. 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.