XBRL Filing

XBRL, which stands for eXtensible Business Reporting Language, is a standardized language for electronically communicating financial and business data, facilitating global business reporting. It offers significant benefits for analyzing, preparing, and sharing business information.

The Ministry of Corporate Affairs (MCA) implemented XBRL filing of financial statements with the Registrar of Companies (ROC) via the MCA portal. According to the Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2011, certain classes of companies are required to file their profit and loss accounts and balance sheets using the XBRL taxonomy.

Applicability of XBRL Filing	Exempted Companies
Every Listed Public Companies	Non-banking financial companies
Every company with a turnover of Rs. 100 crore or more	Housing finance companies
Every company with a paid-up capital of Rs. 5 crore or more	Companies involved in the insurance business and banking sector
Every company that must prepare its financial statements according to the Companies (Indian Accounting Standards) Rules, 2015

When performing XBRL filing, it's essential to take several precautions to ensure accuracy and compliance:

1.  Understanding XBRL Standards:  Familiarize yourself with XBRL taxonomy and standards applicable to your jurisdiction or industry. Understand the specific requirements and guidelines for filing financial data in XBRL format.

2.  Data Accuracy:  Ensure the accuracy and completeness of the financial data being converted into XBRL format. Validate the data to minimize errors and discrepancies.

3.  Mapping to Taxonomy:  Carefully map each financial item to the corresponding element in the XBRL taxonomy. Use the appropriate tags and concepts to accurately represent the data.

4.  Consistency Checks:  Perform consistency checks to ensure that the financial statements in XBRL format align with the original documents. Verify that all calculations, totals, and balances are correct.

5.  Quality Assurance:  Implement quality assurance measures to review and validate the XBRL files before submission. Conduct thorough reviews to identify and correct any errors or inconsistencies.

What is an XBRL Taxonomy?

XBRL taxonomies serve as dictionaries for financial and business reporting. They offer digital definitions for various business concepts, enabling digital reporting. In digital reports, each reported fact is ‘tagged’ with a unique identifier, allowing computer software to accurately recognize and process the information.

How Dugain Advisors LLP assist in XBRL ?

Dugain Advisors LLP offers a wide range of advisory services to clients across various industry sectors. Our team comprises professionals experienced in accounting and financial reporting principles and processes, including XBRL. We assist Indian Companies by converting their financials into XBRL taxonomy and work closely with management to ensure correct compliances.