Applicability of XBRL, requirements and benefits
MCA made it compulsory for certain class of companies to file than Balancesheet and Profit and Loss account in XBRL format.
Before we go to which companies are required to file documents in XBRL format, lets understand what XBRL stand for in FAQ style.
What is XBRL?
Xbrl is not a software but some codes which classifies the information in a common understandable statement. Everyone should be aware of HTML, html is used to write a webpage, and the look and feel of a website is decided by the HTML codes. Same way XBRL codes are used to classify the different kind of information in a consistent format.
XBRL is recommended by the XBRL development institutes, XBRL is internationaly recognised and the aim to streamline the financial data of entire world in an understable manner. The main use of XBRL is that the financial statement of any country can be understood by anyone, since the data will be classified as per prefixed codes.
Who arerequired to file documents in XBRL format?
As per MCA Circular 25/2011 Dated 12.05.2011 which is Corrigendum to Circular No.09/2011 dt 31.03.2011 following companies are required to file documents in XBRL format:
1. All companies Listed in India and its Subsidiaries
2. Paid up share capital of 5 Cr & Above or Turnover of100 Crore or Above
The above mode of filing is not applicable to : 1. Banking Companies 2. Insurance Companies 3. Power Companies 4. NBFC 5. Overseas Subsidiaries.
So the XBRL reporting is applicable to following class of companies only
a) listed company b) Company having paid up capital of 5 crore and c) Company having turnover of 100 crore