CONVERSION OF XBRL CONVERSION OF FINANCIAL STATEMENTS (XBRL FILING)
XBRL (eXtensible Business Reporting Language) is a language for the electronic communication of business and financial data. The Ministry of Corporate Affairs, Government of India, has required certain classes of companies to file their financial statements in XBRL form only from the year 2010 – 2011. XBRL makes the data readable with the help of two documents – the taxonomy and the instance document.
The Ministry of Corporate Affairs vide its General Circular No. 37/2011, dated June 07, 2011 has required the following class of companies (except Banking Companies, Insurance Companies, Power Companies and the Non-Banking Financial Companies) to file the financial statements in XBRL form only from the year 2010 – 2011;
- All companies listed in India and their Indian subsidiaries;
- All companies having a paid up capital of INR. 5 Crore and above; and
- All companies having a turnover of INR. 100 Crore and above.
- All companies which are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015.
These Financial Statements in the form of XBRL (XML) file needs to be filed alongwith the Form AOC-4 XBRL within 30 days from the date on which the Annual General Meeting of the Company was held.
LEGALRAJ will professionally assist you in XBRL reporting of the Financial Statements of your Company. The average time taken to complete XBRL reporting is about 7 to 10 working days, subject to submission of necessary information and documents required by us from the client.
Features of XBRL reporting of Financial Statements
1. Complex Data Management: It could be considered that organizations that have one standard chart of account which can do data management once for all reporting entities. However, if the company acquires a new entity it will take time before the standard chart of accounts is implemented. These complexity and variety problems are solved with the use of XBRL. XBRL allows the abstraction of complex data models from the data itself. XBRL requires a feeding of financial information only once and rest of the data management is automatically done by the software itself.
2. Smart auto tagging of financial data: XBRL is the standard way to communicate business and financial information. It gathers financial information and represents the smartly tabulated and tagged data in easily representable and analyzable manner so as to derive exact conclusions and to take informed and clever financial decisions in your business. Therefore, XBRL provide better information which leads to better management and better governance which creates better market.
3. Fastest Analytical Tool: To make analytics more meaningful, data visualization is the key. Data visualization refers to the graphical or pictorial representation of the data. It helps to understand the huge amount of data and get an insight from what could even be terabytes of data. Banks and financial institutions can efficiently analyze the financial position of the Companies with the help of XBRL and thereby can take the most informed decisions which will be beneficial to their financial interest.