ENTERSLICE

Financial information is crucial for every business. The criticalfinancial decisions that the management and the board has to take depends on the accurate understanding all the financial information that is accessible to them. This information is plenty and contains certain complexities. XBRL Filing is mandatory for companies that fulfill the minimum requirements. XBRL is the full form ofeXtensible Business Reporting Language. XBRL is a regulated computer language that businesses use to send information essential financial information to the individuals to need it. The Extensible business reporting language is a standard based on XML(eXtensible Markup Language) that is used for various purposes that is related to finances. It is majorly used for the preparation, exchange and publishing of financial information among different computer software, computer platforms and accounting standards. It is crucial to understand the different value schemes of XBRL in various forms in order to gain a clear strategy on XBRL. The purpose of XBRL is to exchange business information in a proper way. XBRL Instance Document The financial statements that are formatted with tags are known as XBRL Instance Document. The tags are based on accounting standards and regulatory reporting regimes Features of eXtensible Business Reporting Language Helps in Interlinking various financial information Preparation of returns and filing unlimited returns Improved accuracy Preparation, analysis and communication of business information Provides assistance in conducting audit trials which maximizes transparency Simplifies the work flow of the business Facilitates the enforcement of corporate accountability legislation Benefits of eXtensible Business Reporting Language (XBRL) Helps in automation Cost saving Makes the transfer of financial information faster, more reliable and Accuracy in the handling of data Improved analysis and assessment Better quality of information and Better decision-making Improves efficiency in managing business and financial information Content in XBRL software Every XBRL software consists of number of layers, which includes the following – Data definition Application logic Business rules Formatting information Every application has a different method to store data definition, meta data, data dictionary or repository. Most applications have a structured way to define and store business rules and calculations and all have application logic. Eligibility Requirements for XBRL Filing Companies that are registered with any stock exchange in India and their Indian branches. Companies that hold a capital of 5 Crores or above. Companies that have achieved a turnover of 100 Crores or more. How to file eXtensible Business Reporting Language (XBRL) The XBRL Filing has certain steps that must be followed in order to avail the tool for proper use by businesses. Understand the financial statements of the company Creation of a XBRL instance document Review and verify the instance document Download XBRL validation tool from the MCA portal Perform evaluation of the validated instance document with the help of the tool Documents required for the filing of eXtensible Business Reporting Language (XBRL) The following mentioned are some important documents that must be utilized at the time of filing of XBRL – Balance Sheet Profit and Loss Statement Cash Flow Statement Lists with regards to Balance Sheet and Profit and Loss Statement Notes to Accounts Statement pursuant to Section 212 of the Companies Act, 1956 which is related to subsidiaries. Audit and Annual Report Conclusion EXtensible Business Reporting Language or XBRL is an important tool that proves to be beneficial in providing assistance to larger corporations as well as businesses. XBRL Filing helps in delivering better quality decisions when it comes to taking financial decisions for the business.