Xbrl india[1]

XBRL –New Opportunities for the

Accountancy Profession

CA K.Raghu

Director XBRL India

Central Council Member

What is XBRL XBRL stands for eXtensible business reporting

language. XBRL is a language for electronic communication of

business and financial data. XBRL is set to revolutionise business reporting

around the world. XBRL provides major benefits in preparation,

analysis and communication of business information.

XBRL offers cost savings, greater efficiency and improved accuracy and reliability to all users of financial data

XBRL – The new language in business reporting

XBRL enables automated processing of business information by computer software.

Avoids manual entry of financial data Computers can treat XBRL data intelligently and

recognise the information in a XBRL document, select it, store it, exchange it with other computers and present it in many ways to a user.

XBRL increases the speed of handling of financial data and reduces the chances of errors.

Users of XBRL data Regulators like MCA, RBI,SEBI, IRDA, can automatically review and

analyse pre-validated XBRL filings.

Banks and Financial Institutions can automatically review and analyse pre-validated customer financial statements for monitoring loans and also assist them in credit risk assesment.

Analysts can automatically import pre-validated company financial information in XBRL format for investment analysis.

Investors can access XBRL corporate reporting data and analyse the same at a lower cost.

Management can benchmark their performance against competitors and peers anywhere in the world.

XBRL – Very flexible

XBRL can handle data in different languages XBRL can be flexibly be adapted to meet

different reqauirements and users. Users of financial data can compare and

analyse data much more rapidly in XBRL format

XBRL – Huge savings

Regulators, banks, financial institutions, companies spend a lot of money and time in re-keying, cleansing and analysing financial data as and when quarterly and annual results are published by various companies.

XBRL tools and applications will eliminate the tasks of duplication and promote transperancy and reliability of information

How to creat Financial Statements in XBRL ?

XBRL aware accounting software will support the export of data in XBRL form. These tools will allow users to map charts off accounts and other structures to XBRL tags.

Financial statements can be mapped into XBRL by using XBRL software tools.

Data from accounting databases can be extracted in XBRL format by using XBRL software.

Formation of a group on XBRL in India

In the year 2007 the Institute of Chartered Accountants of India (ICAI), the premier accounting body and the National Standard setter constituted a Group for promotion and development of XBRL in India.

Support of RegulatorsThe group had representatives of the major regulators in India viz. the

Securities and Exchange Board of India (SEBI)

Ministry of Corporate Affairs (MCA) Reserve Bank of India (RBI) Insurance Regulatory and

Development Authority (IRDA) National Stock Exchange (NSE) Bombay Stock Exchange (BSE)

XBRL India

In the year 2008, ICAI set up an Indian XBRL Jurisdiction in the year 2009 as an extended arm of XBRL International in India. The Jurisdiction was Provisional in nature for a period of 2 years.

TaxonomiesLike other standard setters, across the globe, ICAI developed taxonomies based on the Indian Accounting Standards and the Indian Company Law requirements.

TaxonomiesThe jurisdiction first developed a general purpose taxonomy called the Commercial and Industrial (C&I) Taxonomy which could be used by any Commercial and Industrial Enterprise. It is based on the IFRS 2006 architecture.

C&I Taxonomy

This taxonomy was developed through a due consultative process where the Industry experts reviewed the draft taxonomy, thereafter it was exposed in the public domain for comments. After finalisation on the basis of comments, the taxonomy was acknowledged by XBRL International.

C&I Taxonomy Cont….

This taxonomy has been developed to enable companies prepare their financial statements, viz., Profit and Loss Statement, Balance Sheet and Cash Flow Statement in XBRL format, based on the requirements of the accounting standards, Indian company law and the requirements under Clause 41 of the Listing Agreement.

Banking TaxonomyMean while a need was felt to develop Industry-specific taxonomy for Banking Sector as their requirement could not be met with the C & I Taxonomy as their format for presentation of financial statement were very different. Therefore Taxonomy for banking was developed.

Banking Taxonomy

Banking taxonomy is an extension to the core Indian XBRL C&I taxonomy. The banking specific elements have been added to the core schema. The schema file contains all the element declarations along with there XBRL properties (including the elements of C&I taxonomy).

Taxonomies in futureIt is proposed to develop other industry-specific taxonomies viz. the Insurance and Power sector. Taxonomy for NBFCs is also in the process of development.

XBRL India – an Established Jurisdiction

In the year 2010, XBRL India was awarded the status of an “Established jurisdiction” capable of having a representative of India at the International Steering Committee (ISC), the governing body of XBRL International.

XBRL India – A Company

‘XBRL India’ is now a company registered U/s 25 of Companies Act, 1956. The company is facilitated by ICAI.

It has been incorporated for managing the affairs of Indian Jurisdiction of XBRL International.

Website of XBRL India

A separate website dedicated to the XBRL India Jurisdiction to keep members and other users aware about the Indian XBRL Jurisdiction has been set up by the ICAI. Its URL is www.xbrl.org/in.

Way ForwardICAI being the neutral facilitator of XBRL India Jurisdiction, shall assist the regulators and users of the financial statements by:

Developments of XBRL taxonomies. Ensure compliance of taxonomies with

the requirement of Companies Act 1956 and other relevant legislations (LLP).

Way Forward Cont…. Update the existing taxonomies as per

the requirements of the IFRSs on implementation of Indian AS in India.

Maintenance and updation of the XBRL Taxonomies from time to time as per the requirements and any revisions in the Accounting Standards.

XBRL India-Membership

The membership of XBRL India is open to the following categories:(a) Regulators(b) Organizations(c) AcademiciansCertain parameters have been laid down for the interested organizations and academicians to become member of XBRL India.

XBRL India – MCA Mandate

The Ministry of Corporate Affairs (MCA) has issued a circular dated 31st March, 2011 mandating certain class of companies for filing their financial statements in XBRL formats for the year 2010-11.

XBRL India – MCA Mandate Cont…..

Considering the requirement for training professionals in view of the mandate issued by MCA, it has been decided to provide trainings in collaboration with CMII and CPE Committees of ICAI across the country. However, to start with the hands on training on XBRL filing, it shall be imparted at the metros and bigger cities viz. Bangalore, Ahmedabad, Pune etc. as of now, covering 17 cities in all in the initial phase, which shall be extended to other cities in the future

XBRL India is also developing basic Training material and schedule on the basic concepts and process involved in XBRL filings.

XBRL India – Road Ahead

It is proposed to design the XBRL Certification Programs in India for the promotion and education of XBRL in India.

Facilitating education in XBRL through a series of workshops, seminars and conferences.

XBRL, India – Road Ahead Cont…..

Roping in other regulators like CBDT/ IRDA for implementing XBRL in their reporting requirements.

Launching a certificate e-learning course on XBRL

XBRL – Opportunities for Chartered Accountants

Assist companies in preparing XBRL compliant Financial Statements.

Assist companies in their regulatory filings. Investment and Credit analysis

Thank you

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