Overview

XBRL (eXtensible Business Reporting Language) compliance refers to the adherence to standards and guidelines set for the use of XBRL in financial reporting. XBRL is a standardized, XML-based language designed to communicate and exchange business and financial data electronically.

XBRL is an open source and royalty free software application, which was developed with the great combination of accounts and technologies. It is used globally by global companies, accounting, technologies, government and financial services bodies.

 It allows for the tagging of individual data elements within financial statements, making it easier for computers to read, analyse, and compare financial information. It is already in the practice in number of countries and it is also rapidly growing in India. As we have various reasons, this web page is dedicated to XBRL compliance, explore its benefits, requirement and more.

Role of XBRL Compliances

1. Standardization: Ensuring financial data conforms to XBRL taxonomies (standard dictionaries of accounting terms) for accurate tagging and interpretation.

2. Accuracy: Precise and correct tagging of financial data elements to avoid errors and misinterpretations.

3. Consistency: Uniform application of XBRL tagging across different periods and among various reporting entities.

4. Timeliness: Providing financial reports in XBRL format within the required reporting periods.

5. Validation: Using software tools to validate the XBRL documents against the relevant taxonomies to ensure compliance and correctness.

Importance of XBRL Compliance

1. Improved Transparency: XBRL allows for the standardized presentation of financial information, making it easier for regulators, investors, and analysts to access and understand the data.

2. Enhanced Comparability: Standardized tagging facilitates comparisons between companies and across time periods, aiding in better analysis and decision-making.

3. Efficiency: Automating the process of financial data collection, reporting, and analysis reduces the time and effort required for these tasks, leading to cost savings.

4. Regulatory Requirements: Many regulatory bodies, such as the SEC in the United States, mandate the use of XBRL for financial reporting. Non-compliance can result in legal penalties and other consequences.

5. Data Accuracy and Reliability: XBRL helps in reducing errors associated with manual data entry and ensures the reliability of financial data.

6. Enhanced Analysis: Facilitates more sophisticated analysis of financial information by allowing for the integration of data from multiple sources.

7. Better Decision Making: Stakeholders, including investors and management, can make more informed decisions based on accurate, timely, and comparable financial data.

8. Global Reach: As XBRL is used internationally, it aids multinational companies in meeting the reporting requirements of different jurisdictions in a consistent manner.

Documents Required for AOC-4 XBRL

XBRL compliance ensures the standardization, accuracy, and efficiency of financial reporting, enhancing transparency and comparability while meeting regulatory requirements. This leads to better data quality, improved decision-making, and greater trust in financial information.

1. Financial Statements including Balance Sheet , profit & Loss Account, cash Flow Statement, schedules related to balance sheet and profit& loss account, notes to accounts 

2. Significant Accounting Policy 

3. Audit Reporting including CARO Report 

4. Director’s Report 

5. AOC-1, AOC-2 

6. Secretarial Audit Report 

7. Annual Report 

8. Corporate Governance Report

Who Can Use XBRL?

All types of organizations can opt to use XBRL in order to save costs and improve efficiency in operating business and financial information. As we understand XBRL is extensible and flexible, it can be adapted to a wide variety of different requirements. All participants in the financial information supply chain can avail of benefits, whether they are preparers, transmitters or users of business data.

Applicability of XBRL Filing for Companies

There are certain companies that are required to file balance sheet, profit and loss account and eform AOC-4 by using XBRL taxonomy with ROC subject to few exceptions: -

• All Public Limited Company that are registered with Indian Stock Exchanges and their Indian subsidiaries.

• Every company which has annual turnover more than Rs. 100 crores.

• Companies with paid up capital of more than Rs. 5 crores.

• Also the companies that require to prepare the financial reports  as per the companies (Indian Accounting Standards) Rule, 2015.

Why to Choose CRSPL Business Consultants?

• Detailed Guidance:- The experts of CRSPL will provide your every single detail and guidance so that you do not miss any step. We will keep you updated about eligibility criteria, document requirement and processing of application. 

• Preparation & Assistance:- CRSPL assists you in preparing all necessary documents for the successful application and guide you for further process. 

• Application Submission and Approval:- CRSPL handles the entire application submission process by ensuring all the details are accurate and in proper manner on behalf of our client.

• Expert Consultants:- For any query related to business or company, you can meet business consultants at CRSPL, they are readily available to assist you.