Journey of XBRL
"Beginning of a New Era of Financial Reporting in INDIA"
"Need for more coarse and processable data paved the way for XBRL"
This is the Prime Scorching force behind the Inception of XBRL in INDIA earlier the MCA face itself in a jeopardize situation and had to do a humungous job of scrutinizing the data manually from the sets of the information from its various stakeholders which had to submit the data at the regular intervals with it and to trace the incorrect mapping of data. Due to this MCA has to pave out the way for XBRL Implementation in INDIA.
PHASE-I (Year 2011)
The mandate for XBRL reporting came in 2011 and companies falling under a certain criteria were required to file their Balance Sheet and Profit and Loss in XBRL format from the FY 2010-11 onwards. The Institute of Chartered Accountants of India (ICAI) assisted in building the taxonomy to meet the MCA requirements. The scope of tagging and level of tagging (i.e. detailed and text block) was specified. Extensive business rules were also defined and validation tool was provided by MCA to check the instance documents in conformity with XBRL and business rules.
The mandate covered around 25000 companies in Phase I. These companies were:
- All companies listed in India and their Indian subsidiaries
- All companies with a paid up capital of Rs. 5 crores and above, and
- All companies with a turnover of Rs. 100 crores and above.
PHASE-II (Year 2012)
The first year has its own sets of consternation. XBRL was a in its own a new concept and Stakeholders are started to getting familiar with the New Change. By the time they get acquainted with the Changes the Next Year observed a drastic Change where the pillars of XBRL are again shaken up a total re-modelling of the XBRL Structure has been made with the implantation of the Schedule VI. The Scope has been widened and it was mandatory to follow the Business Rules of XBRL. Tuples were replaced by dimensions for data modelling. At the same time the companies were required to file their cost audit report and compliance report in XBRL format.
PHASE-III & IV (Year 2013 & 2014)
These phases of the XBRL Filing has observed the Stability and a smooth process for the XBRL Filing can be seen. Stakeholders are adapted to the Changes occurred in the Previous Year and has shown the increase in number of reporting by the stakeholders in comparison to previous year ratios.
PHASE-V (Year 2015)
In the advent of the Companies Act, 2013 this year observes Changes in the Taxonomy so as to make it Compliant to the Act and to ensure its stakeholders a platform for the mapping of the data as per the Current Scenario in Law. Business Rules are revised and the ICAI as a strangling force helped the Ministry to build up the same. In Lien up to the Act and keeping this as the Base detailed Tagging of Directors Report, Directors and KMP Remuneration, MGT-9 etc. has become the forming part of the XBRL Reporting. More stringent Rules has been drafted so as to get the blocks of XBRL Reporting structured in alignment to the ACT. Various Circulars, Notifications has been issued from time to time to stakeholders for their ease and clarificatory purpose.
Dates has been extended for the Reporting in XBRL Format so as to serve the interest of the Stakeholders at large and to get them familiar with the New Changes in the Taxonomy and Business Rules.
The Scope of Tagging and Mapping has been extended, New Validations and Pre-Scruitnization measures has been deployed so as to ensure the Quality Tagging.
PHASE-VI (Year 2016)
As they say History repeats itself, the PHASE-V (Year 2015) has create the fog just like the PHASE-I(Year 2011) where stakeholders has to dealt with the NEW Changes and at the same time has to adapt and file in the same reporting format. The Changes are significant and Stakeholders are getting acquainted to this but to add on to this the Year 2016 has got more in its box.
With the CARO 2016 applicability and expanded role of CSR the XBRL Reporting has again underwent Changes and will be shortly deployed in the month of September. The Business Rules and Validation engine are undergoing changes so to work in conformity with the Changes.
In such a situation General Circular No.08/2016 has been issued by the Ministry of Corporate Affairs for the Extension in the Filing date upto October, 30, 2016 so as to work in the harmony of the interest of its stakeholders.