New Kid On The Block Xbrl Set To Change The Way Financial Data Reporting Is Done

Ministry of Corporate Affairs (MCA) has certainly understood the significance of XBRL, an upcoming business reporting language and thus it has made strong recommendation to the top-draw companies to undertake XBRL reporting for MCA filing. In essence, this language is meant for electronic communication of financial data. Globally, it has given a new fillip to how business reporting is carried. India is feeling its patronization just as much.

Moves of RBI NSE and BSE attest its importance

Its rising impact can be perceived by the fact that NSE and BSE has already made it mandatory for the top 100 listed companies to provide their results for each quarter in XBRL language. In fact, the Reserve Bank of India has taken cue and has already incorporated XBRL financial reporting for three returns, namely GBP returns, capital adequacy data and Form A.

What the best XBRL firms can do for you

You do not need to possess particular software to perform XBRL filing. You only require running your data over the XBRL software. Any XBRL consultant or an XBRL company can perform the job for you in a streamlined manner. XBRL International, an accumulation of about 450 entities belonging to the niche of NGOs, has promoted it for the last few years. Already, USA, UK and South East Asia are singing praises of XBRL and with the language finding similar resonance from India, it is only a matter of time before it becomes a universal rage.

About MCA filing

Top XBRL consulting firms would ensure that your MCA filing is being taken care of in time and with complete meticulousness that the subject demands. For the uninitiated, the timeline provided for filing XBRL documents for the large-cap companies has been stretched to 30th November in India. Also, the clause of document attestation by a statutory auditor has been taken off. From now on, any CA or CWA or CS who is in practice can attest the documents and post it on the MCA website.

XBRL works both for numeric and non-numeric information

XBRL can be read in various languages and it can readily convert both numeric as well as non-numeric texts. This implies that the aspect of financial reporting takes new dimension under the umbrella of XBRL services. XBRL India taxonomy can seize textual information and thus allow even auditors or directors non-numeric report to be converted into this financial language.

To sum it up

Almost 30000 companies among the 1200000 companies in India are being taken care of under the first phase of XBRL conversion implementation. Just chew on this figure: Companies that together contribute towards 3/4th of global market capitalization are utilizing XBRL reporting. If ever a convincing proof of the success of a business reporting language is required, this is it.