What is XBRL Reporting and its Filing Applicability

XBRL full form is Extensible Business Reporting Language. XBRL filing offers several benefits such as analyzing, preparing, and communicating business information. In this blog post, we will shed a light on what is XBRL reporting and XBRL filing applicability.

What is XBRL Reporting?

XBRL is an acronym for Extensible business reporting language. It is a method which was developed in the industry for improving the manner of transmitting or communicating the financial data which makes it easier to compile and share the data altogether. 

XBRL reporting refers to the process of electronically communicating financial and business data with the help of XBRL. XBRL has emerged and outshined itself as the most widely accepted medium of sharing financial information. The data could be easily transmitted to stock exchanges, and other regulatory bodies. For certain companies in India, XBRL reporting is a mandatory requirement under the Companies Act 2013.

XBRL applicability as per Companies Act

The following companies to file their financial statements in XBRL to ensure XBRL filing applicability, according to the Companies Act 2013: 

• Companies listed on the Indian stock exchange and their Indian subsidiaries. 

• Companies with a minimum paid-up capital of five crore rupees.

• Companies with a minimum turnover of one hundred crore rupees. 

• Companies required to prepare their financial statements according to Companies Indian Accounting Standards Rules, 2015.

List of XBRL Validation Tool 

An XBRL validation tool is a software which ensures whether the XBRL documents meet the requirements of business rules and taxonomy before they are filed with the Ministry of Corporate Affairs. Here is a list of XBRL validation tools:

• MCA XBRL Validation Tool

• Gen XBRL Software

• AMANA XBRL Portal 

• Webtel Electrosoft XBRL Software

• CompuTax XBRL Software

• Taxmann XBRL Software

• Relyon’s Saral XBRL Software

• Sensys’ InstantXBRL Software

• TaxPro XBRL Software

• Ez-XBRL Software

• Microvistatech C2X XBRL Software

Benefits of XBRL Reporting

XBRL reporting offers the following benefits:

• XBRL reporting reduces the dependency on manual data entry and saves time of companies.

• Corporate financial professionals prefer sharing of financial information in XBRL format as it eliminates noise, gives accurate understanding of performance in capital markets and facilitates discovery of shares.

• They receive accurate data which does not require any further validation.

• Retail investors receive benefits from analysis done by XBRL which is available only for investors in mutual funds.

• They receive the benefit of immediate analysis without waiting for filing.

Conclusion

Extensible business reporting language serves as a great platform for business entities to exchange or share financial information smoothly, without any problems. Through XBRL reporting, companies in India ensure compliance with the Companies Act, 2013 and avoid penalties.

Related Post : How to File Financial Statements in XBRL Format?

Frequently Asked Questions about XBRL

Q1. What is XBRL applicability for Private Companies?

A. If a private company has a paid capital of Rs. 5 crore rupees or more or has a turnover of 100 or more, then XBRL filing is applicable for such a company.

Q2. What is the turnover limit for XBRL filing?

A. Rs. 100 crore is the turnover limit for XBRL filing.

Q3. Is XBRL mandatory for all companies?

A. No, it is not mandatory for all the companies. Only the following companies require XBRL filing: (i) Companies listed on the Indian stock exchange and their Indian subsidiaries (ii) Companies with a minimum paid-up capital of five crore rupees. (iv) Companies with a minimum turnover of one hundred crore rupees. (v) Companies required to prepare their financial statements as per Companies Indian Accounting Standards Rules, 2015.

Q4. Is there an XBRL late filing penalty?

A. Yes. The late filing penalty for XBRL after the due date is Rs. 100 per day. If the filing gets delayed by more than 90 days and up to 180 days, the penalty is 10 times the normal penalty.

Post updated on : 15-10-2024

Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.