xbrl second phase of implementation. background of xbrl implementation mca has taken a lead in the...

XBRLSecond Phase of Implementation

Background of XBRL Implementation• MCA has taken a lead in the

Implementation of XBRL by mandating the XBRL filing of annual financial statements for a select class of companies in the year 2010-11. The mandate covered approx. 30,000 companies.

• Banking, Insurance, Power Companies and NBFCs were exempt from XBRL filing owing to non-availability of taxonomies specific to their reporting requirements.

Basic Terms used in MCA-XBRL• C&I Taxonomy- It refers to Commercial and

Industrial Taxonomy. It is a general purpose taxonomy based on the Indian GAAPs requirements and Schedule VI to the Companies Act, 1956.

• Business Rules- These are developed by the MCA as basic validation checks to ensure consistency in the XBRL documents.

• Instance Documents- These refers to the XBRL converted financial statements. As per the XBRL Mandate of MCA, two instance documents are required for filing in case of standalone set of financials viz. Balance Sheet and Statement of Profit & Loss.

• Validation Tool- This tool is developed by the MCA which requires every instance document should be passed though the validation checks built in the Validation Tool. Instance document, if fails to pass through validation tool, could not be filed with the MCA.

Second Phase-XBRL Implementation

However, banking companies, insurance companies, power companies and Non-Banking Financial Companies (NBFCs) are

exempted from XBRL filing.

Companies covered in second phase:

(i) all companies listed with any Stock Exchange(s) in Indiaand their Indian subsidiaries; or(ii) all companies having paid up capital of Rupeesfive crore and above; or(iii) all companies having turnover of Rupees onehundred crore and above; or(iv) all companies who were required to file theirfinancial statements for FY 2010-11, using XBRL mode.

C&I Taxonomy

C&I Taxonomy has been changed owingto the requirements of New Presentation Format of

Financial Statements viz. Revised Schedule VIto the Companies Act, 1956

Considering the fact that taxonomy needed to bedeveloped afresh, architecture of the C&I Taxonomy

was also upgraded to the latest IFRS TaxonomyArchitecture 2011. Earlier taxonomy was based on the

IFRS Taxonomy Architecture 2006.

Key differences between the C&I Taxonomy 2012 vis-à-vis earlier taxonomy

Basis of preparation has changed viz. Revised Schedule VI.

Based on the latest IFRS Taxonomy Architecture.

Addition of two linkbases viz. Definition and Reference Linkbases

Concept of dimensions have been used.Dimensions are used to capture the tabular

data in a much presentable format.

Requirements of Industry-specific Guidance Notes andSEBI Employee Stock Option Scheme and

Employee Stock Purchase SchemeGuidelines 1999 have been included

Basis of preparation has changed viz. Revised Schedule VI.

Based on the latest IFRS Taxonomy Architecture.

Addition of two linkbases viz. Definition and Reference Linkbases

Basis of preparation has changed viz. Revised Schedule VI.

Based on the latest IFRS Taxonomy Architecture.

Concept of dimensions have been used.Dimensions are used to capture the tabular

data in a much presentable format.

Addition of two linkbases viz. Definition and Reference Linkbases

Basis of preparation has changed viz. Revised Schedule VI.

Based on the latest IFRS Taxonomy Architecture.

Requirements of Industry-specific Guidance Notes andSEBI Employee Stock Option Scheme and

Employee Stock Purchase SchemeGuidelines 1999 have been included

Concept of dimensions have been used.Dimensions are used to capture the tabular

data in a much presentable format.

Addition of two linkbases viz. Definition and Reference Linkbases

Basis of preparation has changed viz. Revised Schedule VI.

Based on the latest IFRS Taxonomy Architecture.

Use of DimensionsTypes of Dimensions

1. Explicit Dimensions: In this type of dimensions, members are explicitly defined under an axis. For eg. In “Notes-Share Capital”, members are explicitly defined under the “Classes of share capital [Axis]”. Filer can use only the given number of members.

2. Typed Dimensions: In this type of dimensions, members are not defined under the axis. It has been left on the part of filers to create any number of members under the axis as per their specific requirement. For eg. In the case of signatories to the Board Report, no members have been defined under the “Directors signing board report [Axis]” thereby enabling the filer to create any number of members as per their requirement.

Key differences between the Implementation Approach

1. Taxonomy Architecture Guide has been releasedin order to explain the new architecture of the C&I Taxonomy

2. Business Rules have been increased in number

3. Detailed tagging of Auditors Report and certain itemsof Directors Report has been made mandatory

4. Cost Audit and Cost Compliance Report has also beenmandated to be filed in XBRL format.

5. More focus on quality of XBRL financial statements

Snapshot of C&I Taxonomy

Snapshot of Balance Sheet Instance Document

Snapshot of Balance Sheet Instance Document

Attributes of element “Long Term

Borrowings” in the instance document

Snapshot of P&L Instance Document

Snapshot of P&L Instance Document

Attributes of element “Employee Benefit Expenses” in the

instance document