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As most of us are aware, “XBRL” is the buzz word in the corporate world today, but with a veil to it, making it difficult to understand its practical implementation. Unless we step in, we do not know how cold the water is. This being the first phase of implementation, clouds of doubts are all pervading. Every concerned entity is trying to gear up with regards to what’s the mode to opt for, cost involved, man power requirement, training, time involved, statutory time limit, etc.
Purpose behind MCA mandate:
The intention of Ministry of Corporate affairs (MCA) is certainly appreciable. It's a move that's designed to increase the speed and accuracy with which companies make required financial disclosures as well as to increase the accessibility of that data for investors and analysts. Further, MCA is not the only Department bringing in XBRL to India. RBI has already started implementing and SEBI is also in the process.
MCA, in association with professional bodies like ICSI, ICAI and software providers, is making all the efforts in bringing awareness of XBRL. Several Vendors are available in market and we keep receiving mails from the software vendors every now and then. But, then, there is a huge variation in the features and price from vendor to vendor.
Moreover, though MCA has revised the C&I taxonomy, it has to revert with the
- final version of Validation Tool and
- Relevant e-forms.
All the current software is subject to amendments with respect to amendments in Taxonomy.
Considering above, it’s not an easy task to determine –
- Which is the appropriate software?
- Required features in a software
- Whether to outsource it or do in house?
- Cost involved
- Manpower Requirement
MCA vide its Circular No.57/2011 dated 28.07.2011 has permitted the Companies to file their financial statements without any additional fees upto 30.11.2011 or within 60 days of their due date, whichever is later.
|Date of AGM||Actual Due Date||60 days from due date||Extended Due Date|
|(1)||(2) = (1) + 30||(3) = (2) + 60||(4) = (3) or 30.11.2011 whichever is later|
For example if AGM is on 30.06.2011, we can file financial statements upto 30.11.2011; if AGM is on 30.09.2011, we can file financial statements upto 30.12.2011 without any additional fee.
Experiences of large companies would pave a way to certain extent. But, to resolve the XBRL puzzle, we should also keep updated ourselves with the latest happenings in the Department and in corporate world.
As per the Latest Update the following are the tentative dates:
1. Based on suggestions from users the Ministry of Corporate Affairs has decided to launch the updated taxonomy (along with list of changes) and the updated version of the validation tool by 24th of August 2011. This Validation Tool would then be sent to XBRL vendors for testing on their software and the final Validation Tool would be hosted on MCA portal by 30.08.2011 after incorporating suggestions, comments, etc from these XBRL vendors.
2. Filing of XBRL documents on MCA would be enabled by 07.09.2011