Part-2 of XBRL FAQs for company

As the part-1 of XBRL FAQs describe in our previous blog in the category of company registration in India on legalsalaah. Now the part-2  of XBRL FAQs for company is live here.

Click here to read about XBRL FAQs part-1 for company.

How does XBRL work?

XBRL is the way to makes the data easy and readable with the help of two documents -

Classification and example documents.

Taxonomy defines elements and their relationships based on regulatory requirements. Companies are required to map their reports, and generate a valid XBRL example document, using taxonomies determined by regulators. The process of mapping means matching the concepts reported by the company according to the corresponding element. In the middle to assigning the XBRL tags from taxonomy, information such as unit of measurement, duration of data, scale of reporting, etc., needs to be included in the example document.

How do companies make a statement in XBRL?

There are several ways to create a financial statement in XBRL:

1.  XBRL-aware accounting software products are becoming available that will support the export of data in XBRL form. The tools like XBRL helps/allow the users to map charts of accounts and other structures to XBRL tags.
2. Descriptions can be mapped to XBRL using XBRL software tools designed for this purpose. A data of Accounting based can be extracted in XBRL format. It is not compulsory /necessary for an accounting software vendor to use XBRL; Third-party products can achieve transformation of data for XBRL.
3. Applications can convert data to XBRL in special formats. The path an individual's company can take will depend on its requirements and the accounting software and systems currently used, among other factors.

Also Read-  Responsibility of Accountant for LLP accounting

Is India a member of XBRL International?

Now the India is an established law of XBRL International. A separate company has been formed under Section 25 to manage the operations of XBRL India. The main objectives of XBRL India are

• To create awareness about XBRL in India
• To develop and maintain Indian taxonomies
• Adopt and implement XBRL, to help companies

According to XBRL assortment/taxonomy, which class of companies are required to file financial statements with the registrar?

The following classes of companies will file their financial statements and other documents as per Annexure-1 in the E-Form AOC-4 XBRL with the Registrar under Section 137 of the Act: -

• Listed companies with stock exchanges in India and their Indian subsidiaries;
• companies with a capital of five crore rupees or more;
• companies with a turnover of hundred crores or more;
• All companies whose financial statements are required to be prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015,

provided that the companies preparing their financial statements under the Companies (Accounting Standards) Rules, 2007, using the classification The statement will be recorded using Annexure-II and the Companies (Indian Accounting Standards) Rules, 2015, the details provided in companies preparing their financial statements using the classification given in Annexure-IIA.

And also the software helps to file the LLP Annual compliances of the company.