Once a company has filed its financial statements in XBRL (eXtensible Business Reporting Language) format, it is generally required to continue this practice for subsequent periods if it falls under the prescribed criteria. This requirement stems from the need for consistency and comparability in financial reporting. Specifically, companies categorized under the classes mandated to file in XBRL must adhere to these requirements in future filings as long as they continue to meet the specified criteria. This typically includes:
- Listed Companies: All companies listed on stock exchanges.
- Large Private Companies: Companies with a paid-up capital of ₹5 crore or more.
- High Turnover Companies: Companies with an annual turnover of ₹100 crore or more.
- Holding and Subsidiary Companies: These companies are also included if they fall under the above classifications.
XBRL Filing Provisions
The filing of financial statements in XBRL format is governed by the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2015. Key provisions include:
Applicability: As mentioned, XBRL filing is mandatory for the above-mentioned classes of companies.
Filing Timeline: Financial statements must be filed within the timelines prescribed under the Companies Act, typically within 30 days from the date of the Annual General Meeting (AGM).
XBRL Compliance: Financial statements must adhere to applicable accounting standards and should be converted into XBRL format using XBRL-compatible software.
Validation: XBRL documents must pass a validation process to ensure compliance with the specified taxonomy and rules set forth by the Ministry of Corporate Affairs (MCA).
Significant Check Points for XBRL Filing
When preparing and submitting XBRL financial statements, companies should consider the following critical checkpoints:
Use of Taxonomy: Ensure the correct taxonomy provided by the MCA is used for the specific financial year. Taxonomy versions can change, making it crucial to use the latest version available.
Mandatory Tags: Verify that all mandatory tags are included in the XBRL filing. This includes key financial statements like the balance sheet, profit and loss statement, cash flow statement, and relevant disclosures.
Validation Errors: Conduct a thorough validation of the XBRL document prior to submission. Rectifying any validation errors is essential to avoid rejections.
Accuracy of Data: Ensure the accuracy of the financial data filed in XBRL format, as discrepancies could lead to compliance issues and potential penalties.
Attachments: Confirm that all necessary documents and attachments, such as the auditor’s report, are included as per the regulatory requirements.
Conclusion Continuing to file in XBRL format in subsequent years is essential for companies that meet the outlined thresholds. Adherence to specified provisions and careful attention to the highlighted checkpoints will facilitate compliance and enhance the transparency of financial reporting. Companies can refer to the official resources from the Ministry of Corporate Affairs or consult professional advisors for further details and specific guidelines.
