Firstly one needs to know why XBRL implementation is important in India.
Is it only because of statutory requirement or our approach shall be what was the need for such statutory requirement to change the whole of reporting system in India.
Corporate perception has to change in this regard and it can only be done once the top management realizes the importance that what is achieved by following XBRL Taxonomy.
Main objective of XBRL is Transparency. Investor has put in its money in company and shall be aware of it’s IN and OUT. The XBRL is a way of electronic communication of business and financial data and is of immense utility to the capital markets and the investing community.
XBRL involves huge initial conversion costs for companies but the long-term benefits for investors and the capital markets would be significant.
MCA has come up with circular which is superseding the other circulars issued in this regard
According to which, in phase 1, following class of companies have to file financial statements from the financial year 2010-2011 in XBRL mode:-
1. all companies listed in india and their indian subsidiaries.
2. all companies having paid-up capital of Rs. 5 Cr. and above.
3. all companies having turnover of Rs. 100 Cr. and above.
Do read the circular....
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