XBRL stand for eXtensible Business Reporting Language. It is a global standard language for exchanging business information. In India only notified companies are required to do XBRL filing. In XBRL filing financial information is converted into xbrl form and then filed into MCA website. Later if you can convert XBRL file into pdf or any other form. In this article I have presented “Which company requires XBRL filing”.
All Indian Companies files their financials with MCA. These financials are filed in PDF forms, annually. But Only some companies are require to file financials in XBRL form.
As per Notification dated 9th September, 2015, Ministry of Corporate Affairs has notified “Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2015”. These rules are in suppression of earlier rules “Companies (Filing of documents and forms in Extensible Business Reporting Language) Rules, 2011” which was notified by GSR No. 748E dated 5.10.2011.
These new rules provides that following class of companies will have to file their Financial Statements under section 137 of the Companies Act, 2013 using the Extensible Business Reporting Language (XBRL) taxonomy for financial year commencing on or after 1st April, 2014:-
- all companies listed with any Stock Exchange(s) in India and their Indian subsidiaries; or
- all companies having paid up capital of Rupees five crore and above; or,
- all companies having turnover of Rupees one hundred crore and above; or,
- all companies which were hitherto covered under the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011:
Exemption from XBRL filing
Companies like Banking, Insurance, Power Sector and Non-Banking Financial Companies are exempted from XBRL filing.
Note : Companies that are engaged in generation or transmission or distribution of electric power as per their object clause are classified as power companies for XBRL filings. Such companies are exempted from XBRL filings of their Financial Statement for FY 2014-15 onwards irrespective of whether they prepare their accounts as per Schedule III of the Companies Act, 2013 or not. Companies producing electric power for their captive consumption are not exempted from XBRL filings.
All Banking companies (that are regulated by RBI) and all Insurance companies (that are regulated by IRDA) have been exempted from XBRL filing of their Financial Statements till further order. All NBFCs that are registered with RBI or exempt from registration with RBI but registered with other regulators like SEBI, IRDA, National Housing Bank, etc. are exempted from XBRL filings. Further, NBFCs and Power companies are exempted from XBRL filing irrespective of whether Schedule III is applicable to them or not.
Indian Subsidiary of a listed company
XBRL efiling is always applicable to subsidiary of a listed company irrespective of its turnover. So even if the paid up capital is below than Rs. 5 crore. XBRL efiling will be applicable.
Subsidiary Details
If the holding company is mandated to file in XBRL, details of all subsidiaries (including foreign subsidiaries) need to be given as per “Notes – Subsidiary information” in the XBRL instance document of the holding company.
Financials of the subsidiary are not required to be attached, their SRN details of e form filed by subsidiary needs to be mentioned.
For foreign subsidiary annual accounts needs to be attached.
Turnover Limit
Gross turnover (i.e. inclusive of duties and taxes) is to be considered for determining Rs. 100 crores turnover threshold for eligibility of a company for XBRL filings in FY 2014-15 onward.
Standalone Financials
Standalone financial statement of the holding company is to be filed mandatory in XBRL. It will also contain details on information of its subsidiaries as per “Notes – Subsidiary Information”. Consolidated financials, if applicable, may also be filed with MCA as the taxonomy has elements for consolidation as well.
Please comment for any query on which company requires XBRL filing?
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Your selection of topic is very good and also well written. Thanks for sharing. I feel like all your ideas are incredible! Great job!!!
Hi Harish,
Thanks for nicely written article. Do you have any idea is there any ERP applications which supports XBRL or should I use only external tools?
Thanks
Bachi
Hi,
If the parent company is a listed NBFC, and has an indian subsidiary which is not an NBFC, should the subsidiary file XBRL as parent company is exempt from XBRL provisions.