XBRL Data Conversion Services

WHAT IS XBRL?

Extensible Business Reporting Language (XBRL) accounts to communication language for business and accounting data which has modified the structure of business reporting across the world. It is a part of computer language based on XML (Extensible Markup Language) which builds up the standard for data exchange between the businesses and on internet. The application of identified tags on the data items for efficient process of the computer have untangled the complications involved with the procedure.

BENEFITS OF XBRL REPORTING

 Merits of XBRL Reporting are as follows:

• Interactive data is suitable for investors and other users for taking more productive decisions. In spite of wading through incomprehensible financial disclosure, investors can be accessible to meaningful information in a form which is more suitable for them.
• XBRL reporting will lead to error free accounts before being mapped under the respective taxonomy.
• Tagging of the financial data with the assistance of the application software may lead to detection of certain errors by the auditors. In this case, the XBRL will help cut down internal and external audit costs.
• The taxation system strictly adheres to accuracy and traceability in compliance with various rules and regulations. The values are used to calculate and report taxes and for that the compliance system is required to be effective for tracing accurate values. This procedure is necessary for atomic information. The straightforward and proper documentation and coding of the rules and formulas for assessing taxes helps in predicting the tax liability in case of any business transaction.
• Real time analysis helps the internal management in assembling reports for gamut of internal management decisions.
• XBRL technology is used as standard for analysing and reporting financial information, accounting framework and Software Agnostic.
• Although XBRL can summarize the general ledger transaction but it cannot be treated as standardized chart of accounts. Standardized charts are a way of get the reporting of the prescribes information, a transactional activity.
• In the arena of business reporting and analysis, the XBRL works unparallel in all stages of automated business reporting, more reliable, more accurate handling of data which ultimately helps one fetch the useful information for resuming the decision-making process.
• XBRL have revolutionized the time taking assembling and re- entry data processes by shifting the gear from manual to automated process. The software validates and manipulates XBRL information for being able concentrate purely on analysis.

Steps involved in Implementing the XBRL process

• Stating requirements for future reporting platform
• Analysing the requirements after the completion of XBRL process.
• List the driving processes of XBRL implementation
• Technical issues
• Modifications in legal regulations
• International Adoption

 For the communication, analysis and preparation of business information, XBRL proves a major benefit. It assures greater efficiency, accuracy, low costs and reliability for the financial data users.

Steps Involved in Accounts Filling Process in XBRL:

• Mapping, Creation, Reviewing and Verification of XBRL document
• Download XBRL validation tool available on MCA Portal
• Validate the instance document through Validation tool’ s assistance
• Pre-scrutinize the validated instance tool
• Attach instant document along with Annual filling forms

The versatility in usability of the XBRL in financial analysis for the business and stakeholders has been confirmed and it has been declared as the useful tool for financial processes. In many companies, the XBRL as the reporting tool has been made compulsory while others are in the process. The accountants in India share huge potential for undertaking the challenges related to XBRL introduction.