- Writer: Chandan Goyal
- Published: November 10, 2011
- Word Count: 458
The Ministry of Company Affairs (MCA) recognizes the importance of XBRL (eXtensible Business Reporting Language) for business reporting and advises leading firms to adopt it for filings. XBRL aids in the digital communication of financial information, gaining traction globally, including in India.
The significance of XBRL is highlighted by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), which require the top 100 listed companies to file quarterly results in XBRL format. The Reserve Bank of India has also begun using XBRL for financial reporting.
XBRL filing does not require companies to buy specific software; they can use XBRL consultants to streamline the process. XBRL International, supported by around 450 organizations, has advocated for its use, with adoption growing in the USA, UK, and Southeast Asia.
MCA filings are now easier, as the deadline for large-cap companies has been extended to November 30 in India. Any qualified professional can now attest documents for submission, not just statutory auditors.
XBRL can effectively handle both numeric and non-numeric data, allowing flexible financial reporting. In India, about 30,000 of the 1.2 million companies are expected to implement XBRL, which influences a large share of global market capitalization.
In conclusion, XBRL reporting is crucial for modern business communication, and its adoption will likely increase as more companies recognize its benefits.
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