XBRL stands for eXtensible Business Reporting Language. It is an electronic communication form of communication for business and data. XBRL is in many countries and its use is increasing all over the world In future XBRL is set to become the standard way of recording, storing and transmitting business financial information. XBRL language can be used throughout the world, whatever the language of the country concerned, for a wide variety of business purposes.
XBRL, as it is an electronic process, so it enables producers and consumers of financial data to switch resources away from costly manual processes, typically involving time-consuming comparison, assembly and re-entry of data.
XBRL is a flexible language, which is intended to support all current aspects of reporting in different countries and industries. Its extensible nature means that it can be adjusted to meet particular business requirements, even at the individual organization level.
The first benefit of XBRL filing is that it helps in the preparation, analysis, and communication of business information.
XBRL filing also offers cost savings, greater efficiency and improved accuracy and reliability to all those involved in supplying or using financial data.
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What is the working process of XBRL?
XBRL depends on the two components
- Taxonomy: It contains the classification and description of the business and financial terms.
- Instance Document: The second important component of XBRL is the instance document that is made up of the actual facts and figures. Taxonomy and Instance document together make up the XBRL documents.
Documents required for the XBRL E-filing
- Balance Sheet of the business
- Statement regarding the profit and loss of the company
- Cash Flow Statement
- Schedules related to Balance Sheet and Profit and Loss Statement
- Notes to Accounts
- Statement pursuant to Section 212 of the Companies Act, 1956 relating to subsidiaries
- Audit and Annual Report