What is XBRL (eXtensible Business Reporting Language)?
XBRL (eXtensible Business Reporting Language) is now a globally preferred language for transmitting financial and other data related with businesses to diverse users of these (such as investors, regulators, analysts, etc.) via the Internet. This data-rich dialect of XML, offers many exclusive benefits both to the suppliers and users of the business data.
The benefits offered by xbrl are described separately in the section just below. This section now offers some significant information about the development, facts, and uses of this world-class electronic format for handling and analyzing various business data and reports.
XBRL has been developed ingeniously by prestigious XBRL International Inc. (XII), which is a non-profit consortium of global prominence. The xbrl tags have been devised in a universally acceptable way to ensure its suitability and convenience to computers located worldwide which use the xbrl software, for manipulation and exchange of business-related data. Computers embellished with XBRL Software can readily and automatically identify, collect, process, store, exchange, and analyze all those numerical and textual data related with businesses for various objectives. Prior to the advent of this xbrl language, such data were used to be handled and transmitted only through the PDF Format, which consumed much more efforts and time for manipulation, analysis, and exchange. Also, this xbrl format can be used by almost all types of companies, firms, and organizations for a wide-range of business/service purposes. Again, as XBRL is extensible and flexible, the users are enabled to create their own xbrl taxonomies to suit their respective requirements and environments. Thus, XBRL is really an immensely elegant and excellent electronic format for creation, analysis, and transmission of various financial and other data related with businesses and services of various economic sectors.
Benefits Offered by XBRL
The following are the outstanding and most impressive benefits offered by this highly elegant and flexible business reporting language of global popularity and admiration: ---
- XBRL can serve as a common electronic format for worldwide transmission of business data and reports.
- XBRL gives great and elusive facilities to the business regulators, investors and shareholders, business analysts, and other people and agencies associated with businesses, for quick analysis and comparison of the business data related with numerous companies.
- XBRL supports easy and efficient reproduction of different business-related reports and comprehensive analysis of the same, for the purposes of business management, internal audits, and external research and analysis.
- XBRL facilitates savings in costs, greater efficiency of data handling and manipulation, improved accuracy and reliability, and impeccable analysis and management of business data.
- XBRL is flexible and extensible to cover specific XBRL Tags to suit different environments.
- XBRL is suitable to almost all entities for meeting diverse requirements.
- XBRL enables easy and brisk production of the stored data, in different types of reports, or with varying subsets of the same.
XBRL Filing in India
As collection, verification, analysis, and updating of business data are rather convenient and efficient with help of XBRL-enabled software, governmental agencies, business regulators, and industry analysts and expert now insist on xbrl filings with them. Hence, the xbrl filing requirements are ever-growing both in the government and private sectors in India and other countries worldwide.
In India, reporting in xbrl format has been imperatively demanded by central bodies like MCA, SEBI, RBI, and others. Hence, the xbrl filing applicability is constantly widening to reap lavish advantages of this globally standardized business reporting language.
The Ministry of Corporate Affairs, Govt of India, has necessitated filing of the financial statements in xbrl format since the financial year 2010-2011. The Online Returns Filing System of RBI uses xbrl system. And, to support electronic filing of their respective disclosures by companies, SEBI has set up a xbrl enabled platform www[DOT]corpfiling[DOT]co[DOT]in .