BBA-MBA Integrated

Term – II

Group Assignment of Financial Accounting

REPORT ON XBRL

Submitted to:
Ms. Punita Rajpurohit

On
(26/12/19)

Submitted by:

Roll No. Name

197209 Anjali Shaju

197233 Manjiri Divekar
197256 Tanisha Sarraf
197265 Yesha Doshi

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 TABLE OF CONTENTS

S. No. NAME OF TOPIC PAGE

NUMBER
1. Acknowledgement 3

2 Understanding XBRL 4
3 History and Background 5

4 Features 6-7
5 Concept 8
6 Examples 9-11
7 How it works 12-13
8 Advantages 14
9 Disadvantages 15

10 Application 16

11 Relevance 17
12 Commonly Asked Questions 18
13 Overview 19

14 References 20
15 Contribution Table 21

ACKNOWLEDGEMENT
We would like to express our deep sense of gratitude to Ms. Punita Rajpurohit, Professor of
Financial Accounting, Institute of Management, Nirma University, Ahmedabad, for giving us
a opportunity to carry out the project of making a report on XBRL, an area of our interest.

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We would also like to thank her for giving us the correct guidance required for the project
and constantly helping, motivating and supporting out each and every one of us throughout
the making of the project.

DATE : 26TH December 2019

UNDERSTANDING XBRL
XBRL is an electronic financial reporting language freely available, based on Extensible
Markup Language (XML) and created and consumed by XBRL-enabled applications. After
mapping data, software is used to pick, analyze, store, and exchange information, rather than
human labor, thereby reducing the chances of error. In addition, because it is a standardized
language, XBRL enables an efficient apple-to-apple comparison of financial data across

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multiple companies and industries. To this end, XBRL uses mapping to identify data items,
enabling them to be processed and analyzed in an interactive manner. XBRL mappings
provide financial societies with a digital standard-based system for planning, posting,
securely collecting and automatically sharing publicly held companies ' financial statements.
XBRL taxonomies specify the data structure to describe the concept's meaning in a sense. For
instance, ACME, Inc. records $152,623 in Quarter 1 gross profit. This information can be
shown in XBRL as it displays the business name (ACME, Inc.), a reporting term (Gross
Profit), the estimated currency (dollars), time period and rounding payment decimal /
precision settings.

HISTORY OF XBRL

XBRL’s beginning in 1998, can be traced to the initial efforts of one person, Charles
Hoffman, a certified public accountant from Tacoma, Washington. The American Institute of
Certified Public Accountants (AICPA) was also instrumental in pulling together what
eventually became XBRL International.

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The specification went through several version prior to XBRL v2.1 which was published in
2003.
 1.0- Published in July 2000, this version was based in DTDs. It expressed the
difference between data exchange in instance documents and metadata exchange in
taxonomy documents. Taxonomies were expressed as XML Scheme files, but these
were not used for instance validation.
 2.0- This version introduced use of XML Scheme substitution groups as a way of
allowing schema validation of instances. Concept relations were broken out into
separate XLink-based linkbases. Context data in the instance was collected into a
separate element.
 2.1- Published December 31,2003, this version tightened the definition of terms
significantly, allowing for the introduction of a conformance suite.

XBRL v2.1 has remained stable since publication, and has been updated only for errata
corrections. The standard has evolved significantly through the development of additional
XBRL modules.

FEATURES OF XBRL

1. Integration with MINISTRY OF CORPORATE AFFAIRS (MCA):

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It has an unlined Incorporation of Ministry of Corporate Affairs's Website. It gives green
signal to XML file using MCA Utility within the software itself. It uses Director
Identification Number (DIN) or Company Identification Number (CIN) to access updated
information from the MCA website.Produces ready-to-upload XML file to print and submit
on the website of MCA.

2. Trails of Audit:

It clearly defines the rights and roles of users and create different levels and basis for users
for better control and administration. It places sticky notes or footnotes in each and every
field and attaches working paper in form of evidence for each and every field.

3. Support:

Individuals can get support from developers, who are highly skilled and professionals, who
are highly knowledgeable. It provides the facility of extended hour support even during peak
hours. People can get support through various media options such as Whatsapp, Team
Viewer, Skype etc.

4. Excel Import-Export:

XBRL provides individuals with the facility of simple import- export via templates and they
can even download Excel templates with or without data. Another great function is that
people can quickly edit or upload data by importing prefiled excel templates.

5. Simplified Work Flow:

One main feature of XBRL which is one of the pre- requisite for smooth working is
simplified work flow. It helps them in searching companies through PAN, CIN, Name of
Company, etc. Individuals can get instant access to the details of the years long client. It acts

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as a powerful dashboard that helps in searching and controlling the clients. It sets up email
ids and send emails directly from the device to the customer.

6. Auto Calculation:

Another feature of XBRL is to auto calculate every fields of sub- groups and groups. When
any of the one field gets updated, all the related fields gets updated on its own.

7. Interlinking:

In all related fields, the information furnished in one field are automatically populated. It
provides a search facility with ‘tags’. It gives step-by-step instructions in planning and filing
the financial statement. Individuals can use the facility of one search box to search any page
field or any of the page.

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 CONCEPT OF XBRL

XBRL requires preparers to use software to assign all financial things to the elements inside a
taxonomy in their business reports. It is achieved with an Instance Paper that can be shared
and checked electronically between computers or displayed in a human-readable format( this
is called rendering).
XBRL US has released a guide on the XBRL US website to help financial statements
preparers start building XBRL accounts. The AICPA's XBRL US Preparers Guide offers
guidelines and thumb guide for using XBRL technology for filing financial statements.
Imagine that you are looking at the online website of a company's financial statements. Such
claims will usually just be in plain text. If you wanted to put such numbers in a spreadsheet
file to review the figures, you would have to insert or copy either account and the
corresponding number into the spreadsheet either manually.
Nevertheless, if the website data were available in eXtensible Business Reporting Language
(XBRL), you might simply convert this data from the website to a compatible XBRL
spreadsheet program (usually instantly).
Because of the standardized nature of identification tags and the language itself, one country's
financial data setting accounting standards like the U.S. GAAP, even if they are drastically
different, can be quickly translated into another country's agreed accounting standards.
Not all companies are required to report financial data in XBRL, but because it has become
popular, it has been proposed that it will not be long before all companies are required to
disclose their financial data in this language. iXBRL, where I stand for inline, is an update
that enables the embedding of XBRL metadata in an HTML document.

The American Institute of Certified Public Accountants (AICPA) created XBRL in 1998 with
version 1.0. In 2003, the latest version of the criteria, v2.1 has been formalized. While the

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v2.1 specification has since remained stable, several XBRL modules have been developed
that can be linked to new functionality or operability.

EXAMPLES OF XBRL

Example 1: European Banking Authority Produces Aggregate Data

The European Banking Authority now produces a remarkable range of aggregate data pulled
from its holdings of EU-wide bank filings. For analysts within the banking regulator, the
level of detail is exceptional, allowing them to select an area of interest and drill down within
geographies, lines of business, areas of risk, and institutional groupings, and to further refine
these results for individual institutions. If an analyst is interested in Non-Performing Loans in
southern Europe, for example, this information is a few clicks away. 

Example 2: Danish Business Authority Applies Machine Learning to

Financial Statements

The Danish Business Authority (DBA), known as Erhvervsstyrelsen, collects XBRL financial
statements from the approximately 240,000 private companies that operate in Denmark. It is
exploring cutting-edge ways to apply machine-learning techniques to predict possible
corporate failures.

DBA’s goal is to provide early warning information to entrepreneurs that their companies are
exhibiting symptoms that could lead to restructuring, closure, or bankruptcy. It takes
historical data about failed institutions, applies a range of techniques to their analysis, and
then lets machine-learning algorithms develop patterns that can be matched against every
other company’s data to locate similarities, and ultimately, risks. In its analysis, DBA is using
hard financial measures such as solvency ratios, as well as softer data points such as changes
in the lag between the end of the reporting period and the filing date.

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Example 3: Ukrainian Authorities Take a Coordinated Approach to
Reporting

Following the passage of new accounting laws (using International Financial Reporting
Standards Foundation for disclosure), the Ukrainian authorities, including the Ministry of
Finance, the National Bank of Ukraine, the National Securities and Stock Markets
Commission (NSSMC), and the National Commission for the Regulation of Financial
Services, agreed to a coordinated approach to reporting.

Financial statements prepared in Inline XBRL will be filed with the NSSMC and the data
distributed to other agencies that need the information. The data will also be publicly
available, improving transparency in this market. Entities affected by the changes include
public companies, the financial sector, and a range of large enterprises. The changes are
expected to come into effect in 2019.

The Ukrainian project seeks to develop a Standard Business Reporting (SBR)-style “report
once” mechanism that lowers the administrative burden and reduces implementation costs by
simplifying a range of data definitions and using a single portal to submit data to a number of
different agencies.

Example 4: German Banks Use XBRL for SME Credit Assessment

The Deutsche Bundesbank (the German Central Bank), in coordinating with XBRL
Germany, has been working with German banks to develop a small- and medium-size
enterprise (SME) credit reporting system that leverages existing capabilities to generate
XBRL financial statements for tax reporting. Commercial banks will be able to use these
XBRL-formatted financial statements for credit and risk assessment.

The expectation is that wherever widespread private company financial statements or tax
reporting are available in XBRL format, the private sector should leverage those reporting

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capabilities. The goal is to lower costs and the administrative burden for companies that need
to finance their operations and to lower costs and risks for financial institutions.

Example 5: ING Discounts Loan and Credit Applications That Provide

XBRL Financial Statements

In 2015, the Dutch bank ING began offering discounts on loan and credit applications for its
SME customers in the Netherlands if they provided XBRL versions of financial statements
through the Dutch SBR platform. When information is provided in this format, banks are
better informed about their customers’ financial profiles.

By 2017, ING required its clients and prospective customers to adopt the standard or pay
extra to file on paper.

Example 6: State of Florida Implements XBRL Reporting Requirements

In the United States, the state of Florida has more than 400 separate municipalities, including
282 cities. In accordance with US Government Accounting Standards, these municipalities
prepare Comprehensive Annual Financial Reports (CAFRs), but their reports are in analog
format.

Given the importance of municipal bond markets to the long-term funding of local and state
infrastructure, Florida is moving toward digital government financial and performance
reporting. The state will require the collaborative design and implementation of XBRL-based
reporting from its municipalities. The CAFRs will be digital and all local governmental
financial statements for fiscal years ending on or after September 1, 2022, will be filed in
XBRL format.

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 XBRL BASICS - HOW DOES IT WORK?

XBRL enables preparers to utilize software to tag all financial items in their business reports
to the elements within a taxonomy.  This is accomplished with an Instance Document which
can be electronically exchanged and validated between computers or viewed in a human
readable format (this is called rendering).

XBRL US has published a guide which is available on the XBRL US Web site to help
preparers of financial statements get started in creating XBRL financial statements.  The
XBRL US Preparers Guide, which the AICPA was involved in creating, provides rules and
rule of thumb for using XBRL technology for financial statement reporting.  

Below is a list of frequently used terms and explanations of how XBRL works:

What is a Taxonomy?

A taxonomy is a grouping of financial concepts (known as “elements”) in which each concept

is defined  (similar to a dictionary).  Additionally, the taxonomy also defines the relationships
between the concepts within the group.  Therefore, if we are working with a balance sheet
item such as Cash, the taxonomy would include the definition of Cash and would also
demonstrate how Cash may relate to other balance sheet items (within the taxonomy) such as
rolling up to Current Assets and eventually Total Assets. All three of these items (Cash,
Current Assets, and Total Assets) are financial concepts that are defined and presented in the
taxonomy as elements.  Public taxonomies have been developed by market constituents and
are maintained by XBRL.

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The US GAAP Taxonomies contain over 15,000 elements representing commonly reported
financial concepts for US GAAP financial statements and are available and maintained by
XBRL US.

What is a Taxonomy Extension?

The X in XBRL stands for eXtensible. Therefore, if a particular concept does not already
exist in a public taxonomy there is the ability to add to or change the elements to meet the
company’s needs; called extending the taxonomy. This extensibility is one of the most
important aspects of XBRL because it allows for wide adaptation and uses of XBRL.

What is Tagging?

Tagging is the process of applying the entity’s unique financial data to an element within the
taxonomy. The tagging process is performed during the creation of an instance document.

What is an Instance Document?

An instance document is the file that includes the company specific business reporting
information in a structured manner that computers can intelligently recognize and exchange. 
It is expected that instance documents will be created for individual financial reports (e.g.,
annual reports, earnings releases, submissions to creditors, etc.). The instance document is an
XML file where everything comes together; here the entity specific data links (tags) to the
elements in the taxonomies to form the XBRL document that can be validated and
transmitted automatically for utilization by numerous consumers.

What is Rendering?

As we stated above, an instance document is an XML file that is computer readable. 

Rendering is the process in which XBRL software will translate an instance document into a
human readable format.

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 XBRL Tools

In order to work in XBRL, you will need software. There are a number of XBRL tools in the
marketplace today.  Some tools enable you to work with taxonomies (i.e., creation, extension,
and validation), others focus on the instance document (creation and validation). There are
also tools that will specialize in rendering, analysis, and reporting.  Some tools may offer one
or more of these services within the application while others may only focus on one function.
You can refer to the XBRL US Web site for details on vendors that support XBRL.

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 ADVANTAGES OF XBRL
XBRL has the power to change the reporting landscape for the better. For instance:

1. It offers a range of advantages to the users. Nevertheless, anyone who wants to analyze or

compare data will benefit from XBRL because it makes information more readily available to
anyone–from market owners to policy analysts and government agencies.
2. Reduces the need for manual input of data. Most organizations also rely on a large number
of manual processes to prepare and review their financial statements, which not only takes
time, but also carries the risk of a mistake in data entry. XBRL decreases the dependency on
such manual input and review processes by a client, which ensures that more time can be
spent on data analysis.
3. XBRL is not for financial data alone. It's a common misconception, but for financial
reporting, XBRL is not just useful. In addition, XBRL can also be used for non-financial data
communication, such as inventory status of a company. This means that if an organization
leverages XBRL's influence, it may potentially improve its own internal monitoring
processes for management.
4. The value of it is acknowledged by regulators . The SEC is no stranger to XBRL, and since
2009, it has allowed large public corporations to use XBRL to file their accounts. This
provision for XBRL reporting has since been expanded, more recently to International
Private Issuers who are planning their IFRS financial statements.
5. The costs of enforcement with XBRL are falling. A recent report released by XBRL US
and AICPA highlighted that the average cost of XBRL training had nearly halved between
2014 and 2017, with most businesses having annual costs of $5,500 or less.

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6.

DISADVANTAGES OF XBRL
1. Inexperienced users

Not all accountants are familiar with XBRL; in fact, the language has only been heard by
some. The sophistication of XBRL combined with the ability of novice users to build
transmission data increases the chance of errors. Such errors lead to a lack of structure and
investor confidence. For this reason, several companies outsource XBRL implementation
rather than requiring it to be implemented internally.

2. Company transparency

A major push to use XBRL includes financial transparency. XBRL eliminates in the accounts
the right of a corporation to "cover" financial tricks. Despite the fact that the nature of XBRL
makes it easier, cheaper and faster to file financial information, investors may find
themselves digging deeper to determine the exact data reported.

3. Cost

Price remains the biggest drawback. According to Malin, Bergquist and Company, LLP,
"Although some experts say that, over time, XBRL may lead to a reduction in reporting costs
of up to twenty-five percent, some businesses the find it difficult to justify the initial costs..."
Unless a company has an automated tagging method, tagging XBRL data requires hours of
work, increasing the costs associated with tagging.

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4.Security

Since XBRL data is always available, preserving its integrity requires more protection. Such
stringent security requirements concern not only infringements of security committed outside
the company database, but also infringements of security from within the company. More
accurate data makes XBRL a fantastic resource, but it also ensures the data needs to stay
secure. If a data breach occurs and investors gain access to the data breached (because of
their continuous availability), then the breach may result in incorrect investment decisions.

APPLICATION OF XBRL

At all stages of business analysis and review, XBRL offers significant advantages. The benefi
ts are seen in automation, cost savings, quicker, more reliable and accurate data handling, bett
er analysis, and better information and decision-making efficiency. XBRL helps financial
data producers and consumers to move resources away from costly manual procedures,
typically involving time-consuming data analysis, assembly and re-entry. They concentrate
on research, helped by applications and programs that can validate and process information
from XBRL.
XBRL is a flexible language designed to support all current reporting aspects of various coun
tries and industries. The extensible nature means that it can be modified even at the individual 
level of the company to meet specific business requirements.

APPLICATION IN INDIA

MCA has made the use of XBLR compulsory for companies falling under Phase I of
implementation, such companies will now have to mandatorily file balance sheet profit and
loss A/c under sub section (1) of section 220 of companies act,1956 using XBRL taxonomy
with effect from 1st April 2011.
Companies falling under phase I
1. All listed companies and their subsidiaries(foreign subsidiaries included)
2. All companies having paid up capital of rs. 5 crore & above or turnover of rs 100
crore and above.

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APPLICATION IN USA
The securities exchange commission has mandated the use of XBRL and all the other public
companies must file in XBRL format in the following manner
1. Companies with worldwide public float greater than $5 billion to comply starting with
period ending in June 2009
2. 2. All other large accelerated filers to comply starting with period ending June 2010
3. All other public companies comply with period ending June 2011

RELEVANCE
What are the potential uses of XBRL?

XBRL can be applied to a very wide range of business and financial data. Among other
things, it can handle:

 Internal and external reporting of the Company.

 Corporate reporting to all forms of authorities, including tax and financial institutions,
central banks and governments.
 Disclosure of loans and applications; evaluation of credit risk.
 Information exchange between government departments or other bodies, such as
central banks.
 Authoritative accounting literature–offering a structured way to describe accounting
documents provided by authoritative bodies.
 A wide range of other financial and statistical data to store, share and analyze.

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 COMMONLY ASKED QUESTIONS

1.What is the future of XBRL?

XBRL is expected to become the standard way for business financial information to be
registered, processed and transmitted. It is capable of being used internationally for a wide
variety of business purposes, regardless of the country's language. It will generate significant
cost savings and productivity improvements, enhancing processes in corporations,
governments, and other organizations.

2.Who can benefit from using XBRL?

XBRL can be used by all types of organizations to save costs and improve business and
financial information handling performance. It can be tailored to a wide variety of different
specifications because XBRL is extensible and versatile. Whether they are preparers,

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transmitters or users of business data, all participants in the financial information supply
chain can benefit.

3. Does XBRL benefit the comparability of financial statements?

XBRL benefits from comparability by helping to recognize truly alike data and to
differentiate non-comparable details. Computers can process this information and fill in pre-
defined and personalized reports.

4. Would XBRL cause accounting standards to change?

No. XBRL is simply a knowledge language. The data recorded under different standards
must be accurately reflected–it does not alter them.

5. Was India an official member of XBRL?

India is now XBRL International's proven jurisdiction. A separate company was set up under
section 25 to handle XBRL India's activities. XBRL India's main goals are
• Sensitizing XBRL in India
• Developing and preserving Indian taxonomies
• Helping companies to embrace and incorporate XBRL

OVERVIEW

1. What is XBRL?
Extensive Business Reporting Language is a more sophisticated XML type. The Income Tax
Department in India already uses XML as an reporting language. It is a grounding breaking
model for both preparers and customers in the financial reporting process.
2. Need for XBRL
XBRL is more preferred as the standard method of reporting on conventional reporting of
company financial information. Different organisations used various terminologies earlier
when disclosing financial information. This often lead to mistake, lack of transparency and
conceptual difficulties. XBRL offers legibility, clearity and correlates with greater accuracy
each and financial line item and provides comprehensive information on all financial data.
3. Why XBRL?

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XBRL data is more reliable, precise and straight forward than data found in legacy electronic
and paper report of financial statement. It eliminate money, efforts, and mistakes. It marks
numbers and textual details. It provides free paper based reporting data and automatic
financial analysis.
4. Potential Uses of XBRL
Internal and external monitoring of the company. Corporate reporting of all levels of
authority, including tax and financial institutions, central banks and governments. Monitoring
of loans and applications. Evaluation of credit risk. Information exchange between
government or other institutions such as central banks. Authoritative literature on accounting-
including a position.
5. Ministry of Corporate Affairs Mandate
Companies whose balance sheet date is 31st March 2011 or onwards need to file their
financial statments in XBRL provided they qualify the criteria led as per Ministry General’s
Circular 37/2011 dated 7th June 2011.
6. Exempted Category
For this year, subsequent classes of companies are not required to file in XBRL format-
Banking Insurance Power, NBFC, other companies with less than 5 crores or less than 100
crores.

REFERENCES

MCA (2019). Ministry Of Corporate Affairs – XBRL. Retrieved from

http://www.mca.gov.in/MinistryV2/xbrl.html

Hayes, A (2019). eXtensible Business Reporting Language. Retrieved from

https://www.investopedia.com/terms/x/xbrl.asp

Batra, K (2017). XBRL – The Future Of Financial/Business Reporting. Retrieved from

https://www.charteredclub.com/xbrl-the-future-of-financialbusiness-reporting/

Intrino. (2019). The Importance of Adopting XBRL. Retrieved from

https://blog.intrinio.com/4-reasons-xbrl-adoption-important/

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Editor (2019). XBRL Basics - How does it work? Retrieved from
https://www.aicpa.org/interestareas/frc/accountingfinancialreporting/xbrl/howxbrlworks.htl

Singh, M (2019). The Changing Use of Structured Data: Examples from around the World.
Retrieved from https://www.xbrl.org/news/examples-of-xbrl-use-around-the-world/

Editor (2019).Features of XBRL. Retrieved from

https://www.taxmann.com/blogpost/2000001793/important-features-of-xbrl-software.aspx

MCA (2019). Ministry Of Corporate Affairs.Retrieved from

http://www.mca.gov.in/MinistryV2/xbrl.html

CONTRIBUTION TABLE

ROLL NO NAME CONTRIBUTION

197209 Anjali Shaju Poster(entire poster),
Introduction and History
(Report), Reference ,Editing
and formatting.
197233 Manjiri Divakar Application, examples,
relevance, references.
197256 Tanisha Sarraf Cover page,
acknowledgement, table of
contents,features, common
questions, advantages,

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 disadvantages,
overview,Compiling,
formating, referncing, poster
idea.
197265 Yesha Doshi Concept, edit, printing.

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