XBRL Presentation Handout

Presented By: CA. Nirmal Ghorawat 21/01/2012

SESSION 1 OVERVIEW
XBRL - SETTING THE SCENE
WHY?
WHAT?
“the future of financial WHO?
reporting” HOW?
WHERE?
BENEFITS!
HOW TO DO THE TAGGING?
Presented by:
NIRMAL GHORAWAT
ACA, B.Com (Hons)
Presented By: CA. Nirmal Ghorawat 2

SETTING THE SCENE

Presented By: CA. Nirmal Ghorawat 3 Presented By: CA. Nirmal Ghorawat 4

WHAT WE SAY TO INVESTORS?
PUBLIC CORPORTATION LIMITED

CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 2011

Sales 1,500,000 1,000,000
Cost of Sales 1,300,000 900,000
Operating Profit 200,000 100,000

Finance Expenses (Net of Income) 70,000 50,000

Net Profit before Tax 270,000 150,000

Provision for Taxation 90,000 45,000

Net Profit 180,000 105,000

Earnings Per Share 1.80 1.05


Guwahati Branch of EIRC of ICAI 1


WHAT THEY HEAR?
PUBLIC CORPORTATION LIMITED CAN WE TALK?
CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 2011
Sales 1,500,000 1,000,000
BLAH BLAH 1,300,000 900,000
BLAH BLAH 200,000 100,000

BLAH BLAH 70,000 50,000
BLAH BLAH 270,000 150,000

BLAH BLAH 90,000 45,000

Net Profit 180,000 105,000
Earnings Per Share 1.80 1.05


WHY XBRL? WHY XBRL?
FINANCIAL REPORTING model today is MANUAL & DISJOINTED
FINANCIAL REPORTING INVOLVES
MANUAL PROCESSES
AUDIT COMPANY DATA
INSPITE OF AUTOMATION
SOFTWARE
PACKAGE
ERP REPOSITORY OF DATA PROCESSING
MANUAL
REGULATOR WHY? EXTRACTION
AND
BECAUSE COMPUTER APPLICATIONS REKEYING
MANUAL MANUAL
SELDOM INTERACT THEMSELVES OF
PROCESSES
MANUAL

PROCESSES PROCESSES
DATA
WHY?

AUDITORS REPORTING DIFFERENT APPLICATION HAVE
COMPANY USERS DIFFERENT DATA STRUCTURES

ACCESSING REPORTING DATA TODAY..!! WHY XBRL?
FINANCIAL REPORTING
IS DISJOINTED

WHY?

BECAUSE REGULATORS/ USERS
HAVE DIFFERING REQUIREMENTS

SEBI / ROC
INCOME TAX DEPARTMENT
RBI / CERC / IRDA
BANKS / FI’s / LENDERS
IF INTERNATIONAL OPERATIONS?
ET CETERA
Courtesy: Ms. Liv Watson, XII



WHAT IS XBRL? WHAT IS XBRL?
An Abbreviation for: XBRL is
eXtensible Tagged Data XBRL
Open Standard IS THE
Business
Based on XML EMERGING
Reporting GLOBAL
Language for Electronic
Language Communication of STANDARD
OF
Business and Financial
Information & On the Internet FINANCIAL
REPORTING
eXtensible


XBRL IS TAGGED DATA WHAT IS TAGGING?
PLAIN ‘UNSTRUCTURED’ TEXT TAGGED DATA
XBRL tags INDIVIDUAL FINANCIAL
TAXONOMY
INFORMATION Nirmal Ghorawat
CONCEPTS for Electronic
434, Ajanta Shopping
Dissemination
Centre, Ring Road,
Surat – 395002
CONCEPTS are defined TAGGING Gujarat
based on a Common
+91-261-2327434
Framework (say, Indian
nirmal.ghorawat@icai.org
GAAP, IFRS) – in a INSTANCE
DOCUMENT
TAXONOMY


WHAT’S IN A TAG? XBRL IS OPEN STANDARD
Label XBRL is
Description FREE OF ALL LICENSES
Data Type ATTRIBUTES
Balance Type OR
SOFTWARE /
Period Type META DATA
APPLICATION
Reference (DATA ABOUT
DATA) INDEPENDENT
Presentation
Calculation




XBRL IS ‘customized’ XML XBRL IS EXTENSIBLE
XBRL is FLEXIBLE..
Based on the XML Every entity’s business operations have UNIQUE
aspects of reporting.
However, XBRL is DEFINE THE CONCEPT
DISCLOSE THE
Powerful & Flexible version of TAXONOMY
ANNUAL
DEFINITION TOGETHER
REPORT
XML WITH THE FACT
Defined specifically to meet ------
the requirements of Business USE THE CONCEPT EXTENSION TAXONOMY
& Financial information DEFINED IN THE TAXONOMY


WHO DEVELOPS XBRL? WHO DEVELOPS XBRL?
XBRL is being developed by XBRL
Mr. Charles Hoffman, International Inc. (XII)
AICPA, proposed the idea XII is Not for Profit Consortium of
to use XML for electronic Regulators / Government
reporting of Financial Agencies, Accountancy Institutes,
Information to the AICPA Leading Corporates & IT &
Mr. Charles Hoffman,
High Tech Task Force AICPA
Financial / Professional Services
XBRL was born…!! Companies.


WHO DEVELOPS XBRL?
XBRL International Inc. (XII) is a
Consortium similar to how the U. P.
C. Seal (commonly ‘Bar Code’) was
developed…
& BAR CODING HAS
REVOLUTIONISED PRODUCT
DISTRIBUTION…
WHAT WILL XBRL DO TO
FINANCIAL REPORTING?



HOW XBRL WORKS? HOW XBRL WORKS?
Unstructured Text Structured Text Unstructured Text
Inventory <InventoryInformation> Inventory
Inventory

Inventory consists of produce purchased for resale and Inventory consists of produce
Inventory consists of produce purchased for resale and
supplies and are stated at the lower of cost or market purchased for resale and supplies supplies and are stated at the
using the first-in, first-out (FIFO) method. Inventory as of and are stated at the lower of cost lower of cost or market using
December 31, 2006 and 2005 amounted to $45,594 and
45, or market using the first-in, first-out the first-in, first-out (FIFO)
$34,456 respectively.
34,456, (FIFO) method. Inventory as of
method. Inventory as of
December 31, 2006 and 2005
amounted to $45,594 and
December 31, 2006 and
$34,456, respectively. 2005 amounted to $45,594
45,
and $34,456 respectively.
34,456,
</InventoryInformation>
Courtesy: Mr. Charles Hoffman, AICPA Courtesy: Mr. Charles Hoffman, AICPA

HOW XBRL WORKS? HOW XBRL WORKS?
Structured for PRESENTATION Unstructured Text Structured for MEANING Unstructured Text
<html> Inventory <Inventory> Inventory
<bold>Inventory</bold>
<bold> </bold> <ConsistsOf>produce purchased for
ConsistsOf>
Inventory consists of produce Inventory consists of </ConsistsOf
</ConsistsOf>
resale and supplies</ConsistsOf> Inventory consists of

purchased for resale and supplies and are produce purchased for StatedAt>
<StatedAt>lower of cost or produce purchased for
resale and supplies and market</StatedAt>
</StatedAt
</StatedAt>
stated at the lower of cost or market using are stated at the lower of resale and supplies and are
the first-in, first-out (FIFO) method. <ValuationMethod>FIFO</ValuationMet
ValuationMethod> </ValuationMet
</ stated at the lower of cost or
cost or market using the hod>
hod>
Inventory as of December 31, 2006 and first-in, first-out (FIFO) market using the first-in,
2005 amounted to <bold>
<bold>$45,594</bold> <Value2006
<Value2006>$45,594</Value2006>
2006> </Value2006
</Value2006> first-out (FIFO) method.
</bold> method. Inventory as of
and <bold>$34,456</bold>
</bold>, December 31, 2006 and <Value2005>$34,456</Value2005>
Value2005>
2005 </Value2005>
</Value2005 Inventory as of December
<bold> </bold>
respectively.
 2005 amounted to </Inventory> 31, 2006 and 2005
</html> $45,594 and $34,456
45, 34,456, amounted to $45,594 and
45,
respectively. $34,456 respectively.
34,456,
Courtesy: Mr. Charles Hoffman, AICPA Courtesy: Mr. Charles Hoffman, AICPA

HOW XBRL WORKS? TERMS IN XBRL
Structured for MEANING, GLOBAL
STANDARD Unstructured Text TAXONOMY
<InventoryComponents contextRef=“D-
contextRef=“D- Inventory
2006”>
”>produce purchased for resale and
2006”> An XBRL TAXONOMY is a dictionary
supplies</InventoryComponents>
</InventoryComponents>
<InventoryCostBasis contextRef=“D-
contextRef=“D-
Inventory consists of of financial reporting terms or
produce purchased for
2006”>
”>lower
2006”> of cost or resale and supplies and concepts which the XBRL
market</InventoryCostBasis >
</InventoryCostBasis are stated at the lower of LABELS language uses, and it helps to
<ValuationMethod contextRef=“D-
contextRef=“D- cost or market using the
2006”>
”>FIFO</ValuationMethod>
2006”> </ValuationMethod> first-in, first-out (FIFO) define specific tags (LABELS) for
<Value2006
<Value2006 contextRef=“D-2006”
contextRef=“D-2006” method. Inventory as of
unitRef=“USD”decimals=“0”>45594</Value2
unitRef=“USD”decimals=“0”> </Value2
</Value December 31, 2006 and
individual items of data
006>
006> 2005 amounted to
CONCEPTS (CONCEPTS) .
<Value2005
<Value2005 contextRef=“D-2006”
contextRef=“D-2006” $45,594 and $34,456
45, 34,456,
unitRef=“USD”decimals=“0”>$34,456</Value
unitRef=“USD”decimals=“0”> </Value respectively.
2005>
2005>
Courtesy: Mr. Charles Hoffman, AICPA


TERMS IN XBRL XBRL TAXONOMY
Presentation
Presentation
Presentation
Presentation
Presentation
Standardization Presentation
INSTANCE Деньгиenїх et эквиваленты
Comptant Comptant
現金及び現金等価物
现金与现金等价物
Гроші &&Cashеквіваленти
Cash та Geld nahe Mittel
Kas и Geldmiddelen
ихEquivalents
Geld Equivalents
DOCUMENT
References
An XBRL instance document is an Label
cashCashEquivalentsAndS
GAAP I.2.(a)
Instructions
XML file, designed to be read only hortTermInvestments
Ad Hoc disclosures
XBRL
by computers, that contains
Item
business reporting information
Calculation
and represents a collection of Cash = Currency + Formulas
Deposits Cash ≥ 0
financial facts using tags from one Contexts
US $
taxonomies.
or more XBRL taxonomies. FY2004
Validation Budgeted


TERMS IN XBRL TERMS IN XBRL
PRESENTATION CALCULATION
LINKBASE LINKBASE
• Part of Taxonomy • Part of Taxonomy
• Defines relationships that • Defines ADDITIVE (+ OR -)
arrange elements allowing relationships between
them to NAVIGATE the NUMERIC items in taxonomy
parent-
taxonomy content in parent- expressed as parent-child
parent-
child structures structures (hierarchies).
(hierarchies).
(hierarchies).
(hierarchies).


TERMS IN XBRL TERMS IN XBRL
REFERENCE FORMULA
LINKBASE LINKBASE
• Part of Taxonomy • Part of Taxonomy
• LINKS the Concepts to their • Defines LOGICAL
Statutory References or to relationships between
authoritative (Accounting NUMERIC items in taxonomy
Standards) references in the expressed as parent-child
parent-
GAAP.
GAAP. (hierarchies).
structures (hierarchies).




TERMS IN XBRL AFTER XBRL..!!
yes… we
BUSINESS
RULES
YES
can..!!
• FORMAL statements that
defines or constrains some
aspect of the concepts in the
taxonomy or to control or
influence their behaviour in
DOCUMENT.
the INSTANCE DOCUMENT.


AFTER XBRL..!! AFTER XBRL..!!
FINANCIAL REPORTING IN THE ERA OF XBRL WILL BE AUTOMATED. FINANCIAL REPORTING IN THE ERA OF XBRL WILL BE AUTOMATED.

AUDIT COMPANY DATA AUDIT COMPANY DATA
SOFTWARE ERP REPOSITORY SOFTWARE ERP REPOSITORY
PACKAGE PACKAGE

REGULATOR REGULATOR
APPLICATIONS ARE INTERACTING
WITHOUT HUMAN INTERVENTION
MANUAL MANUAL MANUAL MANUAL
PROCESSES PROCESSES PROCESSES (m2m – machine 2 machine)
PROCESSES

AUDITORS REPORTING AUDITORS REPORTING
COMPANY USERS COMPANY USERS

BENEFITS OF XBRL !! AFTER XBRL..!!
Accounting ERP Printed
Financials
XBRL
“In-house” Regulatory Investors
Filings
Analysts
what Bar Code has done for Product Distribution,
Internal
XBRL XBRL Management
XBRL will do for Financial & Business Reporting Reports

Regulators
Analytics Creditors
Spreadsheets

XBRL
Documents Other Sources Web sites



XBRL USES..!! BENEFITS OF XBRL !!
Company internal and external Financial
Reporting Cost Savings,
Reporting to all types of Regulators Greater Efficiency and
Tax and Financial Authorities
Corporate Regulators
Improved Accuracy and
Loan Reports to Banks / Central Banks reliability
Exchange of Information between Enhanced Comparability
Government Departments To all those who create, transmit,
create,
Can be used for a wide range of other use or analyze financial and
financial and statistical data which needs
business information
to be stored, exchange and analysed.


BENEFITS OF XBRL !! XBRL MYTHS..!!
"Through Internet delivery, XBRL will also provide analysts
XBRL is
and investors with extensible financial data to make informed Complex & Difficult
decisions about the company. We see XBRL as not only the
future standard for publishing, delivery and use of financial
an Accounting Standard
information over the Web, but also as a logical business a Computer Program
choice.“
- John Connors, Chief Financial Officer, Microsoft a Limited Chart of Accounts
Proprietary Information
Standard or software
Reporting / Regulatory XBRL does not change what
is Reported, only how it is
burden
Reported…!!


XBRL EVERYWHERE!!
WHERE? XBRL IN PLAIN ENGLISH
How we submitted Financial Information
till date..!!

Particulars 31/03/2011 31/03/2010

Cash and Cash Equivalents 20,000 15,000

How we will submit Financial Information
in XBRL..!!
<in-gaap:CashCashEquivalents id="TAB1"
TAB1
TAB decimals="0"
0
contextRef="I2011
I 2011" unitRef="INR 20000
INR">20000
INR 20000</in-
gaap:CashCashEquivalents>
<in-gaap:CashCashEquivalents id="TAB2"
TAB2
TAB decimals="0"
0
contextRef="I2010
I 2010" unitRef="INR 15000
INR">15000
INR 15000</in-
gaap:CashCashEquivalents>

Source:
Presented By: CA. Nirmal Ghorawat w w w . x b r l p l a n e t . o r g 47 Presented By: CA. Nirmal Ghorawat 48

XBRL IN PLAIN ENGLISH The story so far..!!
Decoding the XBRL Label / Tag XBRL is all about
tagging
TAG LABEL TAG ID DECIMALS … but these tags are
electronic
<in-gaap:CashCashEquivalents id="TAB1 decimals="0“
TAB1"
TAB1 0 A bit like a bar code
contextRef="I2011 unitRef="INR 20000</in-gaap:CashCashEquivalents>
I2011"
I2011 INR">20000
INR
… but for financial
reporting concepts
CONTEXT UNIT VALUE TAG LABEL


A bit like a bar code … YEAR- END ACCOUNTS FILING
• But instead of
tagging a tin of
beans

• … we’re tagging an
Bookkeeping Year-end accounts Filing
item in a set of
accounts

HOW TO DO THE TAGGING?

POST-PRODUCTION TAGGING ACCOUNTS PRODUCTION SOFTWARE
Extra process

Tagged
accounts

Tagged
accounts
Bookkeeping Year-end accounts Bookkeeping Year-end accounts
Software adds XBRL
tags Software adds XBRL tags
NO CHANGE IN THE PRESENT PROCESS EXTRA PROCESS + other adjustments INTEGRATED PROCESS
and inputs


SESSION 2 OVERVIEW
XBRL IN INDIA
o XBRL INDIA – ESTABLISHED
JURISDICTION OF XII
o REGULATORS ADOPTING XBRL IN
INDIA
o MCA21 FILING & CONVERSION
o XBRL CERTIFICATION
o XBRL ~ AN OPPORTUNITY..!!


XBRL IN INDIA XBRL IN INDIA
XBRL India XBRL India
is the Indian Jurisdiction of XBRL is the Indian Jurisdiction of XBRL
International. International.
is a Company registered under Section 25 of is a Company registered under Section 25 of
Companies Act, 1956 Companies Act, 1956
is incorporated for managing the affairs of is incorporated for managing the affairs of
Indian Jurisdiction of XBRL International. Indian Jurisdiction of XBRL International.

Its main objective is to promote and Its main objective is to promote and
encourage the adoption of XBRL in India as encourage the adoption of XBRL in India as
the standard for electronic business the standard for electronic business
India.
reporting in India. India.
reporting in India.

XBRL IN INDIA XBRL IN INDIA
IMPLEMENTED
UNDER DEVELOPMENT
Capital Adequacy Reporting by
Banks as per Basell II Norms “SUPER-D” FILING for ALL
LISTED COMPANIES / MUTUAL
MANDATED FUNDS
e-Filing of Annual Reports for a
class of Companies from April UNDER DEVELOPMENT
1, 2011
XBRL based REGULATORY
INFORMATION MANAGEMENT
SYSTEM (RIMS)



XBRL IN INDIA MCA XBRL IMPLEMENTATION APPROACH

PHASE I – 1/APRIL/2011 PHASE II – 1/APRIL/2012
SELECT Class of Companies ALL COMPANIES (Including
Banking, NBFC, Insurance &
XBRL will change the way All Listed Companies & Power Sector Companies)
their Subsidiaries Existing C & I (Commercial &
we COMMUNICATE with Companies with Paid up Industrial) Taxonomy to be
UPDATED & MAINTAINED to
REGULATORS in the Capital > 5 crores
conform with REVISED
Companies with Turnover > VI.
coming years..!! 100 crores
SCHEDULE VI.
New Taxonomy(ies) for Banking,
However, Banking, NBFC, NBFC, Insurance & Power Sector
Insurance & Power Sector Companies.
companies are excluded.
Source: http://xbrl.icai.org

MCA XBRL IMPLEMENTATION APPROACH MCA21 XBRL FILING PROCESS

PHASE I – 1/APRIL/2011 Taxonomy EXTENSIONS are NOT ALLOWED
V
Companies WHICH ARE O
1. NOT Listed Companies or their Subsidiaries L SEPARATE INSTANCE DOCUMENTS FOR FORM
U 23AC
BALANCE SHEET &
2. Companies with Paid up Capital < 5 crores N BS
T PROFIT & LOSS ACCOUNT
3. Companies with Turnover < 100 crores A AND IF APPLICABLE :
R CONSOLIDATED BALANCE SHEET &
4. Banking, NBFC, Insurance & Power Sector Y
FORM
CONSOLIDATED PROFIT & LOSS ACCOUNT 23ACA
companies PL
Are EXCLUDED.


MCA21 XBRL MUTUALLY EXCLUSIVE
MCA21 XBRL SCOPE EXTENDED LINKS
FORM 23AC – BALANCE SHEET SOURCE & APPLICATION
OF FUNDS (VERTICAL)
BALANCE SHEET BALANCE
SCHEDULES RELATED A–
FORM 23AC A– P&L ACCOUNT SHEET
PROFIT & LOSS ACCOUNT TOTAL ASSETS AND LIABILITIES
TO BALANCE SHEET (HORIZONTAL)
CASH FLOW STATEMENT SCHEDULES RELATED TO
NOTES ON ACCOUNTS PROFIT AND LOSS
MAIN
DIRECTORS RESPONSIBILITY ACCOUNT INCOME
STATEMENT AUDITOR’S STATEMENT ALTERNATIVE
REPORT
DIRECTOR’S REPORT
DIRECT METHOD
GENERAL INFORMATION CASH FLOW
ABOUT THE COMPANY STATEMENT INDIRECT METHOD
SIGNATORIES TO THE BALANCE
SHEET


MCA21 XBRL MCA21 XBRL Filing Manual
Use of Footnotes

INSTANT (I) “AS AT” Link on Non-financial information in Annual Reports
DURATION (D) “FOR THE PERIOD ENDED ON” to the Concepts
ABSTRACT GROUP OF ELEMENTS for eg. Security furnished in the case of Secured Loans
TUPLES TABLE OF ELEMENTS
DETAILED TAGGING Whenever any value or information are adjusted or
BLOCK TEXT TAGGING clubbed to match the calculation relationships (and
thus are different from the actual financial
statements of the company) – XBRL Filing Manual


MCA21 XBRL Filing Manual MCA21 XBRL FILING PROCESS
HTML Guidelines
FINANCIAL
TAXONOMY ON MCA
INFORMATION
PORTAL
Only specific HTML tags are allowed in XBRL
Instance Document
FORM 23AC
FORM
“Clean HTML” Converters – available with the Filing TAGGING 23ACA
ATTACH
Tool / Freely available on the Internet.

Warning Message during the Validation INSTANCE
DOCUMENT VALIDATION PRE-SCRUTINY

Presented By: CA. Nirmal Ghorawat 69
OFFLINE
Presented By: CA. Nirmal Ghorawat
ONLINE 70

MCA21 XBRL ICAI Guidance Note on XBRL Certification
Objective
PROPER VALIDATION AS PER MCA
XBRL
FILING VALIDATION TOOL To provide guidance to the practitioners in
certification of XBRL formatted statements in terms
of the requirements of the Ministry’s General
Circular No. 57/ 2011 dated July 28, 2011 read with
CERTIFICATION OF XBRL MCA’s General Circular No. 43/2011 dated July 07,
2011.
FINANCIAL STATEMENTS BY
PRACTISING PROFESSIONAL




ICAI Guidance Note on XBRL Certification ICAI Guidance Note on XBRL Certification
General Approach to Preparation of XBRL Financial Statements Management Responsibility - Primary

Completeness Selection, Maintenance and Testing of
Taxonomy.
Mapping
Accurate Tagging & Mapping of Data
Accuracy Elements to XBRL reports..

Structure Enforcing change Management
Procedures for XBRL processes


ICAI Guidance Note on XBRL Certification ICAI Guidance Note on XBRL Certification
Practitioner’s Responsibility Practitioner’s Responsibility - Procedures

To certify that the said XBRL financial statements Compare Source Document (Annual Report) with
fairly present, in all material respects, the audited XBRL Instance Document (Human Readable
financial statements of the Company from which generated through relevant converter.
such XBRL financial statements have been
prepared, in accordance with the taxonomy Management Representation Letter
prescribed by MCA.


XBRL - AN OPPORTUNITY ..!!
COMPLIANCE WITH MCA
REGULATORY ENVIRONMENT
IMPACT ASSESSMENT OF
XBRL ON MIS
MAPPING / TAGGING OF LINE
ELEMENTS IN MIS
(ACCOUNTS MASTER) WITH
XBRL TAXONOMY
CONSIDERING THE NEED
FOR EXTENSION TAXONOMY



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