MCA-XBRL mandate update
The following blog post is an update on MCA-XBRL mandate.
The Department of Financial Services (DFS) in the Finance Ministry has a new Secretary in Mr D.K. Mittal. Prior to this appointment, Mr Mittal was Corporate Affairs Secretary (Aug 1 news). Due to this new movement in ministry MAIA Intelligence expects XBRL movement to happen with other financial regulators very soon as Mr. D K Mittal was great proponent of XBRL while heading the MCA. The last date for MCA mandate has been extended to 30.11.2011 (or within 60 days of the applicable due date, whichever is later) – as per circular no. 57/2011 dated 28.07.2011 from MCA.
This is also to inform that XBRL validation tool has been released by MCA for software vendors and MAIA Intelligence is working with ministry to get validated postXBRL instance confirmed. We understand that by August 16, 2011 MCA portal should also be ready for filing.
MAIA is also glad to announce that over 50+ large enterprise level corporate having multiple entities have signed up for MAIA Intelligence’s postXBRL solution for integrated, on premise in house and outsourced services for XBRL with various MAIA partners across India. Prospective buyers, please be informed that there are limited quality professionals on XBRL knowledge. This is to urge them to close their XBRL requirements with MAIA Intelligence’s partners by August 2011 so that their work can be delivered on priority and within stipulated timelines. All orders are logged in on first come first served basis.
postXBRL value proposition from compliance to compete has been well received within industry and customers are keen to build their internal XBRL competency. MAIA Intelligence and its partners have been conducting various workshops for the training accountants on XBRL benefits and usage. This new wave of XBRL is going to help us reduce the compliance cost and ensure transparency. Investor friendly customers have been keen to convert their last 3 year financial statements in XBRL and host it on their website for research and analysts to consume the XBRL financial data.
Meanwhile, please find below experts observations on the current efficiency of Indian GAAP Taxonomy:
General Project related remarks for which experts are engaging with MCA
- lack of technical documentation – e.g. guidance on taxonomy architecture, rules & principles used during development
- lack of business documentation – e.g. guidance on making extensions for filers, which will be allowed next year; scope & content of taxonomies
- no documentation on long term project objectives was found (no information about plans related to taxonomy – e.g. its future reporting scope)
Because of lack of abovementioned documents it will be hard to determine whether the taxonomy satisfies all expectations and requirements of regulator.
Taxonomy Architecture related remarks which experts have shared with MCA
- missing Reference Linkbase – label called ‘Definition’ is useful & helpful, but it can’t replace Reference Linkbase
- Dimensions are not used, though there is a great potential for it
- potential for deeper modularization is not yet exploited – e.g. by sectors or standards themselves
- lack of noticeable entry point schemas
- folder with taxonomy is called ‘Final Taxonomy’ – no date stamp included in the name (versioning related issue)
- contextual labels are greatly underused e.g. netLabel
- business rules are documented but Formulae is not implemented in the taxonomy
MAIA Intelligence is in touch with MCA officials will keep its customers, partners and prospects posted on the updates and outcomes.
Posted on August 1st, 2011 by Sanjay Mehta
Filed under: Emerging Trends, View Points & Perspective
If any training session is conducted on XBRL (eXtensible Business Reporting Language), we would like to attend the same in Bangalore.
Hi There,
This is really informative, MCA has provided the Taxonomy which forms the basis for tagging financial and business information in XBRL. This Taxonomy is an electronic classification system of tags defining thousands of business reporting concepts (including Text) and their relationships.
Is it possible that on the timeline there are not any other XBRL SEC Filers?
XBRL Software Tools, serve xbrl eFiling solution for financial reporting of the company in XBRL format as per MCA mandate.