APPLICABILITY OF XBRL

APPLICABILITY OF XBRL
Numerous proficient persons are mystified about the applicability of XBRL (Filing of Documents and Forms in Extensible Business Reporting Language). MCA has issued [1]Notification on 06th November, 2017 in respect of explanation on obligatory applicability of XBRL on precise Companies. These rules may be called the Companies (Filing of Documents and Forms in Extensible Business Reporting Language), Amendment, Rules, 2017.

Recently on 8th March, 2018 MCA has issued Companies (Filing of Documents and Forms in Extendible Business Reporting Language) Amendment Rules, 2018 and clarify the Companies which required to file Financial Statement into XBRL.


This is article no. 286 of the series of editorials written by the author on corporate laws {Including Companies Act, 2013, SEBI, RBI Regulations, IBC, LLP Act, 2008 etc.}.

Filing of financial statements with Registrar: - The following class of companies shall file their financial statements and other documents under section 137 of the Act with the Registrar in e-form AOC-4 XBRL as per Annexure-I:-

Rule 3(1)
(i)  Companies LISTED with stock exchanges in India and Their Indian Subsidiaries;
(ii) Companies having Paid Up Capital of Five crore rupees or above;
(iii) Companies having Turnover of One Hundred crore rupees or above;
(iv) All companies which hereto covered under the Companies (Filing of Documents and forms in Extensible Business Reporting Language) Rules, 2011

Rule 3(2)
The Companies which have filed their financial statements under sub-rule (1) shall continue to file their financial statements and other documents through they may not fall under the class of companies specified therein in succeeding years.


Rule 3(3)
The Companies which have filed their financial statements under the earstwhile rules, namely the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011l shall continue to file their financial statements and other documents as prescribed in sub-rules (1) through they do not fall under the class of companies specified therein.

Exempted Companies:
        i.            Non-Banking Financial Companies,
      ii.            Housing Finance Companies and
    iii.            Companies engaged in the Business of Banking and Insurance Sector

Major Change:

Therefore a Company which was required to file financial statement in XBRL under previous rules but not falling under applicability limit as of now. Such Companies are required for filing of financial statement in XBRL in future.

Quick Question:

A.      A Company voluntary prepared financial statement into XBRL for some financial year. Whether such Company required preparing the financial statement into XBRL in future also?

As Per the applicability of filing of financial statement into XBRL Rules, 2017, it is not mandatory for such companies to file financial statement into XBRL in future. It can file the normal AOC-4 form. Only Companies falling under XBRL Amendment Rules, 2018 read with earlier required to file financial statement into XBRL.

B.      A Company falls under the limit of applicability of filing of financial statement into XBRL for some years. However, afterwards due to any reason, it doesn’t fall under the applicability requirement of XBRL. Whether such Company required preparing the financial statement into XBRL in future also?

As Per the applicability of filing of financial statement into XBRL amendment Rules, 2018, such Company required to file financial statement into XBRL in future years also irrespective whether falling in limit or not.

 (Author – CS Divesh Goyal, GOYAL DIVESH & ASSOCIATES Company Secretary in Practice from Delhi and can be contacted at csdiveshgoyal@gmail.com). Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, I assume no responsibility therefore. Users of this information are expected to refer to the relevant existing provisions of applicable Laws. The user of the information agrees that the information is not a professional advice and is subject to change without notice. I assume no responsibility for the consequences of use of such information. IN NO EVENT SHALL I SHALL BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM, ARISING OUT OF OR IN CONNECTION WITH THE USE OF THE INFORMATION





Comments

Popular posts from this blog

Declaration of Commencement of Business - Series 487

Vacancy Updates (Through Google Form) | Dated: 20-August-2020

Process of Conversion of Loan into Equity