This year the xbrl return filing is likely to be extended to a bigger range of companies…Not sure whether and if it will happen, but that is what one hears.
Last year was the first year of xbrl filing and year ending March 2012 will be the second year. Tagging of the 3 financial documents – the P&L a/c, B/Sheet and Cash flow is quite easy to do, but maybe a little cumbersome.
HOW can a company make tagging even more easy than last year?
Simple. Choose your nomenclature of accounting terms from the taxonomy. For example say ‘Paid up Equity Share Capital’ if that is what the taxonomy says. Say ‘Total Funds’ instead of saying ‘Shareholders Funds’ if the taxonomy demands that. Once you use the same nomenclature as the taxonomy, it is possible that some of the software may be able to do ‘Intelligent mapping’. In this the software will do most of the tagging, and one senior person can quickly fill in the blanks if any.
What about the taxonomy that will be applicable for the year ended March 2012?
It should be out soon and I guess the work would have started. The draft taxonomy is already out on the MCA website, and I can assure you, it is surely MORE complicated as compared to the previous year. The complications will mean more time, more skill and hey professionals more fees too!
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