XBRL (Extensible Business Reporting Language)
Gone are the days when companies filed annual reports and financials in PDFs or paper formats. Today, business reporting is smarter, faster, and more transparent — thanks to XBRL (Extensible Business Reporting Language).
XBRL stands for Extensible Business Reporting Language — a global, XML-based standard for electronic communication of business and financial data.
Think of it as the “language” that computers use to read, exchange, and analyze financial information — without human error or misinterpretation.
In India, the Ministry of Corporate Affairs (MCA) has made XBRL filing mandatory for certain classes of companies to enhance accuracy, uniformity, and transparency in financial reporting.
Every company registered under the Companies Act, 2013 or Limited Liability Partnership Act, 2008 must submit annual returns and financial statements to the Registrar of Companies (ROC), maintained by the Ministry of Corporate Affairs (MCA).
Who Needs to File in XBRL Format:
- All companies listed on any stock exchange in India and their subsidiaries (Indian or foreign).
- All companies having paid-up capital ≥ ₹5 crore.
- All companies having turnover ≥ ₹100 crore.
All companies required to prepare financial statements as per Companies (Indian Accounting Standards) Rules, 2015 (Ind AS).
Documents Required for XBRL Filing:
- Audited Financial Statements (Balance Sheet, Profit & Loss A/c, Cash Flow, Notes to Accounts)
- Director’s Report & Auditor’s Report
- Significant Accounting Policies
- Corporate Identification Number (CIN) and company master details
- Details of Share Capital and Reserves
- Digital Signature Certificate (DSC) of Director/Professional
- Consolidated financial statements
- Statement of subsidiaries under Section 129 of the Companies Act, 2013
FAQs
XBRL is not software — it’s a reporting format. You need XBRL-compatible software to create and tag financial data as per MCA taxonomy.
A Practicing Chartered Accountant, Company Secretary, or Cost Accountant must verify and digitally sign the XBRL report.
Yes, if your company prepares consolidated accounts, both standalone and consolidated statements must be filed in XBRL.
Yes. AOC-4 is for companies not required to file in XBRL format; AOC-4 (XBRL) is specifically for those under XBRL mandate.
Not yet. Currently, XBRL applies to specific companies only, not LLPs, unless the MCA extends the requirement.
Only if they meet the threshold of ₹5 crore paid-up capital or ₹100 crore turnover.
Only audited financials can be converted and filed in XBRL format.