CS Divesh Goyal

Numerous proficient persons are mystified about the applicability of XBRL (Filing of Documents and Forms in Extensible Business Reporting Language). MCA has issued 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.

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:-

(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 are required to prepare their financial statements in accordance with Companies (Indian Accounting Standards) Rules, 2015:

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:

In XBRL Rules 2015 first three categories of applicability of XBRL was same. However, there was one more category i.e. “all companies which were hitherto covered under the Companies (Filing of Documents and Forms in Extensible Business Reporting Language) Rules, 2011”.

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 exempted for filing of financial statement in XBRL under Amendment Rules, 2017.

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, 2017 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 Rules, 2017, only companies falling under the applicability criteria required to file financial statement into XBRL. For the purpose of checking of applicability of XBRL on the Company current financial statement shall be considered.

Example: For checking of applicability of XBRL for the F.Y. 2016-17 Financial statement as on 31.03.2017 shall be considered.

(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

(Author can be reached at csdiveshgoyal@gmail.com )

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