The implementation of the new financial reporting format, XBRL, will help ensure better transparency in accounting disclosures made by companies, a government official said today.
The Ministry of Corporate Affairs has directed companies to provide financial statements in the eXtensible Business Reporting Language (XBRL) format, replacing the traditional practice of giving such information in the PDF format.
“XBRL system will help in ensuring transparency when it comes to financial disclosures made by companies,” Pankaj Srivastava, Director at the Ministry of Corporate Affairs, said here.
He was participating in a seminar organised by industry body PHD Chamber on ‘Revised Schedule VI of the Companies Act, 1956 and XBRL Taxonomy’
The last date for companies to file financial statements in XBRL format for financial years starting on or after April 2011 is November 15 this year or 30 days from the date of their Annual General Meeting.
“XBRL and revised Schedule VI are two things that will ensure transparency in financial disclosures made by companies,” Srivastava said.
Schedule VI of the Companies Act pertains to preparation and presentation of financial accounts such as balance sheet.
According to him, Schedule VI provides for minimum disclosure requirements. It brings transparency and flexibility, among others.