What are the Superstitions about XBRL Reporting for MCA
Accuracy and timeliness in data acquisition are increasingly seen as essential factors in governance and taxation. XBRL (eXtensible Business Reporting Language) has been mandated by the MCA and various regulatory authorities across the globe. With this requirement the issuers had begun reporting in formats that is both machine and human readable, instead of submitting PDF files, giving way to consistency, efficiency and accuracy in the compliance process.
In this instance with any new technological compliance requirement, many companies have turned to outsourcing the XBRL formation to reliable XBRL experts. Relevant for both MCA and SEBI filings, organisations are always on lookout for the right partner who can afford them with the flawless reporting to be compliant.
With the risks of human error and trouble navigating the complicated points of compliance, it is now clear that most companies prefer to entrust this responsibility with experienced professionals so they are not on the wrong side of the law.
However, there are always those misanthrope who are still on the fence about the ease of this process. So, in this blog, we would like to march you through three of the most common superstitions around XBRL reporting.
Superstitions about XBRL
1: No prior knowledge of XBRL is vital if this task is outsourced
It’s not as simple as you think! Considering the process of XBRL tagging requires knowledge about the configuration of the data so that you can run the necessary checks and ensure that the information is not misrepresented.
In order to review your filing, you need to:
– Be aware of what goes into the dataset so you can check if the accuracy of the taxonomy and features selected. Basically, no one knows your requirements as well as you do!
– Ensure that the correct extension is generated, is exact, and predominantly is required to reflect your reporting intents
– Pen down what values are being stated by understanding how XBRL format transforms values
2: Overloaded teams will get some deliverance
You’ve outsourced your XBRL tagging, but what about the authorized accountability? Unfortunately, you and your company are responsible for what you submit. Exactness of the report, representation of the numbers, and the level of compliance are all your responsibility and not the vendors.
Therefore, you will still need a compact workforce to comprehend and review the quality of the work. The task of tagging can be completed by experienced professionals for you.
However, once that is done, your team will still have the essential responsibility to justify tagging decisions and act on changes, if required.
3: XBRL tagging is an enormous task
Yes, this may be true. But not entirely. All you need is the right solution and an experienced team of experts to perform your own XBRL mapping, modelling, tagging, and filing. This gives you complete control over the entire process and sticks to deadlines too.
As you know that outsourcing your XBRL process is not really a breeze, you may now wonder how you can streamline the existing reporting process to handle the process of XBRL tagging. Well, you have to keep in mind that you will need:
- A dedicated team of qualified professionals who are specialists in XBRL tagging and associated processes
- Unlimited round of edits until an error-free report is prepared and submitted
- A clear review and monitoring process that ensures accuracy while dealing with any possibility of errors
In summary, outsourcing is not out of the question. You can recourse to this option to ensure that you are compliant with the MCA’s rules and regulations.
A dependable service provider can turnaround your XBRL files quickly without errors and ease the pressure of last-minute compliance.
DataTracks, a global leader in compliance report preparation, offers an efficient solution to streamline the XBRL reporting process. To know more, speak to a XBRL expert on +91 44 4208 1719 or drop us a line at email@example.com