XBRL in India “ Coordination among Regulators
As this goes to press, two major regulators “ Ministry of Corporate Affairs (MCA) and Reserve Bank of India (RBI) have already implemented XBRL technology for report collection from companies and financial institutions. More such regulating regulators are on-course to implement XBRL in India.
When several regulators collect data from the same reporting organization, it is important to reduce the duplicate reporting burden across regulators. XBRL technology makes it not just easy to share the data across regulators; it also makes for effective and accurate consumption of the data by the regulators.
In its recent report, RBI has made its expectations clear that it is important to have clarity on the common requirements of data elements for various regulators and expects close co-ordination among the regulators. RBI has also hinted at having a common repository for a financial database, accessible by all the regulators.
In India, MCA is already collecting XBRL reports from non-financial companies with paid-up capital of more than Rs. 5 crores or turnover of more than Rs. 100 crores since 2011. RBI has implemented XBRL in Phase I for Capital Adequacy Returns. As part of Phase II, RBI has deployed 50 of the planned 58 returns for User Acceptance Testing (UAT).
In the future, the Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDA) and Income Tax (IT) departments are likely to implement XBRL for their parish. The time has come therefore to now identify the common reporting components across regulators, and eliminate duplicate reporting on the reporting entities. In the UK, Companies House and the Tax regulators have agreed upon a Joint Filing program that reduces the burden on the companies from filing the reports twice in XBRL format.
The question in India is “ who will initiate these Joint Filing programs and who will undertake the responsibility to maintain the common repository. One has to wait and watch for an answer.
How DataTracks can help you?
DataTracks is a global leader in preparation of financial statements in XBRL and iXBRL formats for filing with regulators. With a track record of over 10 years, DataTracks prepares more than 12,000 XBRL statements annually for filing with regulators such as SEC in the United States, HMRC in the United Kingdom, Revenue in Ireland, MCA in India and ACRA in Singapore. DataTracks provides world-class services with its team of certified accountants experienced in US GAAP, UK GAAP, India GAAP and IFRS.
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