panies which are nverging with the international financial reporting standards (IFRS) from April 1, 2011 will also have to incur an additional st of mplying with the advanced reporting language tool, XBRL (extensible business reporting language). The ministry of rporate affairs has decided to implement XBRL for all mpanies in India from 2011. This would mean that IFRS nvergent mpanies along with the non-nvergent mpanies will have to start filing their documents in the XBRL format. XBRL allows the users of financial information to electronically retrieve data with greater assurance of auracy.

At present, the 100 mpanies are already using the XBRL format for financial reporting. In US, the house had approved legislation to follow XBRL for ernment firms which have used the tax payer money for bailout. A senior MCA official told FE, “panies will have to start following XBRL from 2011 onwards wherein both the IFRS nvergent mpanies and also the non-nvergent mpanies will have to follow this reporting tool for filing their financial documents”.

The official further said XBRL would ensure that financial data is filed in a standard format and is retrievable electronically. This would also facilitate detailed analysis of the underlying data using standard data analysis tools. The XBRL is a way of electronic mmunication of business and financial data and is of immense utility to the capital markets and the investing mmunity. Acrding to experts, XBRL will involve some initial nversion sts for mpanies but the long-term benefits for investors and the capital markets would be significant.

Jamil Khatri, head of acunting advisory services, KPMG said, “XBRL filings would only involve the initial nversion st but since it has so many long-term benefits, it would be a good move”.

XBRL would be beneficial for those who llect business data, including ernments, regulators, stock exchanges, financial information mpanies, enomic agencies and the likes and those who produce or use it including acuntants, auditors, mpany managers, financial analysts, investors and creditors. XBRL can also immediately nfirm the financial data, highlighting errors and gaps which can immediately be addressed. It also helps the user in selecting and processing the data for re-use. ICAI nstituted the XBRL group in 2007 for undertaking the development and promotion of XBRL in India.