In what uld me as a major blow to the big four acunting firms, mpanies filing their financial rerds and returns in XBRL —(extensible business reporting language)—a mputer language for reporting financial statements—may be exempted from getting a certification on the same from a qualified audit firm, as the norm is at present.

The ministry of rporate affairs (MCA) has decided that certification from a qualified acunting firm would not be mandatory, instead, only an authentication from a registered chartered acunting firm will be enough.

This will help smaller mpanies as only the big four global acunting firms—KPMG, Ernst&Young, PwC and Deloitte—at present are qualified to issue certificates who charge a very high fee.

However, there uld be a further delay in the implementation of XBRL as MCA has found faults with the current taxonomy developed by the Institute of Chartered Acuntants of India, (ICAI). Taxonomy is a glossary of financial terms used in XBRL. It has to be tested for its validation using certain tools.

MCA wants to switch to XBRL format as data representation in that format is more precise and gives mpanies less spe to manipulate numbers.

The technology offers greater level of transparency, auracy and efficiency.

“The use of XBRL would rce errors in financial data, the move would significantly bring down sts for mpanies ” an official source familiar with the development told Hindustan Times on ndition of anonymity.