XBRL steps to generate Financial Statements & common mistakes

An summary of the XBRL steps for filing a financial statement, as well as common errors.

In this post, we will look into the XBRL steps for filing a financial statement and the common mistakes you can see while generating an instance document.

We will cover the following topics in this blog post:

Steps for filing Financial Statements in XBRL mode

  • You should create an XBRL instance document.
  • Then launch the validation tool and load the instance document.
  • Validate and review the document you have created.
  • Next, convert it to pdf format and verify your contents of the instance document (This step is to ensure that you can view the information you have entered in the instance document).
  • Then attach your document to the Form 23AC-XBRL and also with Form 23ACA-XBRL.

Finally, you can Submit your Form 23AC-XBRL and Form 23ACA-XBRL on the MCA portal.

Important areas you to keep in mind:

  1. While the creation process of your XBRL documents.
  2. Validating of the instance document you have generated.

Common mistakes in XBRL

Now let us see what are the common mistakes you may come across while creating an instance document.

Missing mandatory fields

Your document can miss any one of the following details:

  1. Details of the cost audit records.
  2. If the money raised from public offering during the year.
  3. The breakup of the equity capital.
  4. Whether a company is a subsidiary company or not.

Conditional mandatory cases

  1. If any Non-current investments/Current investments, your document require the “Aggregate amount of quoted investments” and “Aggregate amount of unquoted investments”.

In Notes –Share capital, for “whether there are any shareholders holding more than 5% shares in the company” is selected “Yes”, but no details are found.

Other mistakes found

  • In principal products/services, ITC codes should be given as per the ‘ITC HS Codes’ and ‘NPSC Codes’ set by the Ministry of Corporate Affairs.
  • If you have entered values for the current year then you have to enter for the previous year too.
  • The duplication of axis entries.
  • Notes setting –for applicability of particular notes to an instance document.
  • For ‘Revenue from products and service’, you must provide the details of ‘Domestic turnover’ as well as ‘Export turnover’.
  • On importing details from the previous year (directors details, related party details etc) only the details will be imported but the axis will be blank (no axis concept in PY). So, your details will be present without the Axis, this will give you errors in the validation.
  • In “Notes Share capital” if only one type of equity share capital exists, then in the “Disclosure of shareholding more than 5% in the company (Table)”
    Class of share capital [Axis] Equity share 1[Member] Equity share 1[Member]Name of shareholder [Axis] Shareholder 1[Member] Shareholder 2[Member]
  • Directors report is mandatory to have the following:
  1. The details of energy conservation.
  2. The foreign earnings and outgo.
  3. Details of the employee as per section 217.
  4. Directors responsibility statement.
  • Expose the change in the accounting policies –The change in the accounting policies used for the preparation of financial statements are important.

The reason for changes in accounting policy and the effect of that change in the financial statements should be referred.

  • At least three directors details in case of Public company.
  • The DIN (Director Identification Number) should be 8 digits and your name should be based on DIN.
  • If the company is a subsidiary company, under ‘Notes – Share Capital’ we need to give ‘Shares held by holding a company / ultimate holding company’.
  • The“Segments” under Notes option– If a company has segments, they have to submit the details of primary and secondary reportable segments assets/ liabilities and results.
  • Mandatory attachments
  1. In Notes – Revenue (in case of Standalone).
  2. Notes – Employee benefits (in case of Standalone).

Notes – Accounting policies.

For more information refer to our other blog: A brief introduction to XBRL- with essential concepts

We have come to an end of this blog on the XBRL steps for filing a financial statement and the common mistakes while generating an instance document.

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