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The Centre plans to ask statutory auditors of companies to certify the correctness of accounts when they are converted into XBRL mode and filed with the corporate affairs ministry. India Inc is however not in favour of any such move as it would add to their compliance costs.
By a circular issued in early June, the Corporate Affairs Ministry has made it mandatory for companies to file financial statements for the year 2010-11 and onwards using XBRL (eXtensible Business Reporting Language).
XBRL is a ‘digital’ language that has been developed to provide a common, electronic format for business and financial reporting.
"Accounts are audited by chartered accountants. We have taken a stand that statutory auditors will certify the correctness of accounts when it is converted into XBRL mode. The Managing Director will always say I am not a technical man and that I have appointed a chartered accountant to be the statutory auditor, who will be responsible for it", Mr E Selvaraj, Director of inspections and investigations at the Corporate Affairs ministry said at a CII event on XBRL here.
All listed companies in India and their Indian subsidiaries; all companies having paid-up capital of Rs 5 crore and above and all companies having turnover of Rs 100 crore and above are required to file XBRL formation information for the year 2010-11 by September 30 this year. Exceptions have been made for banking, insurance and power companies, and NBFCs.
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