Chartered Club Of India

All about XBRL

By GURVINDER SINGH

INTRODUCTION

XML stands for extensible markup language. Extensible means language that can be extended by anyone who wants to create additional ways to use it. Markup means that XML’s primary task is to give definition to text and symbols. Language means that XML is a method of presenting information in understandable formats.

XBRL was created with a view to develop a consistent method of reporting business event information. The initial goal of XBRL is to provide an XML-based framework that the global business information supply chain will use to create, exchange, and analyze financial reporting information.

HOW DATA DISPLAY IN XML FORMAT

XML-Coded data:

New England

02312000

Wal-Mart

XBRL in INDIA

A separate company, under section 25 has been created, to manage the operations of XBRL India. The main objectives of XBRL India are:

To create awareness about XBRL in India

To develop and maintain Indian Taxonomies

To help companies, adopt and implement XBRL.

XBRL in MCA

Ministry of Corporate Affairs vide its General Circular No. 09/2011 dated 31.03.2011 mandated certain class of Companies who are covered under Phase I. Following class of companies are required to file their Balance Sheet and Profit and Loss Account in XBRL Format:-

Listed Companies and their subsidiaries;

Companies having paid up capital of Rs. 5 Crores and above;

Companies having turnover of Rs. 100 Crores and above.

However, banking, insurance, power Companies and NBFCs are exempt for XBRL Filing in Phase I.

Time Limit :-

To provide adequate time and flexibility to become familiar with the new Format, time limit has been extended to 30th December, 2011.

All the above entities are allowed to file their balance sheet upto 30/12/2011 or within 60 days of due date of Filling.

Steps for Creation and filling of Instance Documents

Companies covered under First Phase are required to file their Instance Document created according to the xbrl Rules after converting the same in .xml file. MCA has declared Taxonomy for the purpose of XBRL. Taxonomies for Indian companies are developed based on the requirements of:

Schedule VI of Companies Act,

Accounting Standards, issued by ICAI

SEBI Listing requirements.

Taxonomy can be referred as an electronic dictionary of the reporting concepts. Taxonomy consists of all the data definitions, the basic XBRL properties and the interrelationships amongst the concepts. It includes terms such as net income, EPS, cash, etc. Each term has specific attributes that help define it, including label and definition and potentially references. Taxonomies may represent hundreds or even thousands of individual business reporting concepts, mathematical and definitional relationships among them, along with text labels in multiple languages, references to authoritative literature, and information about how to display each concept to a user.

Instance document is a business report in an electronic format created according to the rules of XBRL. It contains facts that are defined by the elements in the taxonomy it refers to, together with their values and an explanation of the context in which they are placed. XBRL Instances contain the reported data with their values and “contexts”. Instance document must be linked to at least one taxonomy, which defines the contexts, labels or references.

Creation of Instance Document is nothing but mapping of company’s data into XBRL Taxonomy. The Process used for mapping the Data into Taxonomy is known as Tagging. Tagging is just a task to convert the language used in Financial Statement into the language used in Taxonomy. Once the tagging of financial statement elements with the published taxonomy elements is done, the next step is to create the instance document.

Separate instance documents need to be created for the following:

Stand Alone Balance sheet of the company

Stand Alone Profit and Loss Account of the company

Consolidated Balance sheet of the company

Consolidated Profit and Loss Account of the company

The instance document should contain the financial information for both the current as well as the previous financial year. Consolidated balance sheet and Profit and Loss instance documents to be created only in case the same is applicable to the company.

VALIDATION OF FILE USING MCA VALIDATION TOOL

After successfully generating .xml file, the next step is to validate the file using MCA Validation Tool provided on MCA website. If errors occur then rectify the same in instance Document and try to validate the same again.

PRESCRUTINY OF FILE

After validating, the File is need to be Prescrutinize with the help of MCA Validation Tool. If no error occurs then Message displayed “No Prescrutiny errors occurred”. The File is ready to be uploaded.

E Forms

The Prescrutinized .XML file can be uploaded to the MCA site as an attachment with the eForm23ACXBRL and eForm23ACAXBRL after filling the same.

Authentication of XBRL Document:-

Earlier it was decided that only Statutory Auditors will certify the XBRL document. However, it was further clarified that CA / CS/ CWA in whole time practice can certify XBRL documents.

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Manish Negi

Restoration Of Service Tax Codes

Negative List based comprehensive approach to taxation of services came into effect from the first day of July, 2012. Accounting code for the purpose of payment of service tax under the Negative List approach [“All Taxable Services” – 00441089] was prescribed vide Circular 161/12/2012 dated 6th July, 2012.
Subsequent to the issuance of the Circular, suggestions were received from the field formations that the service specific old accounting codes should be restored, for the purpose of statistical analysis; also it was suggested that list of descriptions of services should be provided to the taxpayers for obtaining registration. These suggestions were examined and a decision has been taken to restore the service specific accounting codes. Accordingly, a list of 120 descriptions of services for the purpose of registration and accounting codes corresponding to each description of service for payment of tax is provided in the annexure to this Circular.
Descriptions of taxable services given in the annexure are solely for the purpose of statistical analysis. On the advice of the office of the C & AG, a specific sub-head has been created for payment of “penalty” under various descriptions of services. Henceforth, the sub-head “other receipts” is meant only for payment of interest payable on delayed payment of service tax. Accounting Codes under the sub-head “deduct refunds” is not to be used by the taxpayers, as it is meant for use by the field formations while allowing refund of tax.
Registrations obtained under the positive list approach continue to be valid. New taxpayers can obtain registrations by selecting the relevant description/s from among the list of 120 descriptions of services given in the Annexure. Where registrations have been obtained under the description ‘All Taxable Services’, the taxpayer should file amendment application online in ACES and opt for relevant description/s from the list of 120 descriptions of services given in the Annexure. If any applications for amendment of ST-1 are pending with field formations, seeking the description ‘all taxable services’, such amendment may not be necessary and the officers in the field formations may provide necessary guidance to the taxpayers in this regard. Directorate General of Systems will be making necessary arrangements for display of the list of 120 descriptions of services and their corresponding Accounting Codes in Form ST-1 and Form ST-2 as may be necessary.

Click here to view complete Circular
Click here to download new codes of Service Tax

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Road Map of CA Course

Chartered Accountancy is a challenging profession that offers practice or job opportunities in the areas of accounting, auditing, corporate finance, project evaluation, company and other business laws, taxation and corporate governance. The Chartered Accountancy Course and Profession in India is regulated by The Institute of Chartered Accountants of India (ICAI), New Delhi.

C. A. Course comprises of 3 Levels

Common Proficiency Test (CPT)
Integrated Professional Competence Course (IPCC)
C. A. Final

Under the existing chartered accountancy scheme of education, training and examination, the requirements for becoming a chartered accountant are as follows:

Register for CPT:
Register with the Institute of Chartered Accountants of India (ICAI) for Common Proficiency Test (CPT) after passing class 10th examination.

Appear and Pass CPT:
Appear for CPT examination after appearing in 10+2 examination and after completion of period of at least 60 days from the date of registration for CPT with the Board of Studies as on the first day of the month in which examination is to be held, viz., students registered on or before 1st April/1st October will be eligible to appear in June/December examination, as the case may be. However,

Register for IPCC:
Register for Integrated Professional Competence Course (IPCC). Candidate should pass both CPT and 10+2 before registering for Integrated Professional Competence Course (IPCC). Registration for IPCC should be done 9 months before the first day of the month in which exam is held. IPCC has total 7 papers. Group I is composed of four papers and Group II is composed of three papers. Passing Group I is necessary for commencing Articleship.

Orientation and ITT:
Successfully complete Orientation Course of one week spanning 35 hours and covering topics, such as, personality development, communication skills, office procedure, business environment, general commercial knowledge, etc. Successfully complete 100 hours Information Technology Training (ITT). Orientation and ITT are to be completed before registering for Articleship.

Appear and Pass IPCC Group I Exam:
Appear and pass Group I or Both Groups of Integrated Professional Competence Examination (IPCE).

Register for Articleship:
Register as Articled Assistant for a period of 3 years with Practicing Chartered Accountant, on passing either Group I or both the Groups of IPCE.

Appear and Pass IPCC Group II Exam:
Pass Group II of IPCE during Articleship if not passed earlier.

Register for CA Final Course:
Register for CA Final Course on passing both groups of IPCC.

Appear and Pass CA Final Exam:
Appear in CA Final Examination during last 6 months of 3 years of articled training. Pass Group I as well as Group II of CA Final Examination.

Complete Articleship:
Complete 3 years period of articled training.

GMCS:
Successfully complete the Course on General Management and Communication Skills (15 days).

Membership:
Enroll as a member of ICAI and designate as “Chartered Accountant”.

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How to improve English speaking skills?

By Deepak Kumar Sharma

The main problem faced while trying to speak in English is that if we don't live in an English-speaking atmosphere and don't have friends or family to speak English with, we can’t practice English speaking skills?

There are many occasions where we need to talk or express ourselves in English. They may be Group discussion, Personal interviews, seminar or meeting organized by institutes or corporate or simply discussing with client or associate. English is almost a mandatory language to communicate or take part in these activities. It is more difficult for a non- English background person to face this kind of situation. English is becoming a basic need now a day. Whatever you work on internet, computer, mobile or any document; mostly they use English as their language. So the question is “Do you find it difficult to take command over this foreign language?” If your answer is yes; then here, we will work on it and figure out some solutions.

Though I am novice to speak English but still I am trying to help the people who want to speak in English with this article. Many people can understand the other person’s views in English as like in Hindi but unable to express themselves in English. Every person in this world has a language as his default/native language. If they have command on one language; then they can surely achieve command on another language. . There are many people in this world who have command on more than three languages. But remember that one’s native language is his root, so he doesn’t ignore its importance while learning other language. 3 Basic uses of a language are 1. Reading 2. Writing and 3. Speaking. At this moment, I know that you can read and understand English very well because you are in the middle of this article. Writing in English is not a tough task if you know basic grammar. So what is left is English speaking. Many of my friends joined English speaking classes but still they feel it difficult to speak English with fluency. So what is the thing one needs most to speak a language. Most of us will reply “knowledge of proper grammar”. Well, I am not agree with them. I have a very little knowledge of ‘Hindi grammar’ but I can speak Hindi very well. Rich vocabulary is also not a correct answer because I never used a Hindi grammar as well in order to speak Hindi. And vocabulary is mainly belongs to writing part of a language than speaking. Speaking is little different from writing. If we know how to make simple sentences using common words, it is enough to start speaking in English.

What are the main difficulties which stops us to speak in English? First obstacle is that we want to start it with perfection. Remember we can’t get perfection in the beginning. Learning 10000 new words will not help you as much as practicing 500 common words of conversation in English, so one has to become very good at it. He should make a list of frequently used words and sentences in English and should try to pronounciate them frequently. Sit in front of a mirror and answer some interview like questions at your own. For Example, Tell me something about yourself; Share your views on some subject chosen by you. You can also practice like newsreader from English newspaper. Whatever method you apply, practice is the essence. Perfection comes with a lot of practice. Even I believe that there is no such thing like perfection. There is only a cycle of making mistakes and improvements. A Man can never be perfect because perfection is a journey and not a destination.

Now recall; the native language you speak, when and where did you learn this? Please recall that before reading further. Okay; you will find that environment plays an important role in learning a language. Mostly we learn to speak a language at home as well as school. Our friends, family members and relatives are our teachers to speak a language. Now if you want to speak another language. Follow the same procedure. Make some friends who speak English. There are English medium schools everywhere in India. India is the second largest country with people who speak English. Start conversation with anybody. One funny suggestion, call your customers care representative of mobile service operator (If it’s free); choose language option as English and start chatting. Don’t hesitate. He doesn’t know you. I tried it many time but I initiated in English and ended with Hindi. Now some better practical solutions. If it is not practical for you at this moment, do practice at home. Purchase some CD/ DVDs of English movies with subtitles, songs with lyrics, speeches etc. and repeat them yourself. Learn their speaking tone and pronunciation of words. Read English news paper and books loudly, listen and record English news, interviews on TV, radio and try to repeat them in same way. Also have a good dictionary and grammar like oxford to enrich your knowledge and confidence. Knowledge is power, so enhance it. I often visit some good knowledge sites in English like Wikipedia and other. You can visit sites of your interest or simply read good English material, join a forum, chat with friends (skype,mobile, computer etc.)about topic of their interest.

In nutshell, keep in touch with English as more as possible and try it on your own each day. Attend some Group discussions and personal interviews in English held in your area by any institute or company. If possible, join some club group etc., where members speak English. You may have fear in the beginning but remember “There is victory beyond the fear” I do practice with my nephew and niece who go to an English medium school and who are less than ten years old. I must admit that new generation is more advanced than me in spite of age difference. Reason is academic education and fast changing technology world. Computer and cable TV has made them more advanced.

You can’t learn swimming without landing in water, so just start speaking, no matters correct or incorrect. There will be many people to correct you or accept you. There are more than a million words in English language, but you need only few thousand words to speak it. On the other hand, never think that knowledge of grammar and rich vocabulary are basic needs to speak English. Let me tell you that I choose English as a study medium just 2 years ago. My grammar knowledge of English was good from school days in spite of being a Hindi medium student. But it didn’t help me to speak English. Even it make difficult for me to speak in English.

Lastly I would say that never under estimate yourself in the beginning because nobody is perfect. Even English teachers make mistakes at times. I have met many people who speak incorrect English (from the grammar point of view) but with confidence. So confidence is the key to achieve success and it comes with repetition. I am not supporting their mistakes but admiring them because at least they had courage to start. I hope at least a few people will inspire from this article and start to speak English.

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Manish Negi

Case Law Updates

Interim order passed without affording opportunity of hearing to directors amounts to violation of principles of natural justice, matter remanded : K. P. S. Selvaraaj v. Selvaraaj Tex P. Ltd. (Mad) p. 149
CLB has no jurisdiction to look into adequacy of consideration in respect of transfer of shares during pendency of proceedings : ABA Builders Ltd. v. Smt. Anjula Nagpal (Cal) p. 165
Claim acknowledged after expiration of period of limitation is barred by limitation and legally unenforceable : Orders passed on interlocutory application not to operate as res judicata : Michael Hart v. Ninestars Information Technologies Ltd. (Mad) p. 178
Where no infirmity in conduct of sale and no case of fraud, settled sale not to be unsettled : V. Thirumurugan v. Rajsriya Automobile Industries P. Ltd. (Mad) p. 186
Grant of leave by court not condition precedent to filing of suit, permission relates back to date of institution of suit : H. P. State Electricity Board v. Shivalik Casting P. Ltd. p. 203
Civil court has jurisdiction on matters not specifically said to fall within jurisdiction of company court : Matters arising out of memorandum of understanding, not company matter : K. Saravanan v. Cosmopolis Properties P. Ltd. (Mad) p. 210

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Further Extention Of Due Date Of Filing E-Forms 23AC and 23ACA

Due date of filing of e-forms 23AC(Non-XBRL) and 23ACA (Non XBRL) as per new schedule VI (applicable for the accounting year commencing on or after 1.4.2011 ) has been extended upto 24.11.2012 for Companies holding AGM or whose due date for holding AGM is on or after 21.09.2012.

Such companies can now file these eForms without any additional fees upto 24.11.2012 or due date of filing, which ever is later.

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Clarification By ICAI On Verification Of Answer Books

In terms of the provisions of Regulation 39 (4) of the Chartered Accountants Regulations, 1988, the candidates of an examination conducted by the Institute have the facility to apply for verification of their answer books as to whether their answers in any particular paper or papers have been examined and marked. Similarly, they also have the facility to apply for inspection and/or have a certified copy of their answer books in terms of the related procedure as approved by the Council of the Institute. The answer books involving applications received seeking verification,inspection and/or certified copy, as also the applications received under the Right to Information Act, 2005, in relation to a given examination are retained for a maximum period of one year from the date of declaration of results of relevant examination. As regards answer books involving matters which are sub judice [(i.e. involving litigation (either within the Institute or outside the Institute such as Hon’ble Courts of judicature, Central Information Commission or other similar forums)], the same are retained till the conclusion of the litigation proceedings in such fora. All other answer books in relation to a given examination are retained for a period of four months (120) days from the date of declaration of result of the relevant examination. The above is for the information of all concerned.

Click here to view announcement

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Manish Negi