The Ministry of Corporate Affairs vide its circular no. 8/2012 dt. 10.05.2012 mandate the cost auditors and the companies to file Cost Audit Reports (Form-I) and Compliance Reports (Form-A) for the year 2011-12 onwards (including the overdue reports relating to any previous year) in XBRL mode.
As the XBRL filing is about to start, the professionals and corporate are more of a busy in selecting a correct XBRL conversion tool or their XBRL outsourcing partner. Now before our professional fellows especially Company Secretaries, Chartered Accountants and Cost Accountants finalise their choices, I think they must once go through the below checklist. I suppose, after reconciling their choices with the below checklist, they may be made to reshuffle their decisions.
There are number of XBRL conversion tools are available in market, so are the XBRL conversion service providers on outsourcing basis. The software are available in the market ranging from Rs.3,000/- to Rs.1,00,000/-, however each of these software has its own utility and reliability value. Let us ease between this two, i.e. whether to go for XBRL conversion tool or outsource your XBRL work.
Why to buy an XBRL conversion tool?
- Company may convert its financial statements into XBRL, in house,
- There are no security issues with respect to the revealing the financial data to the third party,
- A capital expenditure for the company,
- Company may renew & update it on year on year basis ,
- Need not to depend on the delays which may be made by the outsourcing partner,
Why to outsource XBRL conversion work?
- The conversion services are generally managed by professionals,
- The company need not engage its staff in the work, neither need to train them,
- XBRL Outsourcing Services are more cost efficient,
- The company personnel may concentrate on core concerned areas,
- Need not invest in heavy cost of XBRL software.
Dos and Don’ts while selecting your XBRL Partner
- Do not outsource conversion work to non professional company,
- Certification of the Form 23AC & 23ACA shall preferably obtained from the professional who had done the conversion and tagging process,
- Do check the past experience of the firm,
- Finalize all in cost with the firm, some companies charge separately for validation and pre scrutiny of the XBRL file,
- Ask for PDF replica of the XBRL file for review the data, if there are any short comings ask your XBRL Partner to make the required changes,
- Depending upon your company and complexity in conversion, the market fees for the XBRL conversion services may range between Rs.10,000/- to lacs of rupees,
- Last but not the list, confirm whether your proposed XBRL Partner is not using the auto tagging software, which generally generates a faulty XBRL file.
As the XBRL filing is about to start, the professionals and corporate are more of a busy in selecting a correct XBRL conversion tool or their XBRL outsourcing partner. Now before our professional fellows especially Company Secretaries, Chartered Accountants and Cost Accountants finalise their choices, I think they must once go through the below checklist. I suppose, after reconciling their choices with the below checklist, they may be made to reshuffle their decisions.
There are number of XBRL conversion tools are available in market, so are the XBRL conversion service providers on outsourcing basis. The software are available in the market ranging from Rs.3,000/- to Rs.1,00,000/-, however each of these software has its own utility and reliability value. Let us ease between this two, i.e. whether to go for XBRL conversion tool or outsource your XBRL work.
Why to buy an XBRL conversion tool?
- Company may convert its financial statements into XBRL, in house,
- There are no security issues with respect to the revealing the financial data to the third party,
- A capital expenditure for the company,
- Company may renew & update it on year on year basis ,
- Need not to depend on the delays which may be made by the outsourcing partner,
Why to outsource XBRL conversion work?
- The conversion services are generally managed by professionals,
- The company need not engage its staff in the work, neither need to train them,
- XBRL Outsourcing Services are more cost efficient,
- The company personnel may concentrate on core concerned areas,
- Need not invest in heavy cost of XBRL software.
Dos and Don’ts while selecting your XBRL Partner
- Do not outsource conversion work to non professional company,
- Certification of the Form 23AC & 23ACA shall preferably obtained from the professional who had done the conversion and tagging process,
- Do check the past experience of the firm,
- Finalize all in cost with the firm, some companies charge separately for validation and pre scrutiny of the XBRL file,
- Ask for PDF replica of the XBRL file for review the data, if there are any short comings ask your XBRL Partner to make the required changes,
- Depending upon your company and complexity in conversion, the market fees for the XBRL conversion services may range between Rs.10,000/- to lacs of rupees,
- Last but not the list, confirm whether your proposed XBRL Partner is not using the auto tagging software, which generally generates a faulty XBRL file.
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