Sebi to introduce user-friendly language XBRL
Market regulator Sebi is working on a user-friendly online language called XBRL (Extensible Business Reporting Language) which will enable the user to utilise the information in the right manner.
By PTI |
NEW DELHI: Market regulator Sebi is working on a user-friendly online language called XBRL (Extensible Business Reporting Language) which will enable the user to utilise the information in the right manner.
XBRL taxonomy is a dictionary of data definition that incorporates the mechanism for describing, naming and classifying items of the business information basically financial statement in a document.
"We are in conversation with the exchanges as well as some of the issuers to shift to a new language of XBRL which, we believe, is more user-friendly language," SEBI Chairman M Damodaran told PHDCCI.
Individual business concepts such as cash flow, depreciation and share capital can be represented in the taxonomy.
If we move to the language and we also simultaneously ensure that we address the conversion between our accounting standard and IFRS (International Financial Reporting Standard) we would have made a significant progress in the one part of the securities market, Domdaran said.
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The recently reconstituted 18-member committee on Disclosure and Accounting Standard is also looking in to the matter. The Institute of Chartered Accountants of India is also part of the committee and is looking for the role of facilitator of the language in India.
"The Institute is contemplating to set up Task Force for developing taxonomy for promoting the language," ICAI President T N Manoharan told media.
First a consensus has to emerge among all the regulators, stock exchanges and other entities on the issue which will take some time, he said, adding initial process has just started in this regard. Once the language is in place one can understand and harmonise the financial statement very easily, he said.
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Manoharan said, simple financial analysis like debt equity ratios of a company or companies can be done with a click of button. Currently 11 countries across the world are using the language, he said.In an attempt to reduce compliance cost, SEBI was developing a single platform for e-filing of corporate disclosures. At present, corporates have to file separately on BSE, NSE and Sebi.
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By having a single platform, there will be no dilution of compliance while at the same time reducing the cost involved in it, Damodaran said.Download
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