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CA Final · Financial Reporting · Accounting and Technology

Sarvam Fintech Ltd. is preparing financial statements under Ind AS and runs XBRL tagging of its reported data. The Finance Controller states that XBRL tags are applied to the financial statements, which change how items are recognised and measured. Which statement about XBRL is correct?

XBRL is a standardised markup language that tags reported financial data so that machines can read, exchange and compare it. It does not alter how Ind AS recognises or measures items, and it does not replace notes or disclosures; it only affects the electronic presentation of already prepared information.

  1. AXBRL tagging changes the recognition and measurement of items to match the taxonomy
  2. BXBRL is a standard format that tags reported data so it can be read and compared by machines, without altering the accounting recognition or measurementCorrect
  3. CXBRL replaces the need for notes to accounts under Ind AS
  4. DXBRL is a measurement technique for fair value under Ind AS 113

Explanation

XBRL (eXtensible Business Reporting Language) is a data-tagging language for electronic reporting. It standardises how information already prepared under Ind AS is presented for machine reading and comparison. It does not change recognition or measurement, nor does it remove disclosure requirements, and it is unrelated to Ind AS 113 valuation techniques.

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