Statutory Auditors to Certify Financial Statements Filed in XBRL Format

The statutory auditors of all listed companies and also unlisted firms with a paid-up capital of at least Rs 5 crore or those with turnover of Rs 100 crore and above have more news to cheer about. The Ministry of Corporate Affairs (MCA) has made it mandatory for all the entities that are required to get their financial statements in XBRL format, to get them certified by their statutory auditors with respect to their correctness before filing them under XBRL mode in the MCA-21 portal.
Earlier, MCA has clarified that the accounts are to be filed in XBRL format information by September 30 for the Financial Year 2010 – 11. The above directive is expected to bring discontentment amongst the companies as they have to pay the auditors twice – once for carrying out regular statutory audit and another for certifying the correctness of their financial statements to be filed under XBRL mode in the MCA portal.
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