Advantages

• Creation of machine readable business reports
• Cost savings to all stakeholders
• Greater Efficiency and Accuracy
• Increased Reliability of Business reports.

Concept

Until now all business financial statements were prepared as printable and readable pages in both softcopy or hardcopy format. However the entire information was presented as one block of text. There was no uniformity in the presentation of this block of text. It overcomes this constraint by breaking apart the entire block of text into separate items and tagging each piece of information with a unique concept name. A huge list of concept names are pre-defined. This listing of concepts along with a few other files that define the interrelationship between these concepts are termed as a TAXONOMY. The process of linking each item with a predefined concept is called TAGGING, and the output file generated by converting a report into this standard format is called an INSTANCE DOCUMENT.

Extentsibility

Any Taxonony contains a list of concepts and define their interrelationships. The regulatory authority notifies the Taxonomy for different class of Industries containing industry specific concepts. However, the full power lies in its flexibilty to provide a means whereby a reporting organization can define its own Concepts if similar concepts are not existent in the notified Taxonomy. This flexibilty of adding own concepts and defining their interrelationship with the other concepts is called Extensibility. Please note however that MCA has not permitted extentions in the current year.