Tuesday, July 11, 2017

SHOULD INDIAN LAWYERS BE ALLOWED TO WORK ON CONTINGENCY

The Bar Council of India prohibits advocates from charging fees to their clients contingent on the results of litigation or pay a percentage or share of the claims awarded by the Court. Bar Council of India Rules: Part VI, Chapter II, Section II, Rule 20 which reads as under:
“20. An advocate shall not stipulate for a fee contingent on the results of litigation or agree to share the proceeds thereof.”
Many have the misconception that the reason why lawyers do not work on a contingency basis is that such an agreement between the lawyer and client would be a wagering one, and therefore are void. Apart from the Bar Council Rules which have expressly prohibited it, in the landmark case of Ganga Ram v. Devi Das, 61 P.R. (1907), such an agreement was held to be void for being against public policy and also against professional ethics
 However, although prohibited, in several cases, especially those before the lower Courts, clients are charged on the percentage of claim amount that the lawyer is able to recover. However, the practice though prevalent, has hardly led to disputes and is can seldom be proved. Reason being that the contingency agreement is always oral and highly informal. It must be remembered that such an agreement is not only void but also would lead to the lawyer facing disciplinary action by the Bar Council and a chance of losing one’s license to practice at the Bar.
Contingency fees exist in the civil realm because the attorney "attaches" their fee to the resulting award; if there is no award, there is no fee. Many states also bar attorneys from taking divorce cases on contingency for similar reasons -- there's not an "award" but rather a separation of property. Further, it's an ethical issue that could result in the attorney preferring a plea bargain over going to trial, in order to further their interest in securing payment from the client, rather than taking the client's best interest. This isn't as much of a concern in the civil realm, because someone's not going to prison; they're just settling a dispute between private parties.
The main reason for the express prohibition in the Bar Council of India Rules is probably because lawyers must not be allowed to have ulterior interests in the outcome of the case. They are considered to be of a ‘noble profession’, and are officers of the Court. Their main objective must be Justice and not financial gain.
 If they were interested in the matter, they might adopt unfair means or allow their emotions to get the best of them. Sometimes, the Court may grant an alternate remedy then the one paid for, which the contingency agreement does not cover. In such case it is difficult to determine the lawyer’s fee. This may lead to unimaginable amount of disputes between lawyer and client.
Although theoretically this may seem like a very good reasoning, but in practice the Contingency Fee system is a boon to poor clients. There must be several people in India, who even though they have been wronged, do not take legal action because of the legal expenses and the fear that even after somehow being able to meet those expenses, still losing the suit. If the abovementioned rule is removed from the Bar Council of India Rules, then this transaction can be developed. Written and formal documents can come into existence with clear cut clauses for every possible outcome, as well as whether out-of-pocket expenses are also to be paid are also contingent
K.L. GAUBA VS UNKNOWN
This is an application under our disciplinary jurisdiction against Mr. K. L. Gauba. It came to the notice of this Court that Mr. Gauba, who is an advocate of this Court, had entered into an agreement with his client, one Amarnath Bhardwaj, which appeared to be champertous and this Court took the view that the circumstances under which the said agreement had been entered into and the terms of the agreement itself called for an investigation under the disciplinary jurisdiction, and so it was decided to refer this case to the Bar Council.
Accordingly, on May 1, 1953, the learned Chief justice appointed three members of the Bar Council to constitute a Tribunal under Section 11 of the Bar Councils Act for inquiring into this case. Notice of the intended inquiry was served on Mr. Gauba in due course. He appeared before the Bar Council Tribunal, gave his explanation on July 10 and filed an additional statement on August 6, 1953. The matter was then heard by the Members of the Tribunal and they made the report on December 16, 1953. The Tribunal has held that the respondent had entered into an agreement with the client that he should be given half of the profits of the litigation in case of success and this in the opinion of the Tribunal amounted to professional misconduct. After this report was received, notice of the hearing of the present application was served on Mr. Gauba and the matter has thus come before us for final disposal.
It would thus seem that the American decisions are based upon the statutory law upon the subject as obtaining in America. In India, however, we have got the provisions ofSection 23 of the Indian Contract Act according to which the agreements like the agreement in this case being against public policy must be deprecated. I, therefore, agree with my learned brother that Mr. Gauba's conduct in this case was grossly unprofessional and most objectionable
Law Commission fails    
The Law Commission of India has failed to address the issue of excessive litigation cost in the country which is predominantly the result of unfair levy of fees by lawyers. In its 240th report (May 2012), the commission examined several state rules on fees and strangely, pleaded for enhancement of fees! According to the report, fee prescribed in the rules is ‘so meager’.  
Rules do not cover all types of cases or courts and, therefore, the major varieties of fee are outside their ambit. Levying of fee by lawyers in India is not by and large governed by any rules at all, and even in areas covered by the rules, as in civil litigation, they are honored only in their breach.  
Ø The public view of eminence in advocacy also needs to be changed.
The artificial and luxurious misconceptions about professional greatness need to be exposed and fairness in fixation of remuneration recaptured. While recognising the labour behind research, travel and homework, the litigant also should be guaranteed fairness in dealings. We are yet to realise the significance of proper guidance and genuine legal consultation. It is reasonable to charge for a fair advice after due consultation than charging exorbitantly for a fruitless litigation based on an erroneous or casual advice.
The country should change its litigation habits. More egalitarian and sophisticated methods of dispute resolution like arbitration and conciliation are to be encouraged in areas ranging from business to matrimonial disputes. The iron wall between legal profession and society is only to be smashed and the profession demystified. There is a real need to evolve a national movement for fair advocacy which should take in lawmen as well as laymen from all the states. 
Types of Legal Fees:-
The type of fee arrangement that you make with your lawyer will have a significant impact on how much you will pay for the services. Legal fees depend on several factors, including the amount of time spent on your problem; the lawyer's ability, experience, and reputation; the novelty and difficulty of the case; the results obtained; and costs involved. There will be other factors such as the lawyer's overhead expenses (rent, utilities, office equipment, computers, etc.) that may affect the fee charged.
There are several common types of fee arrangements used by lawyers:
  • Consultation Fee: The lawyer may charge a fixed or hourly fee for your first meeting where you both determine whether the lawyer can assist you. Be sure to check whether you will be charged for this initial meeting.
  • Contingency Fees: The lawyer's fee is based on a percentage of the amount awarded in the case. If you lose the case, the lawyer does not get a fee, but you will still have to pay expenses. Contingency fee percentages vary. A one-third fee is common. Some lawyers offer a sliding scale based on how far along the case has progressed before it is settled. Courts may set a limit on the amount of a contingency fee a lawyer can receive. This type of fee arrangement may be charged in personal injury cases, property damage cases, or other cases where a large amount of money is involved. Lawyers may also be prohibited from making contingency fee arrangements in certain kinds of cases such as criminal and child custody matters. Contingency fee arrangements are typically not available for divorce matters, if you are being sued, or if you are seeking general legal advice such as the purchase or sale of a business.
  • Flat Fees: A lawyer charges a specific, total fee. A flat fee is usually offered only if your case is relatively simple or routine such as a will or an uncontested divorce.
  • Hourly Rate: The lawyer will charge you for each hour (or portion of an hour) that the lawyer works on your case. Thus, for example, if the lawyer's fee is $100 per hour and the lawyer works 5 hours, the fee will be $500. This is the most typical fee arrangement. Some lawyers charge different fees for different types of work (legal research versus a court appearance). In addition, lawyers working in large firms typically have different fee scales with more senior members charging higher fees than young associates or paralegals.
  • Referral Fee: A lawyer who refers you to another lawyer may ask for a portion of the total fee you pay for the case. Referral fees may be prohibited under applicable state codes of professional responsibility unless certain criteria are met. Just like other fees, the total fee must be reasonable and you must agree to the arrangement. Your state or local bar association may have additional information about the appropriateness of a referral fee.
  • Retainer Fees: The lawyer is paid a set fee, perhaps based on the lawyer's hourly rate. You can think of a retainer as a "down payment" against which future costs are billed. The retainer is usually placed in a special account and the cost of services is deducted from that account as they accrue. Many retainer fees are non-refundable unless the fee is deemed unreasonable by a court. A retainer fee can also mean that the lawyer is "on call" to handle your legal problems over a period of time. Since this type of fee arrangement can mean several different things, be sure to have the lawyer explain the retainer fee arrangement in detail.
  • Statutory Fee: The fees in some cases may be set by statute or a court may set and approve a fee that you pay. These types of fees may appear in probate, bankruptcy, or other proceedings.
With all types of fee arrangements you should ask what costs and other expenses are covered in the fee. Does the fee include the lawyer's overhead and costs or are those charged separately? How will the costs for staff, such as secretaries, messengers, or paralegals be charged. In contingency fee arrangements, make sure to find out whether the lawyer calculates the fee before or after expenses.
We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.
We have a team of highly qualified professionals and time to time training is provided by us as per the requirements. Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.
Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.
Contact at parascs@gmail.com or refer website www.pnjlegal.com


Composition Scheme Rules under GST

Composition Scheme Rules under GST provide for all the procedural compliance w.r.t. intimation for Composition Scheme, effective date for levy, conditions and restrictions on levy, validity of levy and rate of tax.

The current state indirect tax regime has provided a simpler compliance for small dealers known as the Composition Scheme. Under this scheme you,
  • Pay taxes only at a certain percentage of turnover
  • File periodic returns only (usually on a quarterly basis)
  • Have an option of not having to maintain detailed records or follow tax invoicing rules
  • Are not allowed to take Input Tax Credit (ITC)
  • Are not allowed to collect tax on sales

A. Intimation and Effective date for Composition Levy

1.   For persons already registered under pre-GST regime

Any person being granted registration on a provisional basis (registered under VAT Act, Service Tax, Central Excise laws etc) and who opts for Composition Levy shall file an intimation in FORM GST CMP-01, duly signed, before or within 30 days of appointed date. If intimation is filed after the appointed day, the registered person:
a) Will not collect taxes
b) Issue bill of supply for supplies
FORM GST CMP- 03 must also be filed within 60 days of exercise of option:
a) Details of stock
b) Inward supply of goods received from unregistered persons held by him on the date preceding the day of exercise of option.

2. For persons who applied for fresh register under GST to opt scheme

For fresh registration under the scheme, intimation in FORM GST REG- 01 must be filed.

3. Registered under GST and person switches to Composition Scheme

Every registered person under GST and opts to pay taxes under Composition Scheme, must follow the following:
a) Intimation in FORM GST CMP- 02 for exercise option
b) Statement in FORM GST ITC- 3 for details of ITC relating to inputs lying in stock, inputs contained in semi-finished or finished goods within 60 days of commencement of the relevant financial year

b. Conditions for a Composite Tax Payer

Apart from the threshold limit, the following conditions are applicable for a composite tax payer:
  • Cannot be engaged in supply of services, other than supply of food or drinks for human consumption
  • Cannot be engaged in manufacture of specific notified goods
  • Cannot supply goods not taxable under GST
  • Cannot supply goods through an e-commerce operator
  • No Interstate outward supplies – A composite tax payer should not engage in interstate outward supply of goods and / or services .
  • Payment of composition tax – If the composite tax payer is in the trade of supplying goods and services, then composition levy will be applicable for both supply of goods and supply of services.
  • Does not have to collect tax – The composite tax payer does not have to collect tax on all his outward supply of goods and / or services.
  • Applicable for all business verticals under the same PAN – Composition levy will be applicable for all business verticals operating within state or interstate under the same pan.
  • What does this mean?
  • An individual with different business verticals, like:
  • Mobiles & Accessories
  • Stationery
  • Franchisee
In the above scenario, the composition scheme will be applicable for all three business verticals. The dealer cannot opt for any one business vertical to fall under the composition scheme. For example, if the business vertical’s place of business is in Karnataka & Kerala for a single PAN, each of the business vertical in that particular state should have only ‘Intra-State(within state)’ supplies.
  • Cannot claim Input Tax Credit – The composite tax payer is not eligible to claim input tax credit on all his inward supply of goods and / or services.
  • What does this mean?
  • If a dealer chooses to be a composite tax payer, he cannot claim input tax credit even if he makes taxable purchases from a regular taxable dealer. Ideally, the taxable amount would be added to the composite tax payer’s cost.
  • Conclusion
Any person who opts for the scheme will be deemed to have been opted for all the places of business having the same registered PAN. Hence, you may not choose any one of all the place of business to be registered under scheme.
Composition Scheme Rules under GST have been targeted to be strict and crisp for the persons availing the Composition Scheme.
We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.
We have a team of highly qualified professionals and time to time training is provided by us as per the requirements. Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.
Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.
Contact at parascs@gmail.com or refer website www.pnjlegal.com


Monday, July 10, 2017

Importance of contract drafting for your business

A well-written contract is the heart of any successful business and serves as the foundation of any transaction done by businesses. A contract is a legal proof of any transaction, agreement or trade done between two businesses. But more often than not, contract drafting is undermined by businesses and this leads to major complications in future.
Business cannot only rely on shake hands and vocal commitments, there has to be a written, law abiding proof of the agreement.  A contract lays the foundation for anything you or your business might do, and protect your actions by law.
Various types of contracts:
Sales of service/ Goods Contract
Terms and condition of use
Lease contract
Agency agreements
Distribution and Franchise Agreements
Partnership agreement
Intellectual property contract
Employment contract
And many more, any time you or your business interact with another business or individual- there is a contract for it. This explains the dire importance a well-drafted contract.
Here are our few tips to consider before contract drafting.
1.      Never do anything without a contract or an Agreement:   Businesses don’t run on trust. So trusting your partner over a shaking hand or over a verbal agreement can lead to disastrous results in future.  However old you relations might be, it is always worth taking an effort to draft a legal contract- so you are protected in case things go wrong.
2.      Seek expert help if necessary: Drafting a contract is an art, as well drafted – well-organized contract can help you negotiate over important trade aspects. It also makes sense to add a non-compete or other similar clauses to protect and secure your business. Contracts also allow you to discuss future of your partnership and what should happen if someone violates the contract.
3.      Take your time to read through the entire contract: It is always a good idea to read the whole contract before you sign it. As once you sign the contract, you cannot break free from it without legal consequences. That is why it is recommended that you read the entirety of contract, word by word and then sign.
4.      Perfect your language: While drafting a contract you need to be very precise and accurate about your goals and describe them in plain, simple to understand English. Each sentence should be less than 25 words and must be easy to understand. Avoid long, confusing and complex sentences. Remove redundancies and only talk about essential points. Avoid passive voice and minimise the use of prepositions. Avoid non-professional language. Draft the contract as if an 8th-grade student was going to read it. Keep the writing simple, clean and precise. Avoid jargon and confusions.
5.      Organise your Contract: When writing a contract, think of you creating a book and each clause you add represents a chapter in that book. Organise those clauses in such a way that your contract flows smoothly and talks about each point only once. Make sure you define terms used in the beginning of every section and feel free to reference to it later in the contract when required.
Choose your words very carefully, as a small mistake might cost millions in future.
We at pnjlegal.com offer professional contract drafting services.
We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.
We have a team of highly qualified professionals and time to time training is provided by us as per the requirements. Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.
Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.
Contact at parascs@gmail.com or refer website www.pnjlegal.com


10 reasons why you must use Quickbooks for your business

Quickbooks is by far the most popular accounting software from small and medium sized businesses. Developed and distributed by intuit, QuickBooks is an ideal accounting software for business owners.
Here are 10 reasons why you must use Quickbooks for your business.
1.      Save paperwork and book keeping: Quickbooks handles majority of bookkeeping tasks automatically saving you ton of precious time and paperwork. This allows you to focus more on your business rather than bookkeeping.
2.      Generate Reports on Demand: with Quickbooks for accounting, you can easily and quickly generate reports about your business and quickly evaluate where you stand.  These regular reports help you to determine whether your business is on right track or not.
3.      Save Money and Resources: Quickbooks allows you to do a job of a team of accountants with just a computer. You can save both valuable resources and money using Quickbooks- as it only costs few hundred dollars and entirely replaces your accounting section.
4.      Grow with Quickbooks: Quickbooks for accounting does not only allow you to simplify your business but also allows you to create a successful business plan. With a projected balance sheet, future growth predictions, profit and loss statements Quickbooks truly helps you to take you business to the next level.
5.      Highly Customizable: QuickBooks is extremely customizable when it comes to accounting. Whether you are a contractor, consultant, or a real estate agent, Quickbooks has everything to suit your needs.  Its highly flexible and adjustable software design makes it an ideal match for a variety of small and medium sized businesses.
6.      Trusted and Reliable: with Quickbooks assurance is guaranteed.  It is a stable, reliable and proven accounting system that never fails.  Quickbooks also has a vast user base and great support team to help you every step of the process.
7.      Say goodbye to errors: Quickbooks integrates with hundreds of popular business applications, which ensures a smooth operation of your business. You can safely say goodbye to errors as Quickbooks is excellent at detecting and correcting them.
8.      Accept Credit Cards and online payments: with Quickbooks merchant account, you can easily accept payments from your clients either via credit cards or via online bank transfers. No need to wait for your clients to send checks in the mail. Its SSL secure payment gateway services ensures that both you and your client’s details are safe.
9.      Take care of your expenses: Quickbooks makes it extremely easy to pay bills online or transfer money to your clients. You can too quickly and easily send payments, and track them with just a single click.
10.  Get paid Faster: Quickbooks for accounting also has a unique invoice system which lets their users directly send invoices via email. Their clients can quickly accept the invoice and pay via credit card, online banking or bank transfer.
Whether you are running a small business in your garage or running a multimillion dollar firm, Quickbooks is a must have software- for all your accounting needs.

We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.
We have a team of highly qualified professionals and time to time training is provided by us as per the requirements. Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.
Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.
Contact at parascs@gmail.com or refer website www.pnjlegal.com


3 Secrets for a successful Real Estate consulting career

Real estate offers a lucrative opportunity for aspiring graduates. One can truly start a successful career in real estate, especially as a real estate consultant or Agent. Gone are the days when people bought and sold their properties through direct contact- today more than two thirds of transactions are done via brokers and agents.
With such huge opportunities, you might also face strong and difficult competition from experts in the field. That is why we bring you 3 secrets for a successful real estate consulting career.
1.      Start Small: In the field of real estate, you will face direct competition from experienced and multimillion dollar firms.  And for any beginner these companies may pose a serious threat to you and your career. That is why it is extremely important to make your own brand in the market and gain trust among other competitors.
It is always a good idea to know your competition first and maintain a good relationship with them. Don’t try to outsmart or out-budget them, rather make a reputation and quality that customers will be attracted to you.
For fist 2 or 3 years, you need to start small- you need to think small. Do not rush into big, popular projects, rather focus on smaller projects that these big companies are not willing to take.
2.      Marketing Marketing and Marketing: When it comes to real estates, marketing can be the deciding factor between your success and failure. With rise of Internet, Smartphones and Latest technologies marketing techniques are constantly evolving and it is extremely important to keep up with the latest marketing techniques.
Where as old players or big corporations might rely on their reputation and contacts for more leads, you can truly exploit the power of internet and marketing to find hundreds of potential leads. Granted that you might have to take unconventional forms of marketing such as video and app marketing but in the long run it will definitely pay off.
Look for a small, targeted audience and use whatever medium necessary to market to them. Make your company a brand, a brand that people trust and has good reputation in the field.
3.      Never Overestimate: This is probably the number one mistake real estate consultants make. They underestimate the costs and overestimate the profits. Let’s face the truth, you will not become a successful millionaire overnight, no no – real estates is never about short term success, rather long term relations and extreme work. And real estates also demands a significant amount of budget and planning as well.
Make sure you decide your budget and stick to it. And your budget should not only business expenses but also personal expenses and cost of living as well. Take good amount of time and device a great business plan. And try to put it in action as much as you can. Observe and study the business plan of already successful real estate consulting firms and try to replicate it.
What is your secret to success? Do let us know in the comments section down below.
We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.
We have a team of highly qualified professionals and time to time training is provided by us as per the requirements. Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.
Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.
Contact at parascs@gmail.com or refer website www.pnjlegal.com


Monday, July 3, 2017

users of ixbrl

Who uses it?

The international XBRL consortium is supported by more than 600 member organisations, from both the private and public sectors. The standard has been developed and refined over more than a decade and supports almost every kind of conceivable reporting, while providing a wide range of features that enhance the quality and consistency of reports, as well as their usability. XBRL is used in many different ways, for many different purposes, including by:

Regulators

  • Financial regulators that need significant amounts of complex performance and risk information about the institutions that they regulate.
  • Securities regulators and stock exchanges that need to analyse the performance and compliance of listed companies and securities, and need to ensure that this information is available to markets to consume and analyse.
  • Business registrars that need to receive and make publicly available a range of corporate data about private and public companies, including annual financial statements.
  • Tax authorities that need financial statements and other compliance information from companies in order to process and review their corporate tax affairs.
  • Statistical and monetary policy authorities that need  financial performance information from many different organisations.

Companies

  • Companies that need to provide information to one or more of the regulators mentioned above.
  • Enterprises that need to accurately move information around within a complex group.
  • Supply chains that need to exchange information to help manage risk and measure activity.

Governments

  • Government agencies that are simplifying the process of businesses reporting to government and reducing red tape, by either harmonising data definitions or consolidating reporting obligations (or both).
  • Government agencies that are improving government reporting by standardising the way that consolidated or transactional reports are prepared and used within government agencies and/or published into the public domain.

Data Providers

  • Specialist data providers that use performance and risk information published into the market place and create comparisons, ratings and other value-added information products for other market participants.

Analysts and Investors

  • Analysts that need to understand relative risk and performance.
  • Investors that need to compare potential investments and understand the underlying performance of existing investments.

Accountants

  • Accountants use XBRL in support of clients reporting requirements and are often involved in the preparation of XBRL reports.

What does XBRL do?

Often termed “bar codes for reporting”, XBRL makes reporting more accurate and more efficient. It allows unique tags to be associated with reported facts, allowing:
  • people publishing reports to do so with confidence that the information contained in them can be consumed and analysed accurately
  • people consuming reports to test them against a set of business and logical rules, in order to capture and avoid mistakes at their source
  • people using the information to do so in the way that best suits their needs, including by using different languages, alternative currencies and in their preferred style
  • people consuming the information to do so confident that the data provided to them conforms to a set of sophisticated pre-defined definitions
Comprehensive definitions and accurate data tags allow the:
  • preparation
  • validation
  • publication
  • exchange
  • consumption; and
  • analysis
of business information of all kinds. Information in reports prepared using the XBRL standard is interchangeable between different information systems in entirely different organisations. This allows for the exchange of business information across a reporting chain. People that want to report information, share information, publish performance information and allow straight through information processing all rely on XBRL.
In addition to allowing the exchange of summary business reports, like financial statements, and risk and performance reports, XBRL has the capability to allow the tagging of transactions that can themselves be aggregated into XBRL reports. These transactional capabilities allow system-independent exchange and analysis of significant quantities of supporting data and can be the key to transforming reporting supply chains.