Poor Quality of XBRL Certified by Professionals
THE Ministry of Corporate Affairs has written a letter to the Presidents of Institute of Chartered Accountants of India, Institute of Company Secretaries of India and Institute of Cost Accountants of India about the poor quality of certification by Professionals of these Institutes.
Such filing are inaccurate and do not adequately represent true and fair view of the state of affairs of the company as per Section 211 of the Companies Act, 1956. Such XBRL filings, apart from being misleading, also dilute the effectiveness of XBRL for stakeholders' usage relating to the companies. It is unfortunate that professionals have certified the authenticity of such incorrect data, for which they are liable to be penalized.
The Ministry tells the Institutes:
It is bounden duty of Institutes to direct its members to take necessary steps to improve the quality of XBRL filing for FY 2011-12 to be undertaken by its members. The Institute may conduct further trainings, issue guidelines, etc so that such quality related issues are appropriately resolved.