The Financial Reporting Council (FRC) today announces a project to improve the quality of electronic "tagging" of accounts. Financial information in corporate reports is now often electronically “tagged” so that users of the data can more easily pull out the information they want and analyse it more efficiently. XBRL is a technology that enables this to be done in a standardised way. Following transfer of responsibility to the FRC, the XBRL tagging convention – taxonomies - will be updated to reflect the new financial reporting standards (FRS 100, 101 and 102) for the UK and Ireland introduced by the FRC in March 2013.
UK companies already have to submit their accounts to HMRC in XBRL format and many also voluntarily do so when they submit them to Companies House. Updating the XBRL tagging conventions will enable companies to continue to do so after they have adopted the new accounting standards.
A governance committee is overseeing the project to ensure credibility and confidence in developing and delivering the new electronic standards. The project has secured funding and resources to ensure delivery from Companies House, HMRC, major accounting firms, BIS and the FRC.
It is the FRC’s aim that the updating will be available from 1 January 2015 to coincide with when the new financial reporting standards have become applicable.
Melanie McLaren, Executive Director Codes and Standards at the FRC said,
“Improved tagging of corporate reports enhances investors’ ability to compare and analyse. The FRC sees e-enablement of financial communication and reporting as an extension of its standard setting.”
Notes to editors:
The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies.
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