XBRL FRC Taxonomies
Consultation on proposed amendments to the FRC Taxonomies
The FRC are consulting on conventions for the electronic tagging of accounts to support the objectives of enhancing the quality and accessibility of financial reporting in the UK and to enable digital reporting of IFRS and UK GAAP standards. The FRC is committed to seeking evidence from consultation with users, preparers and others. Accordingly, the proposed amendments to the FRC taxonomies may be modified in the light of comments received before being issued in final form.
The proposed amendments mainly relate to IFRS standards that have been endorsed since the last set of amendments to the FRC Taxonomies:
- IFRS 9 Financial Instruments
- IFRS 15 Revenue from Contracts with Customers
- IFRS 16 Leases
IFRS 15 and IFRS 9 are effective for annual periods beginning on or after 1 January 2018 and IFRS 16 is effective for annual periods beginning on or after 1 January 2019. Preparers will need amendments to the Taxonomies to be able to digitally report under these standards from 1 January 2019. There are also some amendments proposed to improve the taxonomies.
The consultation period will close on 28 August 2018. The proposed amendments relate to the FRC’s Taxonomies: UK IFRS, FRS 101, FRS 102 and Charities and FRC 2019 taxonomy documentation (supporting documents, key information sheets and release notes).
The taxonomies are available for review on Yeti:
Mapping documents detailing all the changes that are proposed to the FRC taxonomies with the relevant highlighting according to the type of change and the standard to which the proposed changes can be found:
The mapping documents are designed to enable software houses to easily identify the proposed amendments. Four colours are used with:
- red denoting a proposed deletion,
- green a proposed addition,
- yellow a change to an existing line, and
- orange to indicate deprecated items.
Two new columns have been added to the start of each sheet to provide more information in relation to the change. The first column ‘Description of Change’ provides a brief but informative description of the nature of the changes, giving greater detail. The second column ‘Ancestry Change', indicates that a concept has moved within the current hierarchy.
Developer and Tagging guides are available in the section: Design and Guides, which outline the approach taken to the design of the taxonomies. The reports on the impact on FRC Consistency Checks and Joint Filing Common Validation Checks are available to download below:
HMRC, Companies House and the Irish Revenue Commissioners are expected to adopt the taxonomies in due course when they are finalised.
The FRC has made amendments to the suite of taxonomies last issued in December 2015.
Versions of the full suite of FRC taxonomies for 2018 were released on 18 December 2017 to reflect the amendments made to UK GAAP Financial Reporting Standards on 14 December 2017 which are available for early-adoption as from the date of release. All reporters may elect to use the taxonomy versions released on 18 December 2017. Those reporters not early-adopting the amended standards who wish to continue to report using the previous versions of the above taxonomies, may continue to do so.
Micro preparers to tag using only those parts of the FRS 102 taxonomy which are relevant
Small preparers using FRS 102 to do likewise
FRS 101 preparers using the IFRS formats to tag using the extant IFRS taxonomy.
A zip file for the amended taxonomies can be downloaded here. A mapping for software companies of the amended taxonomies to those issued in September 2014 can be found here.
HMRC and Companies House are adopting the charity taxonomy and the amended taxonomies for filings of accounts.
The Charities FRS 102 SORP Taxonomy (v1.1.1) and the FRC Taxonomy (v2.1.0) are both available to view here.
HM Revenue and Customs filing requirement
HM Revenue and Customs (HMRC) updated their systems in April 2018 to accept Company Tax returns containing accounts that have been tagged with the taxonomies.
The revised taxonomies can be used by all companies that have to prepare accounts under one of the following accounting frameworks:
EU-adopted International Financial Reporting Standards (IFRS)
Financial Reporting Standard (FRS) 101
FRS 102 Section 1A Small Entities
FRS 105 Financial Reporting Standard applicable to Micro-entities
The taxonomies are already mandatory for HMRC for accounts that are prepared under FRS 101, FRS 102 or EU-adopted IFRS. Companies preparing accounts under these accounting standards should use the new additional XBRL tags.
The taxonomies have been designed with full tagging in mind and so accounts and computations must be fully tagged insofar as the taxonomy used contains appropriate XBRL tags. The Charity taxonomy can be used by all charities that have to prepare accounts under the following accounting framework, but is mandatory for large charities with income over £6.5m: Charities FRS 102 SORP.
Charity Accounts Taxonomy
An updated version of the Charity taxonomy was released by the FRC and the Charity Commission (CC) on 18 December 2017 for the electronic tagging of charity accounts to support the CC’s objectives of enhancing the quality and accessibility of financial reporting for Charities in the UK and Ireland. Those reporters not early-adopting the amended FRS 102 standard who wish to continue to report using the previous version of the charity taxonomies, may continue to do so. The iXBRL accounts tagging convention (Charity “taxonomy”) has been updated in line with the Charity SORP (FRS 102) and the FRC’s financial reporting standard FRS 102.
The taxonomy will be used when tagging charity accounts for electronic filing and for other analytical purposes. Electronic tagging helps users of financial information to extract relevant information from corporate reports and analyse it more efficiently.
Jennifer Guest - Project Director, Accounting and Reporting Policy.