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Structured digital reporting factsheet
Structured digital reporting
| What is the issue? | Why is it important? | What can you do? |
|---|---|---|
| 1 | ||
| Use of Custom Extensions Custom tags/ extensions are often being created when not necessary. | - Extensions create issues for those trying to analyse annual report data. At best they require an additional level of assessment to consider the purpose and nature of the extended data, at worst they are simply left out of analysis. | - Build in a process of review. Even if production is outsourced to a third-party it is still essential for preparers to review. - During the financial statements tagging process, companies may want to consider if an extension is needed. |
| 2 | ||
| Anchoring of Extension Taxonomy Where extensions are used it is common for them to not be anchored correctly. | - Proper anchoring of extension taxonomy elements is critical for linking meaningful additional information to the line item being tagged. | - Refer to the FRC and FCA guidelines for proper anchoring of extension elements. - Consider if the 'type attribute' value of an extension concept accurately reflects the type of information. - Review the narrower extension elements. |
| 3 | ||
| Accounting Meaning There are cases where the accounting meaning of the tags dose not correspond to the facts reported or do not reflect the correct standard. | - Misreporting can lead to significant discrepancies in how financial statements are analysed. | - Take time when selecting or reviewing tags to ensure that all disclosures correspond to the relevant elements. - It can be helpful to look at the documentation label and IAS (International Accounting Standard) reference as these provide details of the tags purpose and link back to the original standard. |
| 4 | ||
| Incorrect Sign or Scale There are cases where amounts are reported with the incorrect sign or scale. | - Accurate assignment of signage, balance, and scale attributes is crucial for the understanding of users of financial reporting. | - Before starting the company's tagging process for the year, review the previous accounts via UK iXBRL viewer to identify any issues or errors. |
| 5 | ||
| Missing Tags and Granularity There are many cases where 'mandatory' tags such as 'Principal place of business' or 'Domicile of entity' are not included or where the relevant level of granularity has not been applied. | - Missing tags and lack of granularity makes it difficult for investors to find the relevant information about a topic. | - Use appropriate block tags for larger pieces of information to ensure comprehensive coverage. - Maintain consistency across reporting periods to enhance comparability and reliability. |
| 6 | ||
| Design and Usability Design issues can still be a challenge for some filers. Many companies are also failing to put the file on their website or limit its value by delaying publication or not providing the tags in a viewable format. | - Design and accessibility issues can significantly impact the usability and readability of financial reports. | - Look at the how tagged text looks in the human readable report and, in a viewer, to ensure that the tagged narrative (when extracted) conveys the same meaning and structure as the original. - Maximise the value of your report making it available on your website with a viewer to ensure investors can easily access the report and utilise the data within. |
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