News from the Lab
19 December 2017
13 December 2017
A new report from the the Lab published today concludes that XBRL (eXtensible Business Reporting Language) is an important technology in the path to digitisation of company reporting. However, since the potential benefits of XBRL for listed company reporting are not guaranteed, the Lab urges regulators, companies, investors and technology providers to work together to realise fully the potential of XBRL and to respond to the challenge of a new European Single Electronic Format (ESEF) for digital corporate reporting due in 2020.
XBRL Deep Dive - Digital Future of Corporate Reporting (PDF)
8 December 2017
The Lab invites investors, analysts and companies of all sizes to participate in a project on Effective Reporting on Performance.
Following on from the Lab’s reports on business models (PDF) and risk and viability (PDF), this project will explore how companies measure performance against their strategic objectives. It will consider both financial and non-financial metrics, and highlight how these measures can be presented in a way that is most useful to investor decision-making.
We invite investors, analysts and companies to indicate their interest in participating by 31 January 2018 via email at FinancialReportingLab@frc.org.uk.
Full details of the project can be found here
1 December 2017
Following the release of the Financial Reporting Lab (the Lab) report on risk and viability reporting last week, the Lab has today published a summary slide pack and short video setting out the key findings from its report.
23 November 2017
Risk and viability reporting
In its report on Risk and Viability, published today, the Lab found that, since the financial crisis, companies have made enhancements to their risk reporting and investors have seen better engagement with them on how they are managing their risks. However, further improvements could be made and the full report provides guidance and practical examples on how companies can find a balance between reporting that is specific, whilst not revealing commercially sensitive information.
Risk and Viability Reporting (PDF)
12 October 2017 - Newsletter Q3
The Financial Reporting Lab has published its quarterly newsletter. This edition gives some insight into the ongoing project on Risk and Viability, an update on Digital and highlights some of the other activity that the Lab has been involved in.
Lab Newsletter Update - Quarter 3 2017 (Web version)
Lab Newsletter Update - Quarter 3 2017 (PDF version)
30 June 2017 - Newsletter
The Financial Reporting Lab has today published its quarterly newsletter. The newsletter is published in a format that can also be easily read on a mobile or tablet device. Read it here or see the PDF.
2 May 2017 - FRC Lab releases first output from its Digital Future Project
The Lab has published a report which sets out a framework for future digital reporting. The report is the first in a series from the Lab’s Digital Future Project. The report expresses the views of a wide range of preparers, investors and others on the characteristics that they would like to see in any future (digitally enabled) system of corporate reporting. It identifies twelve characteristics that are fundamental to any system of future digital reporting:
In the next phase of the project, the Lab will assess the extent to which technologies such as virtual reality, augmented reality, blockchain, XBRL, video, and other digital media fit the framework. The FRC is keen to hear the views of technology experts and others with strong views on, or experience of, how technology might be used for corporate reporting. The Lab will host tech-focused round tables during 2017, and interested parties should contact firstname.lastname@example.org to get involved. Read the full report here.
28 March 2017 – Making online reporting work for investors
The Financial Reporting Lab (Lab) working with the Corporate Reporting Users’ Forum in Canada and the UK have created an infographic which highlights some key ways that companies could enhance digital corporate reporting in a meaningful way. It provides some useful insights into what investors and analysts want from online reporting. See the infographic.
23 March 2017 - Your chance to influence the future of the Financial Reporting Lab
The Financial Reporting Lab (Lab) celebrated its 5th-anniversary last year. Since its inception, it has produced 14 reports expressing the view of market participants on a variety of corporate reporting topics. The last, survey in 2014 fed directly into the projects we have completed over the last three years.
I am delighted to have recently been appointed as the Director of the Financial Reporting Lab. The Lab team and I would be very pleased to hear from you through this short questionnaire and in particular, your views on the future direction of the Lab and the projects that it should undertake.
We would be grateful if you could take a few minutes to answer the questions, which are tailored to you depending on the extent of your involvement with Lab activities in the past.
Please also feel free to send it on to others whom you feel might have an opinion. Here's the survey.
Director, Financial Reporting Lab
16 March 2017 - Lab calls for participants for new project on the reporting of risk and viability
The Financial Reporting Lab (the Lab) invites companies, investors and analysts to participate in a project on effective Risk and viability reporting.
This project follows the publication of the Lab Report on Business model reporting (PDF) which was published in October 2016. It will explore how companies can develop effective principal risk reporting and viability statement reporting to meet the needs of investors.
Full details of the project can be found here (PDF).
We invite companies, investors and analysts to indicate their interest in participating by 21 April via email at FinancialReportingLab@frc.org.uk.
26 January 2017 - FRC publishes Lab case study: WM Morrisons Supermarket PLC
The Financial Reporting Council’s (FRC) Financial Reporting Lab has today published a case study report on WM Morrisons supermarket PLC, which focuses on disclosures of Supplier Relationships and Commercial Income.
The study follows Morrisons through the process of reporting on commercial income in 2014/15 and 2015/16, and finds that the holistic approach was considered helpful by investors.
While the report focuses on an issue of most relevance to the retail industry, its themes are applicable more widely. The report provides valuable insight into how investors’ views on reporting and disclosure on emergent issues evolve over time, and notes strong opinion from investors that confidence in a company’s finance processes and transparent reporting translates positively into confidence in the company.
This report forms part of the FRC’s Clear & Concise reporting initiative that promotes transparent and accessible reporting.
A copy of the report can be downloaded here (PDF).