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Companies still face challenges with more complex aspects of digital reporting, the FRC has revealed.
The new FRC annual review of structured digital reporting highlights key areas for improvement in how UK listed companies present their digital annual reports.
Digital Annual Reports, which use the structured iXBRL format, have become a critical component of the UK reporting environment for listed companies since 2021, with hundreds of companies now required to report digitally by the FCA.
The FRC review analysed digital reports from FCA-listed companies across the market using tools developed as part of the CODEx project, such as a viewer tool for digital reporting that the FRC made publicly available last month. The analysis also included detailed assessments of 25 annual reports filed to the FCA’s National Storage Mechanism during 2024.
The report provides guidance for companies to address persistent challenges, including inappropriate use of custom tags, misapplication of tags from irrelevant accounting standards, and design issues affecting the usability of digital reports.
The FRC has also announced it will enhance its review of digital reporting by conducting a sample review alongside its normal monitoring of annual reports.
Mark Babington, executive director of regulatory standards at the FRC, said: “Digital reporting plays an essential role in enabling efficient access to company data, supporting investment decisions and improving market effectiveness. While we’re pleased to see progress in many areas, our review shows there should be greater focus on specific aspects to ensure digital reports provide maximum value to investors and other stakeholders.”
