The Financial Reporting Council (FRC) has put out a discussion paper to gather stakeholder feedback on crucial developments in digital reporting, as part of a cross-regulatory group along with Companies House, HMRC, the Financial Conduct Authority and the Charity Commission for England and Wales.

The paper addresses changes in the regulatory landscape and considers the impact of the recently passed Economic Crime and Corporate Transparency Act 2023.

The FRC has been developing and maintaining UK taxonomies for digital reporting for more than a decade. The UK Taxonomy Suite aims to play a role in minimising burdens on businesses while supporting economic growth. It enables investors to access and compare information efficiently. Regulators can also use it to confirm compliance with legal and regulatory requirements.

Key topics covered in the discussion paper include potential alternatives to the European Single Electronic Format taxonomy for UK regulated markets.

It proposes changes to structured digital reporting to support regulatory disclosure initiatives, and considerations for mandatory assurance of digital tagging. The paper also looks at the impact of ‘full tagging’ requirements on companies and charities, and strategies to support stakeholders in adapting to new digital reporting requirements.

The discussion paper seeks input from preparers of financial reports, investors, software vendors, accountants and regulators. It aims to help shape the future of digital reporting in the UK, balancing the needs of all users with transparency, comparability and efficiency in corporate reporting.

“We want to hear from our stakeholders about how we can continue to develop digital reporting in the UK and further enhance the benefits it offers,” says Mark Babington, FRC Executive Director of Regulatory Standards. “Market intelligence, information and data are increasingly important for both decision-making and monitoring outcomes, so it is crucial that we set a strategy for UK taxonomies that will continue to deliver for business in the future.”