More work to be done on companies’ digital annual reports
News types: Generic Announcement, Publications
Published: 23 September 2022
The FRC Lab (Lab) has today published a report that identifies lessons learnt from the first year of mandatory structured digital reporting under the TD ESEF regulation.
The Lab’s review found many companies have risen to the challenge of producing an annual financial report in the new digital format. However, there is still much to be done as data quality and usability remain below the level expected for companies in a leading capital market.
The report sets out some actions to improve companies’ processes, the usability and design of the reports and XBRL tagging.
Mark Babington, Executive Director of Regulatory Standards at the FRC, said:
"It’s really encouraging that so many seem to have taken on board the tips from last year's early implementation review. There is of course room for improvement and the actions in this report will help companies to make their reporting fit for increasing digital consumption. A focus on data quality and usability will be key to achieve this."
Clare Cole, Director of Market Oversight at the Financial Conduct Authority, said:
“We welcome the FRC Lab’s valuable work to help companies produce high-quality structured reports. This report is an important step to help unlock the full benefits of structured digital reporting for all participants in the UK’s capital markets.”
A link to the full report is available here. A webinar covering the report findings and suggestions will be organised in autumn – further details will be available on the project page and will be sent to FRC News Alert subscribers.