Core Viewpoint - The Financial Reporting Council (FRC) has released a discussion paper proposing technical updates to the UK XBRL Taxonomy Suite aimed at enhancing digital financial reporting in the UK [1][2]. Group 1: Proposed Changes - The proposed changes focus on improving the structure and functionality of taxonomies used for digital filings, enhancing usability, scalability, and technical consistency in financial data submissions [1][2]. - Key recommendations include shifting from fixed item types to extensible enumerations to align with current XBRL standards [2]. - The introduction of formula linkbases is proposed to enable automatic checks and improve data quality, along with expanding the use of typed dimensions for increased flexibility [3]. Group 2: Additional Recommendations - Recommendations also include eliminating the usage of across entry-points elements to safeguard taxonomy structure and considering specific entry-points for micro-entity and small company reports [4]. - Incorporating accounting semantics arcroles is suggested for clearer data interpretation, and there is a move towards digitizing charities' receipts and payments accounts [4]. Group 3: Stakeholder Engagement - The FRC is encouraging responses from individuals and organizations involved in preparing digital financial reports, including software providers, accountants, and regulators [5]. - The proposed changes are expected to impact all digital reporting software utilizing FRC-developed taxonomies, necessitating updates to systems if the proposals are implemented [5]. - Responses to the discussion paper are requested by 11 January 2026 [5].

The European Financial Reporting Advisory Group (EFRAG) has announced an initiative to create a key performance indicator (KPI)-based voluntary reporting template for small and medium-sized enterprises (SMEs). The initiative aims to improve the “accessibility and comparability” of financial information within EU SMEs. The proposed reporting template is expected to be accessible via the European Single Access Point (ESAP). This move, prompted by a request from the European Commission (EC) on 29 July 2025 ...