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].

Core Insights - The European Financial Reporting Advisory Group (EFRAG) is launching a KPI-based voluntary reporting template aimed at enhancing the accessibility and comparability of financial information for small and medium-sized enterprises (SMEs) in the EU [1][2] Group 1: Initiative Overview - The initiative is a response to a request from the European Commission (EC) on July 29, 2025, intended to facilitate SMEs and start-ups in attracting investors and accessing finance [2] - EFRAG is collaborating with its Administrative Board, Financial Reporting Board (EFRAG FRB), and Technical Expert Group (EFRAG FR TEG) to allocate necessary resources for this project [2][3] Group 2: Development Process - The project was discussed in a joint meeting of the EFRAG FRB and FR TEG on September 10, 2025, where the FRB agreed to proceed with the initiative [3] - The development of the reporting template will involve gathering input from various stakeholders, including potential preparers like SMEs and users such as investors and banks, to understand their perspectives on disclosure requirements [3] Group 3: Timeline and Future Steps - EFRAG's assessment will culminate in a report to be submitted to the EC by June 2026 [4] - EFRAG recently reviewed the IASB's Exposure Draft on Provisions, recommending refined definitions and field-testing of the proposed guidance for IAS 37, while urging for quicker finalization and more guidance on obligations [4]