UK regulators seek input on the future of digital finance reporting

TLDR:

• UK regulators, including the FRC, are seeking input on the future of digital financial reporting in the country.
• The consultation addresses key developments following the UK’s exit from the EU and the passing of the Economic Crime and Corporate Transparency Act 2023.

UK regulators, led by the Financial Reporting Council (FRC), have launched a consultation on the future of digital financial reporting in the country. The consultation paper, released on August 13, 2024, seeks input on crucial issues such as alternatives to the European Single Electronic Format (ESEF) taxonomy, expansion of digital reporting requirements, and the implementation of “full tagging” mandates. One key discussion is whether the UK should move away from the EU’s ESEF taxonomy towards a UK-specific alternative, with options including adapting the IFRS Foundation’s taxonomy or using the FRC’s existing UK-IFRS taxonomy. The regulators are also exploring the extension of digital reporting requirements beyond current mandates to include areas like sustainability reporting, interim financial information, and prospectus data. The consultation period runs until November 1, 2024, and stakeholders across the financial reporting ecosystem are encouraged to engage with this consultation to shape the future of digital reporting in the UK.