FRC Lab report notes digital future of corporate reporting

  • FRC (United Kingdom Financial Reporting Council) Image

Dec 13, 2017

In December 2017, a new report from the Financial Reporting Lab of the UK Financial Reporting Council (FRC) concludes that XBRL (eXtensible Business Reporting Language) is an important technology in the path to digitization of company reporting.

The Lab considered how XBRL could be used in the production, distribution and consumption of listed company annual reports. The Lab identified gaps between the characteristics that users and preparers desired from digital reporting and the expected implementation of XBRL for listed company reporting. To close these gaps, the report recommends a series of actions for regulators, technology companies, preparers and investors and notes:

We are at a turning point for the use of technology in corporate reporting. The paper-based way of reporting is likely to change with the European requirement to prepare digital financial information by 2020. The changing demands of users, supported by upcoming regulatory changes mean that boards can no longer ignore digitization of listed company reporting. This report urges all those involved in corporate reporting to help shape the future.

Review the report on the FRC's website.

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