Taxonomies are used when tagging accounts for electronic filing and for other analytical purposes. Electronic tagging helps users of financial information in corporate reports to extract the information they want and analyse it more efficiently. 

The XBRL accounts taxonomies have been updated by the FRC in line with a project it announced September 2013 and follow “a similar approach in content, design and style to the existing UK GAAP and IFRS taxonomies” with “design improvements”. 

The consultation seeks comments from “users, preparers and others” on three taxonomies to reflect full EU adopted IFRS and the new financial reporting standards for the UK and Ireland – FRS 101 and FRS 102.  

Following a period of consultation, the FRC indicates that “the proposed taxonomies may be modified in light of comments received before being issued in final form”. 

The FRC comments that “HMRC and Companies House are expected to adopt the taxonomies in due course”. 

Comments are invited until 8 July 2014. 

Click for:

• Press release (link to FRC website).
• XBRL Accounts Taxonomies – consultation paper (link to FRC website).
• FRC Accounts Taxonomies Design (link to FRC website).
• Our previous UK Accounting Plus news item.

The booklet provides a simple introduction to sustainability reporting using the GRI 'G4' sustainability reporting guidelines released in May 2013. It is divided into two parts:

• Section A looks at the internal and external benefits of sustainability reporting based on the experiences and testimonies of SMEs that GRI has engaged with in a number of projects since 2008. This section is intended to make the case for sustainability reporting for SMEs.
• Section B details the steps for creating a GRI sustainability report using the five phase GRI model for a sustainability reporting. It introduces five steps to preparing a sustainability report process and also includes proposals for actions that a company can undertake to address its sustainability impacts and the plans needed to support these actions.

The publication Ready to Report? Introducing Sustainability Reporting for SMEs can be downloaded from GRI’s website.

Mr Mackintosh opened his speech reflecting on today’s unique global economy and emphasised the need for internationally-accepted financial reporting standards. He noted that some of the advantages of such standards are (1) a lower cost to multinational companies with international subsidiaries, (2) the facilitation of the work of the regulatory community, and (3) a lower risk and cost of capital allocation.

After providing a brief example, Mr Mackintosh discussed the progress towards global accounting standards. He attributed the success of IFRS to "policymakers in countries [recognising] the compelling need to move to standardise on a globally consistent language for financial reporting." Mr Mackintosh stressed that the IASB's high-quality Standards are developed through an inclusive and transparent due process to meet the needs of its stakeholders.

Mr. Mackintosh went on to discuss the challenges of global accounting standards. He outlined the "three S's":

• Sovereignty in accounting standard-setting — Mr Mackintosh noted that global accounting standards require that all countries adhere to the standards and "resist the temptation to tinker with the standards." He spoke about the endorsement process and engagement outreach programs, ensuring that the IASB is not "passing down diktats from an ivory tower." He reiterated that countries' decisions not to adopt or amend or add a standard means that it is not a global standard anymore.
• Structure — Mr Mackintosh described the how the IASB's structure allows the Board the right balance of legitimacy and efficiency. He talked about the reasons the IASB was set up as a private-sector body and the oversight structure of the organisation.
• Standardisation — Mr Mackintosh explained the challenge of determining what the single, global standards should be. He said "This is significantly complicated by the multitude of different cultural preferences, business practices and accounting traditions that exist in different parts of the world, across the spectrum of developed and emerging economies." 

Please click for access to the full text of the speech on the IASB website.

In its tentative agenda decision, the IFRS IC has indicated that "the addition of pro forma columns to the primary statements would be unlikely to meet [the] requirement [of paragraph 112(c) of IAS 1]".

The FRC are concerned about what is meant by the term "pro forma columns" in this statement.  In particular, many UK preparers present additional columns that, effectively, sub-analyse the IFRS information to analyse results before and after non-recurring, unusual or individually material items.  The FRC do not believe that such a presentation is precluded by IAS 1.

The FRC have requested that, in finalising this agenda decision, the IFRS IC should make it clear that the use of additional columns may be appropriate where they effectively sub-analyse the total IFRS-compliant information by providing additional line items, headings and subtotals, but not where the information presented is hypothetical or otherwise not compliant with IFRSs.

The full response letter is available from the FRC website.

The purpose of the Charter is to establish some key principles of co-operation between the IASB and other accounting standard-setters that are designed to enhance the efficiency and effectiveness of international accounting standard-setting. The overarching principles of the Charter reflect that the parties involved are committed to work together (1) in close cooperation, while respecting each other's independence, (2) transparently and openly, (3) with mutual trust and respect, and (4) with a sense of duty, responsibility and accountability for achieving a shared goal in the public interest.

The Charter defines the following responsibilities:

The IASB stresses that the Charter is consistent with the creation in 2013 of the IASB's Accounting Standards Advisory Forum (ASAF), which serves as a formal platform for technical dialogue between the IASB and representatives of the accounting standard-setting community. The Charter also notes that it is a statement of co-operation that relies on the good faith and best endeavours of the parties and not a binding contractual arrangement.

At the recent IFASS meeting during which the Charter was agreed, the national standard-setters also finalised a 'Model for National Standard-Setters' that is designed to provide a basis for a national standard-setter to maximise its contribution to the quality of general purpose financial reporting by participating in the development of high-quality global accounting standards issued by the IASB. The model sets out concepts that should underlie the activity of accounting standard-setting and the key characteristics to which standard-setters might aspire. It is written primarily for standard-setters in jurisdictions have already adopted IFRSs or are in the process of doing so, but it is noted that the model can also be used by standard-setters in other fields and by bodies that monitor, fund or oversee a standard-setter in order to evaluate its activities.

Please click for the following additional information:

• Press release on the IASB website
• Full text of the Charter on the IASB website
• Paper describing the model for national standard-setters on the AASB website

Based upon their research, CIPFA has identified that “<IR> principles can readily be applied in the public sector, although there are some sector-specific issues to be considered in more detail to facilitate this”.  CIPFA and the IIRC highlight that the new network will help to identify and address these sector-specific issues “and so facilitate the application of <IR> to public sector organisations”. 

CIPFA highlight the following benefits of participation in the network:

Visibility as a global leader in the reporting field

Support through network meetings, forums and similar

Exchange of information on good practice relevant to the sector

Feedback in relation to developing <IR> content

Benefits internally from developing a more integrated approach to management 

The opportunity to help shape a public sector perspective on integrated reporting

Input to the future development of the <IR> Framework.

Participants will be expected to contribute to the cost of running the network, expected to run over two years “covering two reporting cycles 2014/15 onwards”. 

Those interested in applying to join the network should download and complete an application form by 30 May 2014.  Following a review of the expressions of interest, formal invitations to participate in the network will be sent by 25 July 2014. 

The press release, including application form, can be accessed on the CIPFA website.

Tech 09/14BL sets out “best practice in the conduct of a review engagement in the context of a report on the annual statement of service charge expenditure” which must be performed by an independent accountant under the Royal Institute of Chartered Surveyors (RICS) Code of Practice, ‘Service Charges in Commercial Property’ (unless the cost of such a review would be disproportionate to the level of assurance obtained). 

The Technical Release provides guidance on the form of the report to be given and the procedures to be undertaken in making the report.  The Technical Release does not apply to “engagements relating to properties containing residential accommodation (dwellings)”. 

The effective date for the implementation of the guidance is for reports on statements of service charge expenditure for periods starting on or after 1 April 2014 with earlier application encouraged.

TECH 09/14BL can be downloaded from the ICAEW website.