FRC Issues New Guidance to Boost Investor Use of Inline XBRL

FRC Issues New Guidance to Boost Investor Use of Inline XBRL

By Prathamesh 8 January, 2024

The UK’s Financial Reporting Council (FRC) has released new recommendations for companies responsible for reporting in Inline XBRL to the UK’s National Storage Mechanism. The guidance is aimed at optimising reporting to meet the needs of investors and other users.

Independent research commissioned by the FRC shows a growing trend of investors directly using structured Inline XBRL data, with 36% now declaring their direct use. This underscores the utility of XBRL data for a broad user base and highlights the need for management to have proper oversight and controls over digital disclosures.

The FRC’s guidance includes basic suggestions such as scale factors, using the correct sign, and avoiding inappropriate extension tags. It also notes an increased voluntary adoption of “Native XHTML” tagging approaches, which enhance the usefulness of narrative consumption and analysis.

The guidance reminds UK issuers that management is accountable for their digital disclosures and should devote the same level of care and attention to their XHTML Annual Financial Reports (AFRs) as they do to their PDF or printed AFRs. This resource is highly recommended for issuers and software vendors worldwide.

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