The Financial Reporting Council (FRC) has released its latest annual review of structured digital reporting, noting improvements in basic reporting practices among UK-listed companies, but highlighting ongoing concerns in more complex areas. 

The review found that several fundamental errors observed in previous assessments in 2022 and 2023 have been addressed.

However, the FRC identified a continued need for improved focus and attention from certain companies and management teams, particularly in more technical or detailed aspects of digital reporting. 

Key issues flagged in the 2024 review include the unnecessary use of custom extensions, with many companies creating bespoke tags when standard ones would suffice. 

Additionally, where extensions are used, they are often not properly anchored, compromising the integrity of the taxonomy structure, the report said.  

The FRC also noted that in some instances, the accounting meaning of selected tags did not accurately reflect the facts reported or did not align with the applicable accounting standards.  

Other technical errors included incorrect signs or scales applied to reported figures, and frequent omissions of mandatory tags, such as details on an entity’s principal place of business or domicile. 

Design and usability concerns remain prevalent, with some companies failing to publish the digital report on their website or offering formats that hinder accessibility and user engagement, the report added. 

Delayed publication and lack of viewer-friendly tagging further limited the usefulness of these digital filings. 

The structured iXBRL format, which underpins Digital Annual Reports, has been a requirement for listed companies in the UK since 2021 under Financial Conduct Authority (FCA) rules. The FRC reviewed filings from FCA-listed companies, drawing on tools developed through the Council’s CODEx project.  

This included the use of a recently launched public viewer tool and a detailed assessment of 25 annual reports submitted to the FCA’s National Storage Mechanism in 2024. 

To address these issues, the FRC has outlined guidance for companies and announced plans to enhance its review process by conducting sample reviews alongside its regular monitoring of annual reports.  

Companies with tagging problems might receive direct communication from the FRC for corrective action. 

FRC Regulatory Standards executive director Mark Babington said: “Digital reporting plays an essential role in enabling efficient access to company data, supporting investment decisions and improving market effectiveness.  

“While we’re pleased to see progress in many areas, our review shows there should be greater focus on specific aspects to ensure digital reports provide maximum value to investors and other stakeholders.” 

In March 2025, the FRC published its Strategy for 2025-28 and its Annual Business Plan and Budget for 2025-26.