The Institute of Chartered Accountants of Scotland (ICAS) has hosted three sessions on the UK government’s plans for a comprehensive reform of corporate reporting, with formal consultations anticipated to commence in 2025.

ICAS has conducted the sessions with its members and the Department for Business and Trade (DBT) to discuss the proposals arising from a recent Call for Evidence.

In these discussions, members highlighted the necessity for a more streamlined corporate reporting framework, which has become overly complex and lengthy, often not meeting the needs of stakeholders.

The review aims to consolidate disclosure requirements and improve regulatory coherence while addressing inconsistencies in reporting standards and exemptions.

The proposed changes focus on producing annual reports that are more concise, relevant, and less dependent on standardised language.

The review will also evaluate whether modifications to the current reporting structure are needed to align with the UK Sustainability Reporting Standards (SRS), which are under review.

Although small and medium-sized enterprises (SMEs) may not be directly impacted, they could face increased data requests from supply chain partners.

ICAS supports the transition towards digital reporting, which encompasses tagging, artificial intelligence, and online platforms, in line with the digital transformation initiatives at Companies House.

The intended reforms aim to reduce repetitive or low-value content, thereby lessening the burden on those preparing reports.

Additionally, the government is considering whether sustainability disclosures should be subject to assurance and, if so, the qualifications required for those providing such assurance.

This inquiry raises critical questions about the necessary skills and standards in the evolving field of sustainability assurance.

ICAS acknowledges the importance of a separate ongoing consultation aimed at developing an oversight framework for sustainability-related financial disclosures, which seeks input on a proposed voluntary registration system for sustainability assurance providers in the UK.

As advancements in sustainability data progress, the new reporting framework will need to accommodate the potential for restating sustainability figures when more accurate information is obtained. ICAS will continue to engage with stakeholders as the DBT prepares for its formal consultation on these proposals in 2025.