UK nods to tagging in materiality guidance
The UK Financial Reporting Council (FRC) has published insights to help preparers, investors and other report users understand materiality in annual reporting. The guidance responds to a familiar concern: reports have grown longer and more complex as legal requirements and investor demands have piled up, increasing the risk that immaterial information obscures the disclosures that matter.
The guidance includes a set of frequently asked questions and a process entities can adapt, covering how to define the report’s audience, identify and assess what is material, and organise disclosures so the important points are not buried. Connectivity is a theme: the FRC wants annual reports to tell a coherent story, with consistent terminology and metrics and clear signposting between related disclosures.
The FRC also highlights the value of digital tagging in making information more accessible and clarifying what is material to report users, and encourages preparers to consider how their report will be digitally consumed.
Read the guidance here.
