The FRC has announced they will be introducing a new suite of taxonomies, just two years after their previous update.
All taxonomies will be updated in the suite, with one exception of the Irish extension, which will remain as the 2019 version. Due to the pandemic and additional financial reporting requirements, there will be several additions/amendments made to the taxonomies.
Changes to the 2021 suite: • Coronavirus – To cover the Coronavirus job retention scheme, additional income-related tags have been added, along with other covid-related grants.
• Off-payroll – To cater for revenue received from off-payroll working and off-payroll working expenses, new tags have been added.
• Pay ratio regulations – All reporting requirements set out in SI ‘The Companies (Miscellaneous Reporting) Regulations 2018’ regarding pay ratio information are now covered by the taxonomy.
• SECR reporting – The SECR taxonomy introduced in 2019 supersedes the greenhouse gas emissions reporting items present in the Directors’ report.
When does the new taxonomy become effective?
The new 2021 taxonomies are scheduled to be enabled by Companies House by April 2021. It’s also been advised that HMRC will be likewise by 21st July 2021. By this time, there will also be a new version of the DPL taxonomy provided.
The FRC have stated that any accounts that include any of the aforementioned taxonomy components, the 2021 taxonomy should be used at the earliest possible opportunity.
What about partially tagged files? The 3 most recent released versions of each taxonomy (2021, 2019 and 2018 versions) with continue to be supported by Companies House, and continue to be accepted until another update is released. Meaning the 2014 taxonomy will no longer be accepted from 1st April 2021.
When will the new Taxonomies be included in CaseWare?
We have commenced work on implementing the new taxonomies and updating the 2019 version to become the ‘older taxonomy’ version. We anticipate that over the next year, we will offer the same support for the previous versions, this way any accounts that may be partially tagged under the 2019 version can be finalised. For any new engagements, the 2021 taxonomy will be the default selection.
The auto-tagging feature will continue to work as with previous versions, for items common to both taxonomies. Newly available taxonomies will feature additional, pre-tagged content where applicable.
CaseWare will make the new update available to users this summer.
If you would like to find out more about the products we offer, then please visit us at CaseWare.co.uk