All You Need to Know about UKSEF Ahead of 2022 Filings
The constant problem surrounding the implementation and use of UKSEF published by the FRC in September 2020 can leave project leaders in a fix. Since it is a related taxonomy to the European single electronic format (ESEF), whether UKSEF is used in the 2022 annual report seems to be a common cause for concern.
In this blog, we demystify this new taxonomy and give you some straight up facts about UKSEF and all that you need to know about it:
- The UKSEF is United Kingdom’s own Inline XBRL format and taxonomy, an extension to the ESEF.
- ESEF was introduced into the regulatory requirements of the UK in 2019. It had the promise of being able to facilitate more digital information than what the ESEF rules stipulated. Therefore, the mandate of ESEF in the UK extended to include two important disclosures to form UKSEF.
- The two additional disclosures within the ambit of UKSEF are:
- Disclosures are pertinent to the Streamlined Energy and Carbon Reporting (SECR) requirement. (can tag it like financial statements.)
- Mention the registered number and the period end date of a company (This ensures that an ESEF annual report will successfully go through the digital gateway at Companies House.)
- UKSEF is a highly feasible mandate as it includes all facets of the requirement stipulated in ESEF Taxonomy.
- UK Department for Business, Energy & Industrial Strategy (BEIS) mentioned that UKSEF also complies with the mandatory requirement of filing with the FCA, rather than just the Companies House. Therefore, it is an acceptable alternative to ESEF for firms in the UK to use.
- However, UKSEF is not a mandatory requirement, and there is no visibility on any impending move towards making it a regulation.
- Preparation for ESEF has to be done before the end of the year and involves process change, intricate planning, controls, and reviews. Deciding on submitting UKSEF is straightforward and does not need prior preparation.
- ESEF is required to be audited. For the UK, however, BEIS has mentioned that it need not audit the ESEF file. Approval is to be sought only for ‘content’ and not tags, and an assurance on the part of auditors will suffice.
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