We welcome the opportunity to comment on the FRC Consultation on the proposed new iXBRL Charity accounts taxonomy.
Our main concern is that the introduction of the taxonomy will create a significant extra administrative burden on the sector which is heavily reliant on volunteers. The extent of this additional burden will vary depending on the complexity of a charity’s activity based reporting. We are also aware of the potential for extra costs being incurred where either investment in tagging software is made or the assistance of professional advisers is required. Given the wide range of charities’ objectives and the activities they undertake, we query the expected benefits to be derived from the use of the taxonomy particularly for some of the users identified in Section 3 of the consultation document (specifically donors, other charities and the public).
Our preference is that if a requirement to complete the taxonomy is established, it is introduced on a staggered basis, similar to when iXBRL was introduced for companies as part of their HM Revenue & Customs filing requirements.
Our responses to the specific questions included in the consultation are set out in Appendix 1.
If you would like to discuss any aspect of this response further please do not hesitate to contact Nick Sladden, Head of Charities on 020 3201 8000.