Work on a new tool designed to make it easier to examine company data has reached the finish line, with the release of a final report.

Published on 30 May by project leader the Financial Reporting Council (FRC), the report sums up the origins, development and purpose of its game-changing Company and Organisational Data Explorer (CODEx) tool.

The FRC launched the first public trial of the CODEx Digital Reporting Viewer in March, unlocking what it calls “vast repositories” of corporate data for a variety of user groups to access and analyse, free of charge.

Indeed, CODEx could be an important resource for anyone who routinely hunts around for and works with company data.

What is CODEx and which problems does it aim to solve?

In a statement, the FRC explained that the UK is a global leader in the collection of structured company data, with 88% of the 3.1m accounts published annually on the Companies House register available in iXBRL format.

However, it noted that up to now stakeholders have found it a challenge to access and use that information as it was often hived off in regulatory silos and not presented in a form that was easy to view and analyse.

As such, in November 2022, the government granted the FRC almost £800,000 to deliver CODEx, with work commencing the following September. 

Set up as a joint effort with Companies House, the Financial Conduct Authority (FCA), the Charity Commission and HMRC, the project sought to provide users with a public iXBRL viewer that presents tagged data in an easily readable format.

The FRC describes CODEx as a platform enabling users to carry out bulk iXBRL analysis, to identify companies with either specific or outlier attributes.

According to the watchdog, the project has “successfully delivered on its aim to find innovative and cost-effective ways of accessing and using structured accounting and reporting data in the UK”.

How does CODEx work and why is it so useful for finance professionals?

CODEx has two, different interfaces: the Digital Reporting Viewer and a Regulatory Toolkit.

With the former, anyone can access tagged iXBRL reports that a business files with either Companies House or the FCA. All they need to do is type the business’s name or its company registration number into the prompt screen. 

Users can then filter the output by the type of data required and can choose whether to open the relevant report in the Viewer itself, or download it for offline analysis.

When opening a report in the Viewer, users are presented with a breakdown of iXBRL facts pertaining to the business, highlighted in different colours for easy navigation. Users can click on a fact of interest for a deeper dive into the underlying data.

Meanwhile, the Regulatory Toolkit, which is not publicly available, enables its users to explore company data in a far more granular fashion via a series of tabs. For example, the tab for an individual company displays a summary of its activity, plus basic information on its headcount, its market cap and key profit-and-loss metrics.

It also displays a geographical overview of which audit firms are working with which companies, and in which parts of the country. Users can explore that data by either clicking on area tags in an interactive UK map, or by using one of two dropdown menus – one listing company names, the other auditors.

A further screen enables users to assess the prevalence of different accounting standards within specific industries. For example, users can click on ‘insurance’ and examine variations in reporting under a range of different IFRS accounting standards. They can also look into standards adherence at any individual company.

Demonstrating innovation in practice

FRC Executive Director of Regulatory Standards Mark Babington says that the Viewer makes structured reporting data more accessible and transparent, while the Toolkit will enable the watchdog to provide better regulatory and policy insights.

He says: “By regulators working together, we have built an important component that underpins a digital future for UK company reporting, supports growth and demonstrates innovation in practice.”

For Science Minister Lord Vallance, the project channels the aims of the government’s wide-ranging Plan for Change initiative. “Fresh thinking and new regulatory approaches will give confidence to investors, researchers and consumers alike,” he says.

“Developments in digital reporting have the potential for significant effects on UK companies, including the anticipated introduction of mandatory tagging under the Economic Crime and Corporate Transparency Act 2023,” says Sally Baker, ICAEW’s Head of Corporate Reporting Strategy. “ICAEW has identified a need for more widespread understanding of the uses and benefits of taxonomies and tagging. The availability of CODEx is an important first step in the public being able to access and analyse tagged data, but for preparers and others, gaining an understanding of how the Viewer is used, and who by, will be equally important to the future success of digital reporting.”

Tell us about your CODEx experiences

Have you used the Digital Reporting Viewer , either in the course of your work, or for personal interest? If so, ICAEW wants to hear from you. How did you find it? Can you see it becoming an important asset for carrying out your professional duties going forward? Please email your thoughts to crf@icaew.com.