A taxonomy is a classification system of some kind of knowledge or business domain. The content of the IFRS Taxonomy is designed to accurately reflect the presentation and disclosure requirements of the Standards as issued by the IASB. Its content also includes elements from the accompanying materials to the Standards (Implementation Guidance and Illustrative Examples) and elements for disclosures that are not required, but that are commonly reported in practice by entities (Common Practice).
The IFRS Taxonomy Updates occur throughout the year in line with the publication of new or amended Standards issued by the IASB. Updates may also be released as a result of common practice projects or technology updates. Each year an annual compilation of all Updates is produced (the Annual IFRS Taxonomy).
The IFRS Taxonomy is developed through a formal system of due process. This ensures transparency and compliance with best practice, and also provides quality assurance and opportunities to engage with stakeholders.