UKEB Annual Board Effectiveness Review 2025

UKEB UK Endorsement Board UK Accounting Standards Endorsement Board (Summary Findings)

1 Introduction

The UK Accounting Standards Endorsement Board (‘UKEB') was established to perform certain functions relating to the adoption of International Financial Reporting Standards as developed by the International Accounting Standards Board, for use in the UK, and to contribute, on behalf of the UK, to the development of a single set of international accounting standards.

The UKEB's mission is to serve the UK long-term public good by leading the development and synthesis of UK views on financial reporting and representing them in the international arena, ensuring that the UK's voice is influential in the development of high-quality international accounting standards that are suitable for adoption in the UK. The UKEB is committed to performing its functions, and acting at all times, in accordance with its four guiding principles and the seven principles of public life. These core values are intrinsic to all of UKEB's activities.

The UKEB Board completed its first Board Effectiveness Review in 2022, at the end of its first year of operation, and committed to completing a review annually thereafter. The primary outcome of the 2024 Board Effectiveness Review was a focus on Board succession planning, given the need to recruit a new Chair and manage a number of Board member changes. Each action was completed successfully, that is, on time and ensuring no disruption to the ongoing activities of the Board or the wider organisation.

2 Review Process

This year's review reinforces the core findings of previous reviews, in terms of recognising the Board's success in achieving its strategic objectives and having done so in a way that held true to UKEB's core values.

The findings also reflect a desire to step back and take stock, at the end of UKEB's fourth year of operation. This will allow the Board, under its new Chair, to consider how UKEB's experiences to-date can inform further development and streamlining of its work, underpinned by its continuous improvement ethos and focus on ensuring resources are deployed to maximum effect.

The Action Plan focuses on four key categories: Board succession planning; strategy development; stakeholder engagement and influencing; and resource management and prioritisation. The Board is committed to ensuring effective and timely delivery of the plan.

The objective of the review was to allow the Board an opportunity to consider, and obtain feedback on, what is working well and which areas require further focus and development. The Board is committed to ensuring that it achieves its strategic objectives with a clear focus on its core values, best practice and continuous improvement.

The review began in January 2025 and the final report was submitted for approval at the May Board meeting. The principal output is an Action Plan, approved by the Board, and an agreed process for tracking and execution to ensure timely completion.

The review focused on the four core areas of: Board governance and accountability; culture and composition; Secretariat support; and leadership. Feedback was received from Board members, Secretariat and Official Observers via a questionnaire which incorporated a combination of open and closed questions. Each of the members also attended two 1-1 meetings: one with the Chair, for a broad discussion across all areas except Board leadership, and another with a member to whom the Chair had delegated responsibility for leading the review of Board leadership. Both the UKEB Operations Director and Technical Director also attended a 1-1 meeting with that member.

In addition to the Board members, both the Secretariat and Official Observers were key participants in the review. The Secretariat provides the day-to-day technical and operational support required by the Board as it works to achieve its objectives. The Official Observers attend UKEB's public Board meetings where they have speaking rights and may offer technical and policy insight on the implications of new or amended IFRS accounting standards relevant to their areas of expertise. Official Observers come from five relevant public sector organisations: The Department for Business and Trade; Financial Reporting Council; His Majesty's Revenue and Customs; Bank of England and Financial Conduct Authority.

3 Summary of Findings

The findings of this 2025 Board Effectiveness Review are unequivocally positive across all areas and reflect not only the Board's success in achieving its strategic objectives, as UKEB's fourth year of operation draws to a close, but also its ongoing commitment to UKEB's core values. The detailed analysis of questionnaire feedback is positive across each of the four areas: Board governance and accountability, culture and composition, Secretariat support and leadership.

Further detail obtained from the questionnaires' open-ended questions and 1-1 discussions supports this positive position whilst also highlighting a desire to use the experiences and lessons learnt from the past four years to identify opportunities for further development and process streamlining.

3.1 Board Governance and Accountability

The extent to which the Board understands its role and responsibilities and the quality of debate and challenge offered by members, to ensure effective decision-making, were noted as particularly strong areas. The Board's input to, and support for, the UKEB's Advisory Groups was also highlighted as an area of positive impact.

Further review of operational due process, to identify any areas for further development and streamlining, and the Board's ongoing focus on resource prioritisation were noted as being important factors in ensuring the most effective use of UKEB's finite resource.

The Board has submitted its annual report to the Financial Reporting Council, for the year to 31 March 2025, confirming that it has fulfilled its governance and due process responsibilities in all respects. The feedback from this Board Effectiveness Review supports the positive outcomes articulated in that annual report.

3.2 Board Culture and Composition

The ongoing strong Board culture of collegiate and collaborative engagement was noted. All Board meeting attendees (Board members, Secretariat and Official Observers) are afforded the opportunity to speak and are actively listened to. These are both recurring themes that have been highlighted in previous reviews. There was also a sense that, whilst Board meeting agendas continue to be full, Board time was being managed effectively.

The importance of maintaining the Board's strong culture was referenced in the context of the upcoming change of Chair, in September, in addition to a number of Board member changes that will take place in the period up to March 2026. An effective Chair handover process, and member onboarding and induction, will be key to ensuring successful Board succession.

3.3 Board Secretariat Support

As in previous years, the Board continues to regard the support it receives from the Secretariat as high quality. Members recognised the direct link between the strength of Secretariat support it receives and its ability to effectively exercise its responsibilities. The timeliness with which Board papers are received was also noted and appreciated.

Members highlighted the importance of effective resource management and process streamlining and will continue to work with the Secretariat to identify areas for further development. The Board is keen to incorporate the experiences and lessons learnt from the past four years to enhance and further streamline UKEB's operating framework.

3.4 Board Leadership

There was a strong message from review participants that the Chair has been a key driving force in moving UKEB from its start-up position in 2021 to the mature, well respected and influential organisation that it is today. The Chair's leadership qualities were positively scored across all areas by Board members, Secretariat and Official Observers.

Internally, the Chair has led by example in setting the tone for a collegiate and respectful Board culture and setting the high standards that UKEB delivers to. Externally, the Chair has led UKEB's influencing activities in a way that has helped to cement UKEB's reputation as a respected standard setter.

Ahead of the Chair's term ending on 10 September, it will be of critical importance that there is an effective handover to the new Chair.

4 Key Areas of Focus and Action

The review findings identified areas for additional focus across four categories: Board succession planning; strategy development; stakeholder engagement and influencing; and resource management and prioritisation.

An Action Plan, summarising the deliverables to address the areas identified for additional focus, has been developed. The Action Plan will incorporate action owners and delivery timelines and will be monitored by the Board through to completion.