Minutes of UKEB Public Meeting 22 May 2025

Meeting Date/Time: 22 May 2025 at 10:00 hrs Meeting Location: 1 Harbour Exchange, Harbour Exchange Square, London, E14 9GE

The recording of the meeting and the agenda papers have been made available on the UKEB's website.

PRESENT:

1. Welcome and Apologies

a) The Chair noted that the meeting was being recorded, and the recording would be published on the UKEB website after the meeting.

b) There were no apologies.

2. Declarations of Interest

a) The Board noted the following declarations of interest:

i. Phil Aspin's employer is involved in rate-regulated activities.

3. Administrative Matters

a) The Board approved the minutes of the previous meeting held on 28 March 2025 for publication on the website. (Decision)

Endorsement and Adoption

4. IFRS 18 Presentation and Disclosure in Financial Statements - Draft Endorsement Criteria Assessment

a) The Board considered the revised long-term public good assessment of the Draft Endorsement Criteria Assessment (DECA) of IFRS 18 Presentation and Disclosure in Financial Statements following comments made at the March 2025 Board meeting.

b) The Board welcomed the changes made to Section 4 of the DECA relating to improvements to financial reporting.

c) Consideration was given to the analysis of costs and benefits and the wider economic effects reported in Section 4 of the DECA. The following points were raised during the discussion:

i. The quantitative estimate of implementation costs comprises both monetary costs and staff time reallocation (opportunity costs).

ii. The Board requested clearer signposting of the costs attributable to each category

iii. The section considering evidence from small and medium-sized entities (SMEs) should acknowledge that outreach was with listed companies that have small and medium-capitalisation rather than with traditional SMEs.

iv. The cost of capital analysis should provide more contextual information via clearer narrative explanation.

d) Subject to the comments made at the meeting, the Board approved the changes made to Section 4 of the DECA. (Decision)

e) The Board agreed that the agenda decisions identified by the Interpretations Committee (IFRIC) that reference IAS 1 Presentation of Financial Statements do not raise significant issues requiring further consideration for the endorsement process. (Decision) However, it was noted that the withdrawal of one of the agenda decisions on Presentation of Liabilities or Assets Related to Uncertain Tax Treatments (September 2019) may potentially impact existing practice. The UKEB Secretariat will discuss this with the IASB Staff and update the Board accordingly.

f) The Board noted that the full text of the DECA will be presented for approval at the meeting on 26 June 2025.

Thought Leadership

5. Statement of Cashflows and Related Matters

a) The Board considered the summary of UKEB research findings on the Statement of Cashflows and Related Matters project reflecting the three papers previously considered by the Board. It also considered an updated Project Initiation Plan (PIP) to undertake further research.

b) Subject to the comments made at the meeting, the Board:

i. agreed (subject to final approval by the Chair) to publish the research summary, together with the final versions of the three individual research papers as appendices. (Decision)

ii. approved the updated PIP, including the further research approved by the Board at the 28 March 2025 meeting, for publication on the UKEB website. (Decision)

c) The Board noted that in line with the updated PIP, the Secretariat will continue the research work and stakeholder consultation. A draft research paper on useful disclosures (on the face of the statement of cash flows or in the notes to the financial statements) that also improve the cohesiveness of the financial statements would be considered by the Board at its July 2025 Board meeting.

6. IASB Fourth Agenda Consultation

a) The Board considered a paper to inform its initial discussions regarding influencing the IASB's strategy and approach to its Fourth Agenda Consultation. The UKEB Secretariat had sought early views from Board Members, UKEB Advisory Group and Working Group members and other National Standard Setters via meetings and surveys to inform the paper.

b) The Board discussed potential alternative approaches, the practical application of the IASB's draft Project Prioritisation Framework and how the IASB could consider connectivity with the ISSB in its Agenda Consultation.

c) Board Members also discussed the implications for standard setting arising from a carbon constrained economy.

Monitoring

7. IASB General Update

Climate-related Risks and Other Uncertainties in the Financial Statements

a) The Board considered an update of the discussions at the IASB's 20 May 2025 meeting on the project. The Board advised on the key points it wished to raise to the IASB at the ad hoc Accounting Standards Advisory Forum (ASAF) meeting on 28 May 2025.

Updating IFRS 19: Subsidiaries without Public Accountability: Disclosures

a) The Board considered the IASB's tentative decision not to develop reduced disclosure requirements for the forthcoming IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities (RARL Standard). The Board continued to support the recommendation in the UKEB's Final Comment Letter i.e. reduced disclosure requirements to be developed by the effective date of the forthcoming RARL Standard.

Interpretations Committee Update

b) The Board agreed that the UKEB will not undertake further work at this time on the matters received but not yet presented to the Interpretations Committee in relation to Incremental Transaction Costs. (Decision)

c) The Board noted that further work was to be undertaken by the IFRIC on Assessing Whether to Separate an Embedded Prepayment Option from Host Contract. The Board would be provided with an update at the 26 June 2025 meeting.

Other projects

d) The Board noted updates on various projects being considered by the IASB, including: Business Combinations-Disclosures, Goodwill and Impairment, the Post-Implementation Review of IFRS 16 Leases, and the list of IASB projects.

8. Advisory Groups Update

a) The Board received an update from the Chair of the Academic Advisory Group (AAG), who provided an overview of discussions at a recent meeting for which the minutes were expected to be published after the Board meeting.

b) The Chair of the AAG thanked Hafez Abdo and Alan Jagolinzer who were stepping down from the AAG as their terms have ended.

9. Items for Noting

a) The Board noted the following papers:

i. Technical Advisory Committee Update.

ii. Sustainability Update.

iii. Due Process Compliance Statement: Amendments to the Classification and Measurement of Financial Instruments.

iv. Due Process Compliance Statement: IFRS Foundation Due Process Handbook.

10. Any other business

a) The Chair thanked Lee Piller for his time as the Financial Conduct Authority's Official Observer and wished him well on his retirement.

b) There was no other business.

The meeting ended at 14:20 hrs.