Minutes of UKEB Public Meeting 26 June 2025

Meeting Date/Time: 26 June 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

1. The Chair noted that the meeting was being recorded, and the recording would be published on the UKEB website after the meeting.
2. The Board had received an Education Session on 24 June 2025 on the Post-Implementation Review of IFRS 16: Leases.
3. There were no apologies.
4. The Board noted that there is no Official Observer from the Financial Conduct Authority (FCA) since Lee Piller retired. The UKEB is in discussions with the FCA to secure his replacement.

2. Declarations of Interest

1. The Board noted the following declaration:
   1. Phil Aspin's employer is involved in rate-regulated activities.

3. Administrative Matters

1. The Board approved the minutes of the previous meeting held on 22 May 2025 for publication on the website. (Decision)

Endorsement and Adoption

4. IFRS 18 Presentation and Disclosure in Financial Statements

1. The Board considered a revised version of the full Draft Endorsement Criteria Assessment (DECA) and Invitation to Comment (ITC) in respect of the endorsement assessment of IFRS 18 Presentation and Disclosure in Financial Statements.
2. The Board welcomed the changes reflected in the revised version of the DECA. In finalising the DECA the Board requested the Secretariat make some further revisions, including:
   1. Reflecting the Board's preliminary view that IFRS 18 is not likely to lead to a significant change in accounting practice. The Board also requested adding to the ITC some arguments supporting an alternative conclusion – that IFRS 18 is likely to lead a significant change in practice – to help stakeholders understand the alternative position when developing their responses to the UKEB.
   2. In the long term public good assessment, clarifying the costs and benefits derived from the non-adoption scenario as part of the counterfactual analysis; and indicating that the monetary estimate of implementation costs falls within a range.
3. Subject to the comments made at the meeting, and final approval by the Chair, the Board approved the DECA and ITC for publication on the UKEB website, with a 90-day comment period. (Decision)
4. The Board agreed to publish on the UKEB website, the additional evidence it considered in developing the DECA, namely the results of the Preparer Survey, User Survey and Auditors' questionnaire. (Decision)

5. Summary of Feedback received on the Draft Endorsement Criteria Assessment – Amendments to IFRS 9 and IFRS 7 – Contracts-referencing Nature Dependent Electricity

1. The Board considered the summary of stakeholder feedback received following the UKEB's public consultation on the DECA of whether to adopt for use in the UK Amendments to IFRS 9 and IFRS 7 – Contracts-referencing Nature Dependent Electricity.
2. The Board agreed with the Secretariat's proposed response to the stakeholder feedback received on the DECA. (Decision)
3. The Endorsement Criteria Assessment is scheduled to be discussed by the Board at its 15 July 2025 meeting as part of the adoption package.

Influencing

6. Post-Implementation Review of IFRS 16: Leases

1. The Board considered the Project Initiation Plan (PIP) in response to the IASB's Post-Implementation Review (PIR) of IFRS 16: Leases.
2. The Board noted the limited project scope, which involves limited additional outreach to ensure a proportionate approach to the project, reflecting both the context of the project and feedback received to date from UK stakeholders.
3. The Board approved the PIP, proposing a 45-day comment period for the Draft Comment Letter (DCL). (Decision)
4. The DCL and ITC are scheduled to be discussed by the Board at its 15 July 2025 meeting.

Thought Leadership

7. IASB Fourth Agenda Consultation: Discussion of Approach

1. The Board considered a further paper to inform its initial discussions regarding influencing the IASB's strategy and tentative approach to the Fourth Agenda Consultation.
2. The Board noted the IASB had removed the topic from the ASAF agenda and was considering alternative approaches.
3. The Board discussed the balance of IASB work, the scope of projects to be included in the RFI, the approach to the draft Project Prioritisation Framework and the number and type of tentative projects.
4. The Boad supported the IASB staff's tentative recommendation to consult on three to five major projects in the Request for Information.

8. Intangible Assets

1. The Board received an update on the IASB's research project on Intangible Assets.
2. The Board considered a proposal from the Secretariat to undertake two areas of research to complement the IASB's work:
   1. Develop case studies as a means of exploring users' views on accounting for intangibles, and to test IASB proposals; and
   2. Undertake interviews with UK users of financial information to better understand what information about recognised and unrecognised intangible assets.
3. The Board agreed that a PIP should be developed and presented at a future Board meeting. (Decision)

Monitoring

9. IASB General Update

Rate-regulated Activities

1. The Board considered the IASB's tentative decision, following stakeholder feedback, to omit the minimum discount rate from its forthcoming standard for regulatory assets and regulatory liabilities and was supportive of this approach.
2. The Board discussed the assessment of the expected benefits and costs of the prospective standard.
3. The Board agreed that the UKEB should propose that IASB continue its work on Rate-regulated Activities in its response to the IASB's Fourth Agenda Consultation.

Business Combinations – Disclosures, Goodwill and Impairment

1. The Board noted that the IASB has begun to redeliberate the proposals outlined in its Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment (the ED), published in March 2024. It is anticipated that the IASB's redeliberation will continue into 2026.
2. With respect to some of the proposed amendments to IFRS 3 Business Combinations in the ED, the IASB is consulting further on feedback received in response to the ED and will seek feedback at the upcoming ASAF meeting in July 2025 on two areas of identifying a subset of the most important business combinations. The Board considered firstly the design of a possible rebuttable presumption approach to identifying that subset and, secondly, possible improvements to, or the removal of, the operating profit threshold proposed in the ED, as part of the threshold approach.

Provisions – Targeted Improvements

1. The Board discussed stakeholder feedback received by the IASB on its Exposure Draft Provisions – Targeted Improvements.
2. The Board noted that the IASB will seek ASAF members' views on how to proceed with the project at the ASAF meeting on 8 July 2025. Board members expressed mixed views as to how the IASB should proceed on this project.

Interpretations Committee Update

1. The Board agreed that the UKEB should respond in support of the Interpretations Committee's proposed updates to 10 agenda decisions that contain references to IAS 1 Presentation of Financial Statements once IFRS 18 becomes effective (that is, from 1 January 2027) and IAS 1 is withdrawn, assuming there are no substantive changes to the conclusions once published. (Decision). The Board will consider a PIP and a Final Comment Letter at a future meeting, subject to the publication of the proposed updates by the IASB.
2. The Board agreed that the UKEB will not undertake further work on the matters received by the Interpretations Committee on: Incremental transaction costs (IFRS 9); Assessing Whether to Separate an Embedded Prepayment Option from Host Contract (IFRS 9); and Customer rights in offtake battery energy storage system arrangements. (Decision)

Other projects

1. The Board noted updates on various projects being considered by the IASB, including: Climate-related Risks and Other Uncertainties in the Financial Statements and the list of IASB projects.

10. Advisory Groups Update

1. The Board received an update from the chairs of the Investor Advisory Group, Accounting Firms and Institutes Advisory Group, Preparer Advisory Group (PAG) and the Rate-regulated Technical Advisory Group who provided an
2. overview of discussions at recent meetings for which the minutes were expected to be published after the Board meeting.
3. The Chair of the PAG thanked inaugural members, Chris Buckley and Jo Clube, who were stepping down from the PAG at the end of their appointments.

11. Items for Noting

1. The Board noted the following paper:
   1. Technical Advisory Committee Update.
   2. Sustainability Update.

12. Any other business

1. There was no other business.

The meeting ended at 15:17 hrs.