Minutes of UKEB Public Meeting 25 September 2025

Meeting Date/Time: 25 September 2025 at 10:10 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 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 welcomed two newly appointed Board members, Cynthia Alers (Other) and Mark Gregory (Economist), to their first public Board meeting.
3. There were no apologies.

2. Declarations of Interest

1. The Board noted the following declaration:
   • 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 15 July 2025 for publication on the website. (Decision)

Endorsement and Adoption

4. IFRS 19 Subsidiaries without Public Accountability: Disclosures

1. The Board considered sections of the Draft Endorsement Criteria Assessment (DECA) in respect of IFRS 19 Subsidiaries without Public Accountability: Disclosures (the Standard).
2. The Board agreed to streamline the DECA by moving the Section 1 content to an Appendix to the DECA. Section 1 describes UK statutory requirements for adoption of new or amended international accounting standards and the approach to the endorsement criteria assessment. It was noted that the adoption decision, to be included in the final Endorsement Criteria Assessment (ECA), would remain in its current position at the front of the published ECA. (Decision)
3. The Board considered an approach to the technical accounting criteria assessment in line with the Board's expectations for this project. The Board agreed to take a proportionate, 'by exception', approach to the reporting of the technical accounting criteria assessment. This would mean the assessment focused on key areas of disclosure reductions included in the Standard, that are relevant for UK reporters and the users of their financial statements. (Decision)
4. The technical accounting criteria assessment and the long term public good assessment for IFRS 19 will be considered by the Board at its October 2025 meeting.

Influencing

5. IFRS Interpretations Committee Tentative Agenda Decision: Updates to Committee's agenda decisions for IFRS 18

1. The Board considered the Project Initiation Plan (PIP), the draft Final Comment Letter (FCL) and the Draft Due Process Compliance Statement (DPCS) in relation to the IFRS Interpretation's Committee (the Committee) Tentative Agenda Decision: Updates to Committee's agenda decisions for IFRS 18 (Presentation and Disclosure in the Financial Statements). The Board noted that the PIP should clearly explain to stakeholders the Board's reasons for submitting a formal response to the Committee, given that the Board only responds to a limited number of tentative agenda decisions.
2. The Board agreed to simplify the beginning of the FCL, removing standard language to the end of the letter so that the core message of the response comes first.
3. The Board noted that reference should be made in the three documents to the fact that the UKEB's assessment work on whether to adopt IFRS 18 for use in the UK is currently underway.
4. Subject to the comments made at the meeting, and final approval by the Chair, the Board approved:
   • The PIP for publication on the UKEB website. (Decision)
   • The FCL for issue to the IASB and publication on the UKEB website. (Decision)

6. Post-implementation Review of IFRS 16: Leases

1. The Board considered its FCL, Feedback Statement and draft DPCS in response to the IASB's Request for Information for the Post-implementation Review (PIR) of IFRS 16: Leases.
2. The Board agreed that the restructuring of the letter discussed under Item 5 would also apply to this FCL, and to future ones.
3. The Board suggested including a sentence in the FCL to reference the ongoing costs of applying IFRS 16, as highlighted by stakeholders, and that this could be mitigated by simplifying some requirements and/or extending the exemptions currently in IFRS 16.
4. The Board also suggested concerns raised about the interaction between IFRS 15 Revenue from Contracts with Customers and IFRS 16 could be acknowledged.
5. Subject to the comments made at the meeting, and final approval by the Chair, the Board approved the:
   • FCL for issue to the IASB and publication on the UKEB website. (Decision)
   • Feedback Statement for publication on the UKEB website. (Decision)
6. The Board approved the draft DPCS and agreed that the final DPCS would be presented, for noting, at the 30 October Board meeting. (Decision)

Monitoring

7. IASB General Update

a)The Board provided advice to the Chair and Technical Director regarding the issues to be considered at the October Accounting Standards Advisory Forum (ASAF) meeting, recommending a robust and principle-based approach.

Intangible Assets

b)The Board provided comments on the four cases developed by the IASB to progress the Intangibles project. The Board discussed its concerns on the two selected test cases, cloud computing and agile software development, for discussion at the forthcoming ASAF meeting.

Statement of Cash Flows and Related Matters

c)The Board considered the seven examples shared by the IASB, together with the proposed approach to improving the consistent classification of cash flows for discussion at the ASAF meeting. Board members raised concerns that the focus on narrow examples may not address the most significant opportunities to improve the accounting for cash flows.

d)The Board agreed that the Secretariat should consult with the appropriate advisory groups on the examples raised by the IASB (as outlined in Annex 1 and 2 to the paper). The focus should be to identify relevant principles that support the accounting for cash flows. (Decision)

Business Combinations – Disclosures, Goodwill and Impairment

e)The Board considered the questions raised by IASB staff which will be discussed at the forthcoming ASAF meeting. The IASB has been redeliberating the Exposure Draft, Business Combinations – Disclosures, Goodwill and Impairment, and the questions focus on the proposed exemption in IFRS 3 Business Combinations and the proposed simplifications to IAS 36 Impairment of Assets. The Board discussed the questions and provided feedback to inform the UKEB position at the ASAF meeting.

Equity Method of Accounting

f)The Board provided comments on two specific proposals of the Equity Method Exposure Draft on the agenda for the October 2025 ASAF meeting. The two topics were the accounting of acquisition related costs (measurement of the 'cost of an associate') and the presentation of dilution gains and losses.

IFRS Interpretations Committee Update

g)The Board agreed that the UKEB will not undertake substantive work at this time on the Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18). (Decision)

h)The Board agreed that the UKEB will not respond to the Committee's invitation to comment (ITC) on Economic Benefits from Use of a Battery under an Offtake Arrangement (IFRS 16). (Decision)

i)The Board agreed that the UKEB will not respond to the Committee's ITC on Determining and Accounting for Transaction Costs (IFRS 9) and Embedded Prepayment Option (IFRS 9). (Decision)

Other Projects

j)The Board noted updates on various projects being considered by the IASB, including: Financial Instruments with Characteristics of Equity; the IASB's Fourth Agenda Consultation; and the list of IASB projects.

8. Advisory Groups Update

1. The Board received an update from the chairs of the Academic Advisory Group and the Rate-regulated Activities Technical Advisory Group, including an overview of discussions at recent meetings for which the minutes were expected to be published after the Board meeting.

9. Items for Noting

1. The Board noted the following papers:
   • Technical Advisory Committee Update.
   • Sustainability Update.
   • Due Process Compliance Statement: Contracts Referencing Nature Dependent Electricity (Amendments to IFRS 9 and IFRS 7). The document would be updated to reference the dissent by a Board Member towards the end of the process.

10. Any Other Business

1. There was no other business.

The meeting ended at 14:38 hrs.