Minutes of UKEB Public Meeting 15 July 2025

Meeting Date/Time: 15 July 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 11 July 2025 on IFRS 19 Subsidiaries without Public Accountability: Disclosures.
3. The Board noted apologies from Owen Glaysher.

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 26 June 2025 for publication on the website, subject to minor amendments. (Decision)

Endorsement and Adoption

4. Contracts Referencing Nature-dependent Electricity (Amendments to IFRS 9 and IFRS 7)

1. The Board considered and approved, subject to final review by the Chair, the Endorsement Criteria Assessment (ECA), the Feedback Statement (FBS) and the (Draft) Due Process Compliance Statement (DPCS) for Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity (the Amendments).
2. The Board considered the technical accounting criteria assessment section of the ECA. In discussion, one Board member was of the view that the Amendments to IFRS 9 do not satisfy the technical accounting criteria, in particular, in relation to the own-use amendments. The Board member outlined the rationale for his conclusion and agreed to provide a written statement of dissent for publication.
3. It was agreed that the Chair, along with the UKEB Technical Director, would consider whether changes were required to any documents in the Adoption Package to reflect the discussion at the meeting. It was agreed that the ECA, FBS and the approach to publishing the dissent would be circulated to the Board together with the electronic voting forms, to be sent to Board members to provide their written vote.
4. Eleven of the 12 Board members present at the meeting voted to tentatively approve the Amendments for use in the UK. One member tentatively voted against the Amendments to IFRS 9 but confirmed his support for the Amendments to IFRS 7. (Decision)
5. The Board will be issued with ballots, together with the other relevant documents, to provide their formal written votes. The finalisation of that formal written vote will commence the process for publication of the Amendments in line with the Board's Terms of Reference.
6. The Board agreed that the final DPCS would be presented, for noting, at the 25 September 2025 Board meeting. (Decision)

5. IFRS 19 Subsidiaries without Public Accountability: Disclosures

1. The Board considered a Project Initiation Plan (PIP) to assess whether to adopt, for use in the UK, IFRS 19 Subsidiaries without Public Accountability: Disclosures. The endorsement assessment will include the Standard, the forthcoming Amendments and the issued consequential amendments. The effective date for IFRS 19, including all the amendments, is 1 January 2027, with early application permitted.
2. Subject to the comments made at the meeting, the Board approved:
   1. The PIP for publication on the UKEB website. (Decision)
   2. Annex 1 of the PIP, An overview of the UK Accounting Framework and overarching differences between IFRS 19 and FRS 101, for publication on the project webpage. (Decision)

6. Endorsement: Long term public good assessment – Cost of capital methodology

1. The Board considered a paper setting out the UKEB's approach to estimating the amount of indirect monetary benefits associated with the implementation of IFRS Accounting Standards in the UK to demonstrate the plausibility of preparers recovering their implementation costs in the long run. The paper is based on available research, making use of the latest market data.
2. The Board noted that publishing it would enhance transparency for UKEB stakeholders and provide more clarity on one of the tools used to provide evidence supporting the endorsement of standards.
3. Subject to the comments made at the meeting, the Board agreed to publish the cost of capital methodology on the UKEB website. (Decision)

Influencing

7. Post-implementation Review of IFRS 16: Leases

1. The Board considered the Draft Comment Letter (DCL) and related Invitation to Comment (ITC) in response to the IASB's Request for Information (RFI) for the Post-implementation Review of IFRS 16: Leases. The Board noted the IASB's comment deadline of 15 October 2025.
2. The Board noted the overview of stakeholder responses to the preparer survey. The Board requested that the DCL provide a balanced view, balancing stakeholder views with the judgement and the views of the UKEB. In addition, the letter should highlight solutions that do not lead to further changes for stakeholders, e.g. encouraging the application of materiality to existing requirements in the Standard rather than suggesting a widening of the exemptions currently in IFRS 16.
3. Subject to the comments made at the meeting, and final approval by the Chair, the Board approved the DCL and ITC for publication, with a 45-day comment period. (Decision)

Thought Leadership

8. Statement of Cash Flows and Related Matters: UK Users' views on ways forward

1. The Board considered the fourth in a series of research papers UK users' views on ways forward, relating to the UKEB research project on the Statement of Cash Flows and Related Matters. The research paper covers potential alternative presentation formats and supplementary disclosures. It notes that UK users who took part in the research consider that the IASB should undertake targeted improvements to the requirements in IAS 7 Statement of Cash Flows to address their main concerns.
2. The paper highlighted the priority for UK users – a mandatory net debt reconciliation – and that they value improvements to the cohesiveness between financial statements. The paper highlighted suggestion from users that an "information principle” is introduced, leading to companies providing more complete and transparent disclosures that would enable users to link between the primary financial statements and between the notes to the accounts. The Board discussed the merits of the proposals, agreeing with most but considered that what the paper termed as an "information principle” was better referred to as a “cohesiveness principle”.
3. In discussion, the Board suggested distinguishing between non-cash transactions (such as the share-based payments) and other non-cash items (such as foreign exchange movements and fair value adjustments) and allocating different weighting to them.
4. The Secretariat agreed to continue to liaise with the IASB project team to influence other areas of work and convey the importance of net debt disclosures for users.
5. The Board noted the IASB's project update as outlined in Appendix B.
6. Subject to the comments made at the meeting, the Board agreed that a final version of the research paper should be published on the UKEB website. (Decision)

Monitoring

9. IASB General Update

Amortised Cost Measurement

1. The Board was provided with an update on the IASB's Amortised Cost Measurement project. At its June 2025 meeting, the IASB decided to move the project from its research to its standard-setting programme, following IASB stakeholder feedback regarding the root causes of diversity in the application of the amortised cost measurement requirements in IFRS 9 Financial Instruments.
2. The Board was also noted an update on stakeholder outreach undertaken by the UKEB Secretariat and the feedback received to date.

Interpretations Committee Update

1. The Board noted that a Final Comment Letter will be presented at the 25 September 2025 Board meeting following the publication of the Interpretation Committee's 10 Tentative Agenda Decisions in relation to IAS 1 Presentation of Financial Statements¹.

Other projects

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

Other items

1. The Board thanked Peter Drummond, Senior Project Director in the Secretariat team, for his contributions to the UKEB over the past four years and wished him well on his retirement.

10. Items for Noting

1. The Board noted the following papers:
   1. Technical Advisory Committee Update.
   2. Sustainability Update.
   3. Advisory Groups Update.

11. Any other business

1. The Board noted that this was Katherine Coates' and Robin Cohen's last Board meeting as their terms end on 31 August 2025. The Board conveyed its appreciation for their valuable contribution to UKEB's achievements to date.
2. The Board also noted that it was Pauline Wallace's last Board meeting as Chair before her term ends on 10 September 2025. The Board agreed that Pauline's leadership, expertise and unwavering commitment have been instrumental in shaping the UKEB from its inception.

The meeting ended at 14:30 hrs.