Minutes of UKEB Public Meeting 30 October 2025

Meeting Date/Time: 30 October 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.

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 declaration:

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 25 September 2025 for publication on the website. (Decision)

Endorsement and Adoption

4. IFRS 18 Presentation and Disclosure in Financial Statements – Summary of Feedback received on Draft Endorsement Criteria Assessment

a) The Board considered the summary of stakeholder feedback received following the UKEB's public consultation on the Draft Endorsement Criteria Assessment (DECA) for IFRS 18 Presentation and Disclosure in Financial Statements. Most of the feedback received was supportive of the Board's assessment.

b) The Board considered the significant comments received on the Technical Accounting Criteria assessment. The Board agreed that no further work should be undertaken in respect of the concerns raised about the classification of income and expenses from investments in associate and joint ventures accounted for under the equity method in the investing category. The Board requested further details on the stakeholder concern relating to the classification of insurance finance income and expense in the operating category, to facilitate a better understanding of this concern. This will help the Board assess at the November 2025 meeting whether the issue merits further consideration as part of the Endorsement Criteria Assessment (ECA). (Decision)

c) The Board agreed to the proposed changes in the Long-Term Public Good (LTPG) assessment, subject to the incorporation of the comments raised during the meeting. (Decision)

d) The Board agreed to make some minor amendments to the discussion of the True and Fair View to reflect the movement of relevant paragraphs from IAS 1 to IAS 8.

e) The Board agreed with the proposed assessment in the ECA of whether IFRS 18 is likely to lead to significant change in accounting practice.

f) The Board agreed with the recommended actions for other feedback received (which focused on concerns that will not lead to changes to the ECA).

g) The Board agreed that the adoption package can be brought for approval to the November 2025 meeting, ahead of the original timeline. A revised ECA will be presented to the Board as part of this package. (Decision)

5. IFRS 19 Subsidiaries without Public Accountability: Disclosures

a) The Board considered sections of the IFRS 19 Subsidiaries without Public Accountability: Disclosures DECA covering the Technical Accounting Criteria (TAC) assessment (TAC) and the LTPG assessment.

b) The Board agreed with the list of key aspects identified in the TAC assessment and went on to request additional key aspects, covering critical disclosures in some IFRS Accounting Standards, to be assessed.

c) On the LTPG assessment, the Board noted that the DECA should better explain how costs and benefits are allocated between subsidiaries, whether in the UK or overseas, and their respective groups.

d) The Board considered the Secretariat's proposal to include a Legal Appendix to the published text of the UK-adopted Standard, considering any interaction between the Companies Act 2006 definition of 'public interest' and the definition of 'public accountability' in the Standard. The Board asked the Secretariat to gather further information and agreed to revisit the issue. (Decision)

e) The complete DECA will be presented to the Board at the November 2025 meeting for approval and issued for consultation, in line with the project timeline.

Thought Leadership

6. Statement of Cash Flows and Related Matters

a) The Board considered the UKEB Secretariat's updated draft response to the IASB staff's questions put to IFRS Accounting Standards Advisory Forum members on 2 October 2025, regarding the IASB's approach to improving consistent classification of cash flows.

b) The Board noted the importance of maintaining a principles-based approach. In addition, Board members reinforced the need for: transparency; better disaggregation; enhanced cohesiveness in the financial statements; supplementary disclosures, including acquisition-related disclosures, such as net debt acquired; and improved disclosure of supply chain financing and factoring.

c) The Board suggested the covering letter to the UKEB response reinforce the UKEB's research findings, including the proposal for a cohesiveness principle and supplementary disclosures, such as a net debt reconciliation.

d) The Board discussed non-cash items and noted that a solution for better disclosure of such items is a priority. In particular, the Board noted the need to address classification challenges where the underlying factor for inconsistent classification arises from the initial transaction being a non-cash transaction.

e) Subject to the comments made at the meeting, and final review by the Chair, the Board approved the response to the IASB staff. (Decision)

7. Intangible Assets

a) The Board considered a Project Initiation Plan (PIP) for a research project on accounting for Intangible Assets.

b) The Board supported a principles- and case study-based approach as a means of exploring users' views on accounting for intangibles and to test future IASB proposals regarding recognition, measurement and disclosure. The importance of clear objectives and research outcomes was noted.

c) 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)

Monitoring

8. IASB General Update

Provisions – Targeted Improvements

a) The Board noted that the IASB commenced redeliberation of the proposals in its Exposure Draft Provisions – Targeted Improvements. At the September 2025 meeting, the focus of the IASB redeliberation was the proposed amendments on discount rates and related requirements (that is, related disclosures and interaction with IFRS 3 Business Combinations).

Rate-regulated Activities

b) The Board noted that the IASB will discuss some sweep issues at its October meeting – with papers on recognition conditions and inflation adjustments. A detailed update will be provided at the November 2025 UKEB meeting.

Financial Instruments with Characteristics of Equity

c) The Board provided comments on the IASB's tentative decisions on reclassification of financial liabilities and equity instruments and shareholder discretion. The Board questioned the IASB's decision not to permit reclassification from equity to liability and questioned whether the IASB had clarified if this would give rise to derecognition and re-recognition.

IFRS Interpretations Committee Update

d) The Board agreed that the Secretariat should develop a potential response in relation to the IFRS Interpretations Committee's Tentative Agenda Decision: Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18). The response will be brought for consideration at its November 2025 meeting, which, if the Board agrees to issue a response, would be in time for the IFRS Interpretations Committee's comment deadline of 25 November 2025. (Decision)

e) The Board agreed that the UKEB will not undertake substantive work at this time on the other matters received by the IFRS Interpretations Committee: Assessment of 'specified main business activity' in separate financial statements of a parent entity (IFRS 18), Classification in profit or loss of gains and losses on derivatives economically hedging a net exposure (IFRS 18), Fair presentation and compliance with IFRS Accounting Standards (IAS 1); and Scope of the requirements in paragraph 83 of IFRS 18. (Decision)

Other Projects

f) The Board noted updates on various projects being considered by the IASB, including: Amortised Cost Measurement; Business Combinations Disclosures, Goodwill and Impairment; Statement of Cash Flows and Related Matters; the IASB's Fourth Agenda Consultation; the IASB Workplan; and the list of IASB projects.

9. Advisory Groups Update

a) The Board received an update from the chair of the Preparer Advisory Group, including an overview of the discussion at its recent meeting for which the minutes were expected to be published after the Board meeting.

10. Items for Noting

a) The Board noted the following papers:

1. Technical Advisory Committee Update.
2. Sustainability Update.
3. Due Process Compliance Statement: Post-Implementation Review of IFRS 16 Leases.
4. Due Process Compliance Statement: IFRS Interpretations Committee Tentative Agenda Decision: Updates to Committee's agenda decisions for IFRS 18.

11. Any Other Business

a) There was no other business.

The meeting ended at 14:13 hrs.