4.1 Adoption Statement - IFRS 18 Presentation and Disclosure in Financial Statements

1The UK Endorsement Board is designated under regulation 2(1) of The International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609¹ (“the Delegating Regulations") for the purpose of enabling it to exercise functions of the Secretary of State under Chapter 3 of Part 2 of The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685² (“the Regulations").

2The UK Endorsement Board, in exercise of the powers conferred by regulation 6(1) of the Regulations, adopts the following international accounting standard published by the International Accounting Standards Board (IASB) for use within the United Kingdom:

• IFRS 18 Presentation and Disclosure in Financial Statements ("the Standard³").

3This Standard also includes subsequent amendments to the following IFRS Accounting Standards:

• IFRS 1 First-time Adoption of International Financial Reporting Standards
• IFRS 2 Share-based Payment
• IFRS 3 Business Combinations
• IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
• IFRS 6 Exploration for and Evaluation of Mineral Resources
• IFRS 7 Financial Instruments: Disclosures
• IFRS 8 Operating Segments
• IFRS 9 Financial Instruments
• IFRS 10 Consolidated Financial Statements
• IFRS 11 Joint Arrangements
• IFRS 12 Disclosure of Interests in Other Entities
• IFRS 13 Fair Value Measurement
• IFRS 14 Regulatory Deferral Accounts
• IFRS 15 Revenue from Contracts with Customers
• IFRS 16 Leases
• IFRS 17 Insurance Contracts
• IAS 2 Inventories
• IAS 7 Statement of Cash Flows
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 10 Events after the Reporting Period
• IAS 12 Income Taxes
• IAS 16 Property, Plant and Equipment
• IAS 19 Employee Benefits
• IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
• IAS 21 The Effects of Changes in Foreign Exchange Rates
• IAS 24 Related Party Disclosures
• IAS 26 Accounting and Reporting by Retirement Benefit Plans
• IAS 27 Separate Financial Statements
• IAS 28 Investments in Associates and Joint Ventures
• IAS 29 Financial Reporting in Hyperinflationary Economies
• IAS 32 Financial Instruments: Presentation
• IAS 33 Earnings per Share
• IAS 34 Interim Financial Reporting
• IAS 36 Impairment of Assets
• IAS 37 Provisions, Contingent Liabilities and Contingent Assets
• IAS 38 Intangible Assets
• IAS 40 Investment Property
• IAS 41 Agriculture
• IFRIC 1 Changes in Existing Decommissioning, Restoration and Similar Liabilities
• IFRIC 2 Members' Shares in Co-operative Entities and Similar Instruments
• IFRIC 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
• IFRIC 6 Liabilities arising from Participating in a Specific Market—Waste Electrical and Electronic Equipment
• IFRIC 12 Service Concession Arrangements
• IFRIC 14 IAS 19– The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
• IFRIC 16 Hedges of a Net Investment in a Foreign Operation
• IFRIC 17 Distributions of Non-cash Assets to Owners
• IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments
• IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine
• IFRIC 21 Levies
• IFRIC 22 Foreign Currency Transactions and Advance Consideration
• IFRIC 23 Uncertainty over Income Tax Treatments
• SIC-7 Introduction of the Euro
• SIC-10 Government Assistance—No Specific Relation to Operating Activities
• SIC-25 Income Taxes—Changes in the Tax Status of an Entity or its Shareholders
• SIC-29 Service Concession Arrangements: Disclosures
• SIC-32 Intangible Assets—Web Site Costs

4In accordance with regulation 7(1) of the Regulations, the UK Endorsement Board is of the view that:

1. the Standard is not contrary to either of the following principles—
   1. an undertaking's accounts must give a true and fair view of the undertaking's assets, liabilities, financial position and profit or loss;
   2. consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking;
2. the use of the Standard is likely to be conducive to the long term public good in the United Kingdom; and
3. the Standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

5In accordance with regulation 8 of the Regulations, the UK Endorsement Board is of the view that adequate consultation with persons representative of those with an interest in the quality and availability of accounts, including users and preparers of accounts, has been undertaken before the adoption decision.

6The adopted Standard referred to in paragraph 3:

1. must be used for financial years beginning on or after 1 January 2027;
2. may be used for financial years beginning before 1 January 2027. An entity must disclose if it applies this Standard for an earlier period. The initial application date shall be the beginning of a reporting period.

7The text of the Standard and the subsequent amendments to other IFRS Accounting Standards are set out in the annex to this statement.

Approval by the UK Endorsement Board

IFRS 18 Presentation and Disclosure in Financial Statements published by the IASB in April 2024 was approved for adoption by twelve members of the UK Endorsement Board.

10 December 2025

---