Feedback Statement - IFRS 18 Presentation and Disclosure in Financial Statements
Endorsement Criteria Assessment (ECA) December 2025
The UK Endorsement Board (UKEB) is responsible for endorsement and adoption of IFRS for use in the UK and therefore is the UK's National Standard Setter for IFRS. The UKEB also leads the UK's engagement with the IFRS Foundation on the development of new standards, amendments and interpretations.
- Foreword
- Purpose of this Feedback Statement
- Description of IFRS 18 - overall
- Description of IFRS 18 – main requirements
- Stakeholder feedback
- UKEB consultation on the [Draft] ECA
- Overall Assessment
- Detailed assessment - glossary
- Detailed assessment – TAC (1)
- Detailed assessment - TAC (2)
- Foreword
- Purpose of this Feedback Statement
- Description of IFRS 18 - overall
- Description of IFRS 18 – main requirements
- Stakeholder feedback
- UKEB consultation on the [Draft] ECA
- Overall Assessment
- Detailed assessment - glossary
- Detailed assessment – TAC (1)
- Detailed assessment - TAC (2)
- Introduction
- Foreword
- Purpose of this Feedback Statement
- Description of IFRS 18 - overall
- Description of IFRS 18 – main requirements
- Stakeholder feedback
- UKEB consultation on the [Draft] ECA
- Overall Assessment
- Detailed assessment - glossary
- Detailed assessment – TAC (1)
- Detailed assessment - TAC (2)
Foreword
“The UK Endorsement Board is grateful for our ongoing dialogue with stakeholders, and we have welcomed their input to our deliberations regarding IFRS 18.
That input has helped test our thinking and our confidence that we have considered appropriately all relevant issues in the context of our statutory duties. It has thus played an important role in our final adoption decision."
Paul Lee, Chair, UK Endorsement Board
Purpose of this Feedback Statement
This Feedback Statement presents the views of UK stakeholders received during the UKEB's public consultation on the [Draft] Endorsement Criteria Assessment (ECA) of IFRS 18 Presentation and Disclosure in Financial Statements and, where relevant, explains how the UKEB has addressed those views in the final ECA.
Description of IFRS 18 - overall
IFRS 18 Presentation and Disclosure in Financial Statements was issued by the IASB in April 2024. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted.
IFRS 18 is a new IFRS Accounting Standard aimed at improving how entities communicate their financial performance in their financial statements and replaces IAS 1 Presentation of Financial Statements.
The IASB developed IFRS 18 in response to strong demand from stakeholders, particularly from users of financial statements, for improvements to the reporting of financial performance. Many requirements from IAS 1 were incorporated into IFRS 18 unchanged or with minor revisions.
IFRS 18 sets out general presentation and disclosure requirements that apply across the primary financial statements and the notes. IFRS 18 also makes consequential amendments to other IFRS Accounting Standards.
Description of IFRS 18 – main requirements
| Category | Main requirements |
|---|---|
| Specified categories and required subtotals in the statement of profit or loss | Presentation of two new defined subtotals in the income statement—operating profit and profit before financing and income taxes and defined categories (operating, investing and financing, income taxes and discontinued operations). |
| Disclosures about management-defined performance measures (MPMs) | Subtotals of income and expenses, other than subtotals specified by IFRS Accounting Standards, that an entity uses: - In public communications outside financial statements. - To communicate to users of financial statements management's view of an aspect of the entity's financial performance. An entity will be required to provide a reconciliation between these measures and totals or subtotals specified by IFRS Accounting Standards (including a requirement to disclose the effects on tax and non-controlling interests of the adjustments made in calculating these measures). This information is disclosed in a single note in the financial statements. |
| Requirements on aggregation and disaggregation | Enhanced general principles for aggregation and disaggregation and specific requirements for disaggregation of ‘other’ balances, presentation of operating expenses in the income statement and disclosure of specified operating expenses by nature included in each function line item. |
| Limited changes to the statement of cash flows | IFRS 18 requires the use of the operating profit or loss subtotal as the starting point for the indirect reconciliation of cash flows from operating activities and removes presentation alternatives for cash flows related to interest and dividends paid and received. |
Stakeholder feedback
Prior to publishing the [Draft] ECA, the Board gathered stakeholder feedback from all relevant stakeholder categories and incorporated it into the [Draft] ECA. Engagement included:
- UKEB advisory and working group meetings (the Preparer Advisory Group, the Accounting Firms and Institutes Advisory Group, the Investor Advisory Group, the Academic Advisory Group and the Financial Instruments Working Group).
- Surveys (preparers and users), questionnaire to auditors, webinar polls and qualitative interviews.
Following publication of the [Draft] ECA, stakeholder engagement activities included:
- Public consultation on the [Draft] ECA. The [Draft] ECA was published for consultation for 90 days, between 9 July 2025 and 7 October 2025.
- Promotion of the IFRS 18 [Draft] ECA consultation through News Alerts, LinkedIn posts, the UKEB website and targeted emails to UK stakeholders.
UKEB consultation on the [Draft] ECA
- Ten formal responses from stakeholders were received.
- Stakeholder submissions received were published on the UKEB website.
- All stakeholder comments and views were considered in reaching the UKEB's final assessment of IFRS 18.
| Stakeholder type | Number of formal responses |
|---|---|
| Accounting firms | 5 |
| Preparers | 2 |
| Investor representative body (user of accounts) | 1 |
| Professional body | 1 |
| Individual | 1 |
| Total | 10 |
Overall Assessment
Respondents to the [Draft] ECA generally concurred with the UKEB's assessment based on the adoption criteria in paragraph 1 of Regulation 7 SI 2019/685 and are supportive of the adoption of IFRS 18.
Detailed assessment - glossary
The remainder of this feedback statement makes use of the following acronyms and abbreviations:
- TAC: Technical Accounting Criteria
- LTPG: Long Term Public Good
- True and Fair: True and Fair View Assessment
- Sig. Change: Significant Change in Accounting Practice
Detailed assessment – TAC (1)
Technical Accounting Criteria Assessment (Section 3)
| UKEB Tentative Assessment | Stakeholder Views | UKEB Final Assessment |
|---|---|---|
| The [Draft] ECA tentatively concluded that IFRS 18 meets the criteria of relevance, reliability, understandability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by Regulation 7(1) of SI 2019/685. | Nine respondents (six from accounting firms and a professional body, one preparer, one user and one individual) agreed with the UKEB's tentative conclusion in the [Draft] ECA. A preparer from an insurance entity raised concerns that the requirement to classify income and expenses from investments in associates and joint ventures accounted for under the equity method in the investing category will not meet the criterion of relevance. | No further work was undertaken as this concern has already been covered as part of the assessments in the ECA (paragraphs B3–B18). |
Detailed assessment - TAC (2)
Technical Accounting Criteria Assessment (Section 3) – Continued from previous page
| UKEB Tentative Assessment | Stakeholder Views | UKEB Final Assessment | |:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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Project Type: Endorsement and adoption
Project Scope: Significant
Status: Approved
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**CORRECT:**
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Project Type: Endorsement and adoption
Project Scope: Significant
Status: Approved
## Executive Summary
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IMAGE REPORT: EXTRACTED IMAGES: - Page 4: Headshot of a man with glasses, wearing a suit and tie, against a gray background. URL: https://media.endorsement-board.uk/images/page_4_img_2.original.jpg
Project Type: Endorsement Criteria Assessment (ECA) Project Date: December 2025
The UK Endorsement Board (UKEB) is responsible for endorsement and adoption of IFRS for use in the UK and therefore is the UK's National Standard Setter for IFRS. The UKEB also leads the UK's engagement with the IFRS Foundation on the development of new standards, amendments and interpretations.
- Foreword
- Purpose of this Feedback Statement
- Description of IFRS 18 - overall
- Description of IFRS 18 – main requirements
- Stakeholder feedback
- UKEB consultation on the [Draft] ECA
- Overall Assessment
- Detailed assessment - glossary
- Detailed assessment – TAC (1)
- Detailed assessment - TAC (2)
- Foreword
- Purpose of this Feedback Statement
- Description of IFRS 18 - overall
- Description of IFRS 18 – main requirements
- Stakeholder feedback
- UKEB consultation on the [Draft] ECA
- Overall Assessment
- Detailed assessment - glossary
- Detailed assessment – TAC (1)
- Detailed assessment - TAC (2)
- Introduction
- Foreword
- Purpose of this Feedback Statement
- Description of IFRS 18 - overall
- Description of IFRS 18 – main requirements
- Stakeholder feedback
- UKEB consultation on the [Draft] ECA
- Overall Assessment
- Detailed assessment - glossary
- Detailed assessment – TAC (1)
- Detailed assessment - TAC (2)
Foreword
“The UK Endorsement Board is grateful for our ongoing dialogue with stakeholders, and we have welcomed their input to our deliberations regarding IFRS 18.
That input has helped test our thinking and our confidence that we have considered appropriately all relevant issues in the context of our statutory duties. It has thus played an important role in our final adoption decision."
Paul Lee, Chair, UK Endorsement Board
Purpose of this Feedback Statement
This Feedback Statement presents the views of UK stakeholders received during the UKEB's public consultation on the [Draft] Endorsement Criteria Assessment (ECA) of IFRS 18 Presentation and Disclosure in Financial Statements and, where relevant, explains how the UKEB has addressed those views in the final ECA.
Description of IFRS 18 - overall
IFRS 18 Presentation and Disclosure in Financial Statements was issued by the IASB in April 2024. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted.
IFRS 18 is a new IFRS Accounting Standard aimed at improving how entities communicate their financial performance in their financial statements and replaces IAS 1 Presentation of Financial Statements.
The IASB developed IFRS 18 in response to strong demand from stakeholders, particularly from users of financial statements, for improvements to the reporting of financial performance. Many requirements from IAS 1 were incorporated into IFRS 18 unchanged or with minor revisions.
IFRS 18 sets out general presentation and disclosure requirements that apply across the primary financial statements and the notes. IFRS 18 also makes consequential amendments to other IFRS Accounting Standards.
Description of IFRS 18 – main requirements
| Category | Main requirements |
|---|---|
| Specified categories and required subtotals in the statement of profit or loss | Presentation of two new defined subtotals in the income statement—operating profit and profit before financing and income taxes and defined categories (operating, investing and financing, income taxes and discontinued operations). |
| Disclosures about management-defined performance measures (MPMs) | Subtotals of income and expenses, other than subtotals specified by IFRS Accounting Standards, that an entity uses: - In public communications outside financial statements. - To communicate to users of financial statements management's view of an aspect of the entity's financial performance. An entity will be required to provide a reconciliation between these measures and totals or subtotals specified by IFRS Accounting Standards (including a requirement to disclose the effects on tax and non-controlling interests of the adjustments made in calculating these measures). This information is disclosed in a single note in the financial statements. |
| Requirements on aggregation and disaggregation | Enhanced general principles for aggregation and disaggregation and specific requirements for disaggregation of ‘other’ balances, presentation of operating expenses in the income statement and disclosure of specified operating expenses by nature included in each function line item. |
| Limited changes to the statement of cash flows | IFRS 18 requires the use of the operating profit or loss subtotal as the starting point for the indirect reconciliation of cash flows from operating activities and removes presentation alternatives for cash flows related to interest and dividends paid and received. |
Stakeholder feedback
Prior to publishing the [Draft] ECA, the Board gathered stakeholder feedback from all relevant stakeholder categories and incorporated it into the [Draft] ECA. Engagement included:
- UKEB advisory and working group meetings (the Preparer Advisory Group, the Accounting Firms and Institutes Advisory Group, the Investor Advisory Group, the Academic Advisory Group and the Financial Instruments Working Group).
- Surveys (preparers and users), questionnaire to auditors, webinar polls and qualitative interviews.
Following publication of the [Draft] ECA, stakeholder engagement activities included:
- Public consultation on the [Draft] ECA. The [Draft] ECA was published for consultation for 90 days, between 9 July 2025 and 7 October 2025.
- Promotion of the IFRS 18 [Draft] ECA consultation through News Alerts, LinkedIn posts, the UKEB website and targeted emails to UK stakeholders.
UKEB consultation on the [Draft] ECA
- Ten formal responses from stakeholders were received.
- Stakeholder submissions received were published on the UKEB website.
- All stakeholder comments and views were considered in reaching the UKEB's final assessment of IFRS 18.
| Stakeholder type | Number of formal responses |
|---|---|
| Accounting firms | 5 |
| Preparers | 2 |
| Investor representative body (user of accounts) | 1 |
| Professional body | 1 |
| Individual | 1 |
| Total | 10 |
Overall Assessment
Respondents to the [Draft] ECA generally concurred with the UKEB's assessment based on the adoption criteria in paragraph 1 of Regulation 7 SI 2019/685 and are supportive of the adoption of IFRS 18.
Detailed assessment - glossary
The remainder of this feedback statement makes use of the following acronyms and abbreviations:
- TAC: Technical Accounting Criteria
- LTPG: Long Term Public Good
- True and Fair: True and Fair View Assessment
- Sig. Change: Significant Change in Accounting Practice
Detailed assessment – TAC (1)
Technical Accounting Criteria Assessment (Section 3)
| UKEB Tentative Assessment | Stakeholder Views | UKEB Final Assessment |
|---|---|---|
| The [Draft] ECA tentatively concluded that IFRS 18 meets the criteria of relevance, reliability, understandability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by Regulation 7(1) of SI 2019/685. | Nine respondents (six from accounting firms and a professional body, one preparer, one user and one individual) agreed with the UKEB's tentative conclusion in the [Draft] ECA. A preparer from an insurance entity raised concerns that the requirement to classify income and expenses from investments in associates and joint ventures accounted for under the equity method in the investing category will not meet the criterion of relevance. | No further work was undertaken as this concern has already been covered as part of the assessments in the ECA (paragraphs B3–B18). |
Detailed assessment - TAC (2)
Technical Accounting Criteria Assessment (Section 3) – Continued from previous page
| UKEB Tentative Assessment | Stakeholder Views | UKEB Final Assessment | |:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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Project Type: Endorsement and adoption Project Scope: Significant
Introduction
The UK Endorsement Board (UKEB)
The UK Endorsement Board (UKEB) is responsible for endorsement and adoption of IFRS for use in the UK and therefore is the UK's National Standard Setter for IFRS. The UKEB also leads the UK's engagement with the IFRS Foundation on the development of new standards, amendments and interpretations.
Foreword
“The UK Endorsement Board is grateful for our ongoing dialogue with stakeholders, and we have welcomed their input to our deliberations regarding IFRS 18.
That input has helped test our thinking and our confidence that we have considered appropriately all relevant issues in the context of our statutory duties. It has thus played an important role in our final adoption decision."
Paul Lee, Chair, UK Endorsement Board
Purpose of this Feedback Statement
This Feedback Statement presents the views of UK stakeholders received during the UKEB's public consultation on the [Draft] Endorsement Criteria Assessment (ECA) of IFRS 18 Presentation and Disclosure in Financial Statements and, where relevant, explains how the UKEB has addressed those views in the final ECA.
Description of IFRS 18 - overall
IFRS 18 Presentation and Disclosure in Financial Statements was issued by the IASB in April 2024. IFRS 18 is effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted.
IFRS 18 is a new IFRS Accounting Standard aimed at improving how entities communicate their financial performance in their financial statements and replaces IAS 1 Presentation of Financial Statements.
The IASB developed IFRS 18 in response to strong demand from stakeholders, particularly from users of financial statements, for improvements to the reporting of financial performance. Many requirements from IAS 1 were incorporated into IFRS 18 unchanged or with minor revisions.
IFRS 18 sets out general presentation and disclosure requirements that apply across the primary financial statements and the notes. IFRS 18 also makes consequential amendments to other IFRS Accounting Standards.
Description of IFRS 18 – main requirements
| Category | Main requirements |
|---|---|
| Specified categories and required subtotals in the statement of profit or loss | Presentation of two new defined subtotals in the income statement—operating profit and profit before financing and income taxes and defined categories (operating, investing and financing, income taxes and discontinued operations). |
| Disclosures about management-defined performance measures (MPMs) | Subtotals of income and expenses, other than subtotals specified by IFRS Accounting Standards, that an entity uses: - In public communications outside financial statements. - To communicate to users of financial statements management's view of an aspect of the entity's financial performance. An entity will be required to provide a reconciliation between these measures and totals or subtotals specified by IFRS Accounting Standards (including a requirement to disclose the effects on tax and non-controlling interests of the adjustments made in calculating these measures). This information is disclosed in a single note in the financial statements. |
| Requirements on aggregation and disaggregation | Enhanced general principles for aggregation and disaggregation and specific requirements for disaggregation of ‘other’ balances, presentation of operating expenses in the income statement and disclosure of specified operating expenses by nature included in each function line item. |
| Limited changes to the statement of cash flows | IFRS 18 requires the use of the operating profit or loss subtotal as the starting point for the indirect reconciliation of cash flows from operating activities and removes presentation alternatives for cash flows related to interest and dividends paid and received. |
Stakeholder feedback
Prior to publishing the [Draft] ECA, the Board gathered stakeholder feedback from all relevant stakeholder categories and incorporated it into the [Draft] ECA. Engagement included:
- UKEB advisory and working group meetings (the Preparer Advisory Group, the Accounting Firms and Institutes Advisory Group, the Investor Advisory Group, the Academic Advisory Group and the Financial Instruments Working Group).
- Surveys (preparers and users), questionnaire to auditors, webinar polls and qualitative interviews.
Following publication of the [Draft] ECA, stakeholder engagement activities included:
- Public consultation on the [Draft] ECA. The [Draft] ECA was published for consultation for 90 days, between 9 July 2025 and 7 October 2025.
- Promotion of the IFRS 18 [Draft] ECA consultation through News Alerts, LinkedIn posts, the UKEB website and targeted emails to UK stakeholders.
UKEB consultation on the [Draft] ECA
- Ten formal responses from stakeholders were received.
- Stakeholder submissions received were published on the UKEB website.
- All stakeholder comments and views were considered in reaching the UKEB's final assessment of IFRS 18.
| Stakeholder type | Number of formal responses |
|---|---|
| Accounting firms | 5 |
| Preparers | 2 |
| Investor representative body (user of accounts) | 1 |
| Professional body | 1 |
| Individual | 1 |
| Total | 10 |
Overall Assessment
Respondents to the [Draft] ECA generally concurred with the UKEB's assessment based on the adoption criteria in paragraph 1 of Regulation 7 SI 2019/685 and are supportive of the adoption of IFRS 18.
Detailed assessment - glossary
The remainder of this feedback statement makes use of the following acronyms and abbreviations:
- TAC: Technical Accounting Criteria
- LTPG: Long Term Public Good
- True and Fair: True and Fair View Assessment
- Sig. Change: Significant Change in Accounting Practice
Detailed assessment – TAC (1)
Technical Accounting Criteria Assessment (Section 3)
| UKEB Tentative Assessment | Stakeholder Views | UKEB Final Assessment |
|---|---|---|
| The [Draft] ECA tentatively concluded that IFRS 18 meets the criteria of relevance, reliability, understandability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by Regulation 7(1) of SI 2019/685. | Nine respondents (six from accounting firms and a professional body, one preparer, one user and one individual) agreed with the UKEB's tentative conclusion in the [Draft] ECA. A preparer from an insurance entity raised concerns that the requirement to classify income and expenses from investments in associates and joint ventures accounted for under the equity method in the investing category will not meet the criterion of relevance. | No further work was undertaken as this concern has already been covered as part of the assessments in the ECA (paragraphs B3–B18). |
Detailed assessment - TAC (2)
Technical Accounting Criteria Assessment (Section 3) – Continued from previous page
| UKEB Tentative Assessment | Stakeholder Views | UKEB Final Assessment | |:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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