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Appendix A: Technical Advisory Committee Update

Executive Summary
Project Type Monitoring
Project Scope Limited
Purpose of the paper This paper provides a summary of the agenda and decisions from the 9 December 2025 meeting of the UK Sustainability Disclosure Technical Advisory Committee (TAC) as relevant to the UKEB.
The UKEB is represented on the TAC by a Board Member, who is appointed as a full Committee member to reflect the need to maintain connectivity between UK-adopted international accounting standards and UK SRS.

Summary of the Issue

At this meeting the TAC considered draft responses to the Greenhouse Gas Protocol's (GHGP) proposed revisions to its Greenhouse Gas Scope 2 guidance. The TAC noted potential impacts from the proposed revisions on the application of accounting standards for nature-dependent electricity contracts.

The TAC also considered whether it was necessary to reconsider prior endorsement recommendations to the Secretary of State regarding financed emissions and revising comparatives considering recent stakeholder feedback.

Questions for the Board

None

Recommendation

N/A - noting only

Appendices
Annex A: UK Sustainability Disclosure TAC - Background
Annex B: UK Sustainability Disclosure TAC - meeting schedule

TAC meeting – December 2025

A1.The 9 December 2025 TAC meeting the members considered a draft response to the Greenhouse Gas Protocol (GHGP) regarding its proposed revisions to its Scope 2 guidance.

A2.The TAC also considered whether it was necessary to reconsider prior endorsement recommendations to the Secretary of State regarding financed emissions and revising comparatives considering recent stakeholder feedback.

Greenhouse Gas Protocol (GHGP) Scope 2 Consultation Draft Response

A3.The TAC discussed the draft response to GHGP as well as recommendations for the ISSB in the context of findings from UK stakeholder engagement conducted by the TAC Secretariat. This engagement included discussions with the UKEB Secretariat in relation to potential impacts on accounting for nature-dependent electricity contracts.

A4.The TAC noted possible financial accounting impacts of the proposed GHGP Scope 2 revisions, including on IFRS 9 Financial Instruments own-use eligibility, hedge accounting and IAS 37 Provisions, Contingent Liabilities, and Contingent Assets onerous contracts in its draft responses1 to both the GHGP and to the ISSB.

A5.The TAC recommended that to avoid any potential overlaps or unintended consequences, the GHGP technical team engage as a priority with both the International Sustainability Standards Board (ISSB) and IASB technical staff and discuss the recent IASB work on nature dependent electricity contracts.

A6.It was agreed that an updated draft letter to the ISSB would be reconsidered at the TAC's meeting in January 2026.

Financed emissions - prior year balance sheet2

A7.The TAC's initial recommendation to the Secretary of State was that the impracticability provisions in IFRS S2 Climate-related Disclosures (IFRS S2) paragraph B57 could be applied by financial institutions. In the absence of an acknowledgement of this point from the ISSB and considering new information received via the UK Government's consultation on UK Sustainability Reporting Standards (UK SRS), the TAC discussed whether to amend its original endorsement recommendation.

A8.The TAC agreed to recommend inserting a 'relief' in IFRS S2 to require financial institutions to disclose if they had been unable to meet the requirement and to explain actions being taken to achieve compliance in future.

Revising comparatives due to changes in estimates3

A9.Due to new information received via the UK Government's consultation on UK SRS, the TAC reconsidered its endorsement recommendations to the Secretary of State in relation to the requirement in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) paragraph B50 to revise comparatives due to changes in estimates, especially relating to financed emissions.

A10.The TAC considered the wording in (draft) European Sustainability Reporting Standard 1 (ESRS 1) which clarified that an entity was not required to revise comparative figures for new information received, where the revised comparatives do not provide useful information.

A11.The TAC agreed in principle that this approach could also apply to IFRS S1 but did not consider it necessary to amend its endorsement advice to the Secretary of State. However, the TAC agreed to refer the matter to the UK Sustainability Disclosure Policy & Implementation Committee (PIC).

General reporting update4

A12.The TAC noted a summary of local and international sustainability news and jurisdictional developments. It was noted that the TAC had submitted its responses5 to the ISSB consultation on Phase 1 of the SASB enhancement project.

A13.The observer from the Department of Business and Trade (DBT) advised that the final UK Sustainability Reporting Standards (SRS) were expected to be published in February 2026.

Due Process

A14.The TAC approved the due process followed in the development of the TAC's comment letters6 on phase one of the SASB enhancement project and for the comment letter7 on the GHG Protocol's proposed revisions to the Scope 2 Guidance.

Annex A: UK Sustainability Disclosure TAC - Background

A1.The TAC was initially tasked by the Business and Trade (DBT)8 to assess the IFRS Sustainability Disclosure Standards, from a technical perspective, and provide advice9 to the Secretary of State on whether their endorsement would be conducive to the long-term public good in the UK.

A2.On 18 December 2024, the TAC concluded10 that the endorsement of both IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2), was likely to be conducive to the long-term public good in the UK.

A3.The TAC was also requested by the DBT11 to understand the ISSB's enhancements to the SASB Standards and the implications of this for UK Sustainability Reporting Standards (UK SRS).

A4.In addition to the TAC there is also a separate Committee, the Policy Implementation Committee12 (PIC) is responsible for ensuring that any endorsed standards are implemented in a way that aligns with the mandates of UK government departments and regulator representatives.

Annex B: UK Sustainability Disclosure TAC – 2026 meeting schedule

B1.The public meeting agenda, technical papers and summary minutes from the TAC meetings can be found on the UK Sustainability Disclosure Technical Advisory Committee website13.

B2.TAC meetings, scheduled for 2026, are listed below for information.

  1. Monday 19 January – awaiting meeting summary.
  2. Tuesday 17 February
  3. Tuesday 24 March
  4. Tuesday 21 April
  5. Tuesday 19 May
  6. Tuesday 16 June
  7. Tuesday 14 July
  8. Tuesday 15 September
  9. Tuesday 13 October
  10. Tuesday 17 November
  11. Tuesday 15 December

Appendix B: Sustainability Update

IFRS Foundation updates

International Sustainability Standards Board (ISSB)

B1.In response to application implementation challenges, the International Sustainability Standards Board (ISSB) published targeted amendments14 to IFRS S2 Climate-related Disclosures to greenhouse gas emissions disclosure requirements on 11 December 2025. The amendments will be effective for reporting periods beginning on or after 1 January 2027, with early application permitted.

B2.The ISSB met on 10 December 2025 to discuss the due process steps for transitioning the Biodiversity, Ecosystems and Ecosystem Services (BEES) research project to a standard-setting project15 and to determine if a nature specific consultative group16 was required.

B3.In relation to BEES, the ISSB decided to transition the project to standard-setting and add this project to its work plan. The project will develop disclosure requirements to supplement ISSB Standards and respond to the needs of primary users of general-purpose financial reports for information on nature-related risks and opportunities. Instead of creating a new consultative group the ISSB decided to use its existing advisory bodies to support the project. The ISSB Secretariat will develop a plan and approach for an Exposure Draft for the nature-related risks and opportunities.

B4.At the same meeting the ISSB discussed Human Capital in relation to research findings regarding the necessity and feasibility of standard-setting17 but was not asked to make any decisions.

B5.The IFRS Foundation announced18 an update to its existing Memorandum of Understanding (MoU) with the Chinese Ministry of Finance. This will enable the ISSB to maintain its existing office in Beijing.

International Accounting Standards Board (IASB)

B6.The IASB issued the final version of illustrative examples for reporting uncertainties in financial statements19 on 28 November 2025. The examples use climate-related scenarios as practical illustrations, but the underlying principles are intended to apply more broadly to all uncertainties.

UK update

B7.The UK Sustainability Disclosure Technical Advisory Committee (TAC) submitted its response20 to the ISSB's consultation on Phase 1 of the SASB enhancement project.

European update

B8.EFRAG published a Discussion Paper on connectivity21 between financial reporting and sustainability reporting. The purpose of the Discussion Paper is to provide thought leadership on the concepts and practical application of connectivity and suggests ways to enhance connectivity and the related aspect of clarifying the borders of different annual report sections. Comments are requested by 30 June 2026.

B9.The European Parliament has finalised its position on the Corporate Sustainability Reporting Directive (CSRD) which is estimated to significantly reduce the number of companies in-scope. CSRD will apply to companies with greater than 1,000 employees and €450m in net annual turnover. The first wave of companies will be required to report sustainability information in accordance with the European Sustainability Reporting Standards (ESRS) from 1 January 2024, with additional groups phased in through 2028.

B10.Non-EU companies with over €450m net turnover generated in the EU and non-EU companies with branches or subsidiaries that generate over €200m net turnover within EU countries will also be in scope.

Appendix C: IFRS 18 Presentation and Disclosure in Financial Statements—Due Process Compliance Statement

Title of the Standard Issue dates
The International Accounting Standards Board (IASB) published IFRS 18 Presentation and Disclosure in Financial Statements. • IFRS 18 Presentation and Disclosure in Financial Statements was issued on 9 April 2024.
• IFRS 18 has an effective date of 1 January 2027. Earlier application is permitted.

Project Preparation

Step - Added to the UKEB Technical Work Plan [Due Process Handbook (Handbook) [4.30] Project Initiation Plan (PIP) [Handbook 6.12 to 6.16, A1 to A2 and A12 to A14]

Mandatory / Optional22 Metrics or Evidence UKEB Secretariat Comments
Mandatory Project is included in the UKEB published technical work plan. Complete: The UKEB workplan dated 23 February 2024 indicated that the PIP for the project to endorse IFRS 18 Presentation and Disclosure in Financial Statements was proposed for February 2024. IFRS 18 as an endorsement project was included in the UKEB technical work plan published dated 28 March 2024.
Mandatory PIP draft with project outline (background, scope, project objective) and approach for endorsement (key milestones and timing) Complete: The Secretariat included mandatory milestones for the project and considered, as appropriate, other milestones and activities.
The PIP approved was approved at the 23 February 2024 Board meeting subject to further revisions. An updated PIP was presented for noting at the 28 March 2024 Board meeting and published on the UKEB webpage on 3 April 2024.
Mandatory / Optional23 Metrics or Evidence UKEB Secretariat Comments
Mandatory Outreach plan for stakeholders and communication approach outlined Complete: The PIP included the outreach plan and approach (refer for example to paragraphs 14-15).
Mandatory Resources allocated Complete: The PIP explained in paragraphs 62–63 that one Project Director, one Project Manager and an economist, on a part-time basis were allocated to the project; that an additional project manager had been allocated to the project and expected to be available part-time from Q2–Q3 2024. The PIP also included the plan to hire a fixed-term contract researcher with background in economics for the duration of six months to assist with this (and other) projects.
Mandatory Assessment of whether to set up an ad-hoc advisory group Complete: Assessed.
Taking a proportionate approach, an ad hoc advisory group was considered unnecessary (refer to paragraph 64 of the PIP).
Mandatory Assessment of whether PIP required updating Complete: Assessed.
An updated PIP was presented for noting at the 28 March 2024 Board meeting and published on the UKEB webpage on 3 April 2024. The updated PIP addressed the comments made by the Board at its 23 February 2024 meeting and included a revised timeline for the adoption of IFRS 1824.
Mandatory UKEB Board public meeting held to approve PIP Complete: The PIP was approved at the 23 February 2024 Board meeting subject to further revisions. An updated PIP was presented for noting at the 28 March 2024 Board meeting and published on the UKEB webpage on 3 April 2024.

Step - Education Sessions [Handbook 4.10]

Mandatory / Optional25 Metrics or Evidence UKEB Secretariat Comments
Optional Board provided with Education sessions Complete: The Board was provided with an education session with the participation of IASB staff on 18 July 2024. To facilitate this discussion, the Board were provided technical papers with an overview of the main requirements in IFRS 18. The Board also had an opportunity to ask questions to the IASB staff. This was a private session.

Desk-based Research

Step - Desk-based Research [Handbook 6.17 and A3]
Mandatory / Optional26 Metrics or Evidence UKEB Secretariat Comments
Optional Review of relevant documentation Complete: the Secretariat has reviewed relevant documentation, including:
• The IASB's work on IFRS 18 (including staff papers, the final Standard and supporting materials).
• The Basis for Conclusions to the Standard.
• Comment letters on the ED received by the IASB from UK stakeholders including from the UKEB Secretariat.
• Publications on IFRS 18, regulatory publications including FRC thematics on subjects related to IFRS 18.
• Other standard-setters' views.
• In-house research on long term public good.
• Accounting manuals with guidance and illustrative examples.
• The European Financial Reporting Advisory Group (EFRAG) endorsement advice to the European Commission.

Outreach

Step - Consult with a Representative Range of Stakeholders Prior to Adoption [Handbook 6.18 to 6.21 and A4 to A8]
Mandatory / Optional27 Metrics or Evidence UKEB Secretariat Comments
Mandatory Evidence of consultation Complete: As described in paragraph 9 of the PIP and in the [Draft] Endorsement Criteria Assessment of IFRS 18 (paragraph 7), consultation activities were focused on:
2023
In October and November 2023, the Secretariat held education sessions with the UKEB's Advisory Groups with the support of the IASB staff28. The purpose was to obtain feedback on key aspects of IFRS 18 to help identify any significant endorsement concerns and start identifying any likely costs and benefits resulting from the application of the new requirements.
2024
• Discussion at the Financial Instruments Working Group (FIWG) on 23 April 2024 to ask for feedback on the identification of significant endorsement issues.
• Further discussions with UKEB advisory groups throughout 2024 These focused on the design, piloting and distribution of the surveys, and on the preliminary survey feedback received.29
• Preparer and User surveys and an auditor questionnaire in Q3 2024. These focused on gathering evidence on whether IFRS 18 meets the technical accounting criteria and whether it is likely to be conducive to the long term public good in the UK. The survey results were presented to the Board in December 202430.
Mandatory / Optional31 Metrics or Evidence UKEB Secretariat Comments
• Educational activities (a webcast in May 2024) and a webinar in July 2024.
• Preparer interviews conducted in Q4 2024 focusing on the likely costs and benefits associated with the implementation of IFRS 18.
• A presentation to the QCA Accounting, Auditing and Financial Reporting Expert Group in February 2025 as a targeted outreach to small and medium-sized listed entities. This outreach replaces the planned webinar with the QCA membership, as set out in the PIP.
• Bilateral engagement with UK regulators, accounting professional bodies, and users.
2025
• Further discussions with UKEB advisory groups throughout 2025 to provide an update on the endorsement project and to encourage members to submit formal responses32.
• Public consultation of the [Draft] Endorsement Criteria Assessment of IFRS 18. The comment letters received were published on the UKEB website.

Draft Endorsement Criteria Assessment ([Draft] ECA)

Step - [Draft] ECA [6.23 to 6.29]
Mandatory / Optional33 Metrics or Evidence UKEB Secretariat Comments
Mandatory The UKEB sets comment period for responses to [Draft] ECA Complete: The [Draft] ECA of IFRS 18 was published for consultation on 9 July 2025. It was open for comment for 90 days until 7 October 2025.
Mandatory Review and approval at a UKEB public meeting Complete: The [Draft] ECA of IFRS 18 was reviewed and approved at the Board meeting on 26 June 2025.
Mandatory [Draft] ECA published on website for public consultation Complete: The Secretariat published the approved [Draft] ECA of IFRS 18 on the UKEB website for a 90-day consultation period from 9 July 2025 to 7 October 2025.
Mandatory Public responses to [Draft] ECA assessed and published on website Complete: The UKEB received 10 comment letters which were published on the UKEB website.
All responses were assessed, reflected as appropriate in the final ECA and summarised in the Feedback Statement.

Project Finalisation and Project Closure

Step - Final Endorsement Criteria Assessment (ECA) [Handbook 6.32 and 6.40 to 6.48]
Mandatory / Optional34 Metrics or Evidence UKEB Secretariat Comments
Mandatory Final ECA approved by the UKEB in public meeting Complete: A draft of the final ECA was presented for approval to the Board at its 20 November 2025 public meeting. The Board approved the final ECA subject to suggested amendments.
Mandatory / Optional35 Metrics or Evidence UKEB Secretariat Comments
Mandatory Final ECA published on the website Complete: The final ECA was published on the UKEB website on 12 December 2025. A News Alert and a LinkedIn post were published on 12 December 2025 to alert stakeholders to the endorsement and adoption of IFRS 18.
Step - Feedback Statement [Handbook 6.33 to 6.36]
Mandatory / Optional36 Metrics or Evidence UKEB Secretariat Comments
Mandatory Feedback Statement approved by the UKEB in a public meeting Complete: A draft of the Feedback Statement was presented for approval to the Board at its 20 November 2025 public meeting. The Board approved the final Feedback Statement, subject to suggested amendments.
Mandatory Feedback Statement published on the website Complete: The final Feedback Statement was published on the UKEB website on 12 December 2025.
Step - Adoption Statement [Handbook 6.40 to 6.48]
Mandatory / Optional37 Metrics or Evidence UKEB Secretariat Comments
Mandatory Adoption Statement approved by the UKEB in public meeting Complete: The Adoption Statement for IFRS 18 was approved by the Board at its 20 November 2025 public meeting.
Mandatory Adoption Statement Complete: The final Adoption Statement for IFRS 18 was published on 12 December 2025.
Mandatory / Optional38 Metrics or Evidence UKEB Secretariat Comments
published on the website
Step - Voting on Adoption of IFRS 18 [Handbook 6.42 to 6.48]
Mandatory / Optional39 Metrics or Evidence UKEB Secretariat Comments
Mandatory Tentative vote Complete: Tentative vote took place at the 20 November 2025 public Board meeting based on the discussion of the Adoption Package, which included the final draft ECA, the Feedback Statement, the DPCS, the draft Adoption Statement for the IFRS 18 and the text of the UK-adopted international accounting standard IFRS 18 Presentation and Disclosure in Financial Statements. The vote was indicative only.
Mandatory Evidence of written vote (in paper or electronic form) Complete: The Adoption Statement and voting forms were sent to the Board for voting (accompanied by the text of IFRS 18 to be adopted) on 2 December 2025, written forms were due by 9 December 2025. The vote was formalised by Board members signing the formal voting forms for IFRS 18.
Mandatory Outcome of the vote within 3 working days of the formal vote published on website Complete: The announcement of the adoption of IFRS 18 was published on the UKEB website on 12 December 2025.
Step - Due Process Compliance Statement (DPCS) [Handbook 6.37 to 6.39]
Mandatory / Optional40 Metrics or Evidence UKEB Secretariat Comments
Mandatory DPCS approved by the UKEB in public meeting Complete: A [draft] DPCS was presented for approval to the Board at its 20 November 2025 public meeting. A final DPCS was presented for noting at the Board's 29 January 2026 meeting.
Mandatory DPCS published on the website Complete: The final DPCS was published on the UKEB website after the 29 January 2026 Board meeting.

Ongoing Communications

Step - Public Board Meetings [Handbook 4.10]
Mandatory / Optional41 Metrics or Evidence UKEB Secretariat Comments
Mandatory UKEB public meetings held to discuss technical project Complete:
• The Board approved the PIP at its meeting on 23 February 2024. An updated PIP was presented for noting at its meeting on 28 March 2024.
• The Board was provided with an education session with the participation of IASB staff on 18 July 2024 (private session).
• The Board discussed the results of the surveys on IFRS 18 at its meeting on 12 December 2024.
• The Board discussed the sections of the [Draft] ECA at its meetings on 28 March 2025 and 22 May 2025.
• The Board reviewed and approved the [Draft] ECA at its meeting on 26 June 2025.
• The Board discussed a summary of the feedback received on the 10 comment letters received on the [Draft] ECA at its meeting on 30 October 2025.
Mandatory / Optional42 Metrics or Evidence UKEB Secretariat Comments
• The Board reviewed and approved the draft Adoption Package at its meeting on 20 November 2025 subject to the comments received at this meeting.
Step - Secretariat Papers [Handbook 4.20]
Mandatory / Optional43 Metrics or Evidence UKEB Secretariat Comments
Mandatory Board meeting papers posted and publicly available usually no later than 5 working days before a Board meeting. Complete:
The UKEB's meeting papers were published on the UKEB website 5 working days before the public meetings. Meeting minutes and recordings were made publicly available via the UKEB website.
Step - Project Webpage [Handbook 4.25(b)]
Mandatory / Optional44 Metrics or Evidence UKEB Secretariat Comments
Mandatory Project webpage contains a project description with up-to-date information on the project. Complete: The project webpage has been updated regularly on a timely basis.
Step - Subscriber Alerts [Handbook 4.24]
Mandatory / Optional45 Metrics or Evidence UKEB Secretariat Comments
Optional Evidence that subscriber alerts have occurred Complete: Subscribers were alerted via email 5 working days before each Board meeting, with links to the agenda, papers and the option to dial in to observe the discussion.
Step - News Alerts [Handbook 4.24]
Mandatory / Optional46 Metrics or Evidence UKEB Secretariat Comments
Optional News Alert to announce publication of key documents Complete: Three News Alerts were published on 9 July 2025, 3 September 2025 and 1 October 2025 calling for comments on the [Draft] ECA.
The FRC shared the IFRS 18 [Draft] ECA news alert on 12 September.
LinkedIn posts for the [Draft] ECA were published during 2025: on July 10 and 23; on August 6 and 20; on September 4, 17 and 30; and on October 6.
LinkedIn posts on the IFRS 18 educational webcast/webinar were published during 2025: on July 9, 16 and 30; on August 13 and 27; and on September 11 and 24.
A News Alert announcing the adoption of IFRS 18 along with links to the project webpage which includes publication of the final ECA and the Feedback Statement was published on 12 December 2025.

Conclusion

This project complies with the applicable due process steps, as set out in the December 2022 Handbook.

Appendix D: Due Process Compliance Statement: IFRS Interpretations Committee – Tentative Agenda Decision: Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18)

In September 2025, the IFRS Interpretations Committee (the Committee) published the Tentative Agenda Decision – Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18). The Committee's comment period ended on 25 November 2025.

Influencing Process

Project Preparation

Table 1: Step - Added to UKEB Technical Work Plan [Due Process Handbook (Handbook) 4.30]
Mandatory / Optional47 Metrics or Evidence UKEB Secretariat Comments
Mandatory Project included in the UKEB published technical work plan Complete: The IFRS Interpretations Committee's Tentative Agenda Decision: Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18) was included in the UKEB technical work plan published in November 2025.
Link to document: UKEB Work Plan November 2025.
Mandatory PIP draft with project outline (background, scope, project objective) and approach for influencing (key milestones and timing) Complete: The PIP was prepared in line with the UKEB's Due Process, setting out the key milestones and stakeholder outreach envisaged for Influencing IFRS Interpretations Committee's tentative agenda decisions48.
The Project Initiation Plan was approved at the 20 November 2025 Board meeting.
Mandatory / Optional49 Metrics or Evidence UKEB Secretariat Comments
Mandatory Outreach plan for stakeholders and communication approach outlined Complete: The PIP (referred to above) included the outreach plan and approach.
Mandatory Resources allocated Complete: The Secretariat involved in this project consisted of one Project Director (on a part-time basis) with oversight provided by one Senior Project Director. Sufficient resources were allowed for in the UKEB plan for 2025-2026.
Mandatory Assessment of whether to set up an ad-hoc advisory group Complete: Taking a proportionate approach, and given the consultation for a Committee's tentative agenda decision is much shorter than for other IASB due process documents, an ad-hoc advisory group was not considered necessary for this project.
Mandatory Assessment of whether PIP required updating Complete: No updates to the PIP were required.
Mandatory UKEB Board public meeting held to approve PIP Complete: The PIP was approved at the 20 November 2025 Board meeting.

Desk-based Research

Table 2: Step - Education Sessions [Handbook 4.10]
Mandatory / Optional50 Metrics or Evidence UKEB Secretariat Comments
Optional Board provided with education sessions Complete: No education session was provided to the Board, however a brief summary of the IASB staff analysis and the Committee's discussion held in September 2025 was presented to the Board at its October and November 2025 public meetings.
Table 3: Step - Desk-based Research [Handbook 5.9 and A3]
Mandatory / Optional51 Metrics or Evidence UKEB Secretariat Comments
Optional Review of relevant documentation Complete: the Secretariat has reviewed:
• The Committee's work on the Tentative Agenda Decision (i.e. the Tentative Agenda Decision, staff papers); and
• IFRS Accounting Standards, in particular IFRS 18 Presentation and Disclosure in Financial Statements.

Outreach

Table 4: Step - Outreach Activities [Handbook 5.10 to 5.12 and A4 to A8]
Mandatory / Optional52 Metrics or Evidence UKEB Secretariat Comments
Mandatory Evidence of consultation Complete:
As per paragraph 5.32 of the UKEB Due Process Handbook, due to the short consultation period on the Committee's Tentative Agenda Decision – which is much shorter than for other IASB due process documents – the UKEB outreach activities focused on consultation with members of the UKEB's advisory groups.
The Secretariat engaged with members of the UKEB's Accounting Firms and Institutes Advisory Group and Preparer Advisory Group.

Draft Comment Letter (DCL)

Table 5: Step - DCL Published for Comment (Mandatory unless Impracticable) [Handbook 5.13 to 5.17 and A4(d)]
Mandatory / Optional53 Metrics or Evidence UKEB Secretariat Comments
Mandatory (unless Impracticable) Comment period set for responses to DCL Complete: At its 20 November 2025 meeting the UKEB made a decision to submit a response to the Committee's Tentative Agenda Decision: Classification of a Foreign Exchange Difference from
an Intragroup Monetary Liability (or Asset) (IFRS 18). The Committee's comment deadline was 25 November 2025.
Due to the above timeline, issuing a draft comment letter was not practicable (as per paragraph 5.17 of the UKEB Due Process Handbook).
Paragraph 5.32 of the UKEB Due Process Handbook notes that in relation to influencing Committee's tentative agenda decisions, the UKEB is not able to follow all the milestones in paragraph 5.3, however, some outreach activities are undertaken (see sections above). All feedback received was considered in the preparation of the draft Final Comment Letter.
Mandatory (unless Impracticable) Review and approval at a UKEB public meeting Not Applicable. See above comment.
Mandatory (unless Impracticable) DCL published on website for public consultation Not Applicable. See above comment.

Project Finalisation and Project Closure

Table 6: Step - Final Comment Letter (FCL) [Handbook 5.18 and A4(d)]
Mandatory / Optional54 Metrics or Evidence UKEB Secretariat Comments
Mandatory Public responses to DCL considered and published on website As noted above, issuing a draft comment letter was not practicable. All stakeholder feedback received was considered in the preparation of the draft FCL, presented for Board approval at the November 2025 meeting.
Mandatory FCL approved by the UKEB in public meeting Complete: A draft of the FCL was presented for approval to the Board at its 20 November 2025 public meeting. The Board approved the FCL, subject to suggested amendments.
Mandatory FCL submitted to the IASB and posted on UKEB website Complete: The UKEB Final Comment Letter was submitted to the IFRS Interpretations Committee on 25 November 2025 and subsequently published on the UKEB website.
Table 7: Step - Feedback Statement [Handbook 5.19 to 5.22 and A9 to A11]
Mandatory / Optional55 Metrics or Evidence UKEB Secretariat Comments
Mandatory Feedback Statement approved for publication by the UKEB in a public meeting A Feedback Statement is generally prepared summarising feedback received from UK
Mandatory / Optional56 Metrics or Evidence UKEB Secretariat Comments
Feedback Statement published on the UKEB website stakeholders on UKEB consultation documents.
As noted above, no UKEB consultation document (i.e., draft comment letter) was published and all stakeholder feedback received was considered and reflected accordingly in the draft Final Comment Letter approved by the Board at its 20 November 2025 meeting. As a result, the Board agreed that no Feedback Statement should be prepared for this project.
Not Applicable. See above comment.
Table 8: Step - Due Process Compliance Statement (DPCS) [Handbook 5.23 to 5.26 and A12 to A14]
Mandatory / Optional57 Metrics or Evidence UKEB Secretariat Comments
Mandatory DPCS approved by the UKEB in public meeting Complete: A draft DPCS was presented for approval to the Board at its 20 November 2025 public meeting. A final DPCS was presented for noting at the Board's 29 January 2026 meeting.
Mandatory DPCS published on the website Complete: The final DPCS was published on the UKEB website after the
Mandatory / Optional58 Metrics or Evidence UKEB Secretariat Comments
29 January 2026 Board meeting.

Ongoing Communications

Table 9: Step - Public Board Meetings [Handbook 4.10]
Mandatory / Optional59 Metrics or Evidence UKEB Secretariat Comments
Mandatory UKEB public meetings held to discuss technical project Complete: At its 20 November 2025 meeting:
• the Board received an overview of the project;
• the Board approved the PIP, FCL and [Draft] DPCS; and
• the Board agreed that no Feedback Statement should be prepared for this project.
Table 10: Step - Secretariat Papers [Handbook 4.20]
Mandatory / Optional60 Metrics or Evidence UKEB Secretariat Comments
Mandatory Board meeting papers posted and publicly available usually no later than 5 working days before a Board meeting. Complete: The UKEB's meeting papers were published on the UKEB website 5 working days before the public meetings. Meeting minutes and recordings were made publicly available via the UKEB website.
Table 11: Step - Project Webpage [Handbook 4.25(b)]
Mandatory / Optional61 Metrics or Evidence UKEB Secretariat Comments
Mandatory Project webpage contains a project description with up-to-date information on the project. Complete: The project webpage IFRS Interpretations Committee - TAD: Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18) contains all relevant project information.
Table 12: Step - Subscriber Alerts [Handbook 4.24]
Mandatory / Optional62 Metrics or Evidence UKEB Secretariat Comments
Optional Evidence that subscriber alerts have occurred Complete: Subscribers were alerted via email 5 days before each Board meeting, with links to the agenda, papers and the option to dial in to observe the discussion.
Table 13: Step - News Alerts [Handbook 4.24]
Mandatory / Optional63 Metrics or Evidence UKEB Secretariat Comments
Optional News Alert to announce publication of key documents Complete: A News Alert was published on 3 December 2025 announcing the publication of the UKEB Final Comment Letter in response to the Committee's Tentative Agenda Decision: Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18).

Conclusion

This project complies with the applicable due process envisaged for influencing IFRS Interpretation Committee's tentative agenda decisions, as set out in the UKEB December 2022 Handbook.

Footnotes

  1. TAC Paper 4: GHGP Scope 2 Consultation Draft Response (Please refer to Appendix 1 paragraph 35 on page 9, Appendix 2 response to consultation question 143 on page 45 and Appendix 3 paragraphs 45 and 46) ↩

  2. TAC Paper 6: Financed emissions prior year balance sheet ↩

  3. TAC Paper 7 Revising comparatives ↩

  4. TAC-TAC Update December 2025. ↩

  5. TAC Consultation response: SASB enhancements ↩

  6. TAC Paper 3: SASB Phase 1 Due Process Summary ↩

  7. TAC Paper 5: GHGP Scope 2 Draft Due Process Summary ↩

  8. Section B: UK Sustainability Disclosure TAC Terms of Reference. ↩

  9. Context letter from the Department for Business and Trade (May 2024) suggests that the TAC may wish to consider whether definitions in IFRS S1 and IFRS S2 are sufficiently clear, and whether any significant incompatibilities are identified with those currently used UK adopted international accounting standards. ↩

  10. TAC endorsement recommendation - UK Endorsement of IFRS S1 and IFRS S2. ↩

  11. DBT TAC priorities (June 2025). ↩

  12. Section C: UK Sustainability Disclosure PIC Terms of Reference (updated September 2025) ↩

  13. UK Sustainability Disclosure Technical Advisory Committee. ↩

  14. ISSB 'ISSB issues targeted amendments to IFRS S2 to support implementation' (December 2025) ↩

  15. ISSB Moving the BEES research project to a standard-setting project in the ISSB work plan ↩

  16. ISSB Need for a consultative group for standard-setting ↩

  17. ISSB Research findings on the necessity and feasibility of standard setting ↩

  18. ISSB 'IFRS Foundation renews MoU with Chinese Ministry of Finance, appoints new office director' (December 2025) ↩

  19. IASB 'IASB issues illustrative examples on reporting uncertainties in financial statements' (November 2025) ↩

  20. TAC Consultation response: SASB enhancements ↩

  21. EFRAG Discussion Paper CONNECTIVITY OF FINANCIAL AND SUSTAINABILITY REPORTING (December 2025) ↩

  22. In accordance with the Due Process Handbook. ↩

  23. In accordance with the Due Process Handbook. ↩

  24. The main changes made to the PIP are explained in agenda paper 13A (28 March 2024). ↩

  25. In accordance with the Due Process Handbook. ↩

  26. In accordance with the Due Process Handbook. ↩

  27. In accordance with the Due Process Handbook. ↩

  28. The Secretariat met with the IAG on 27 November 2023; with the PAG on 31 October 2023; and with the AFIAG on 2 November 2023. The feedback received was reported back to the Board at its November 2023 meeting. ↩

  29. The meeting summaries were made available on the UKEB website. The Secretariat met with: Academic Advisory Group (AAG): on 12 April 2024; Investor Advisory Group (IAG): 26 February 2024, 10 June 2024, and 4 November 2024; Preparer Advisory Group (PAG): 5 March 2024, 17 June 2024, 28 October 2024; Accounting Firms & Institutes Advisory Group (AFIAG): 14 March 2024, 1 July 2024 and 7 November 2024. The outcome of those discussions were reflected as appropriate in the [Draft] ECA. ↩

  30. Agenda paper 4 of the UKEB 12 December 2024 meeting. ↩

  31. In accordance with the Due Process Handbook. ↩

  32. The meeting summaries were made available on the UKEB website. The Secretariat met with IAG on 2 June 2025; with PAG on 16 June 2025 and with AFIAG on 10 June 2025. The outcome of those discussions were reflected as appropriate in the [Draft] ECA. ↩

  33. In accordance with the Due Process Handbook. ↩

  34. In accordance with the Due Process Handbook. ↩

  35. In accordance with the Due Process Handbook. ↩

  36. In accordance with the Due Process Handbook. ↩

  37. In accordance with the Due Process Handbook. ↩

  38. In accordance with the Due Process Handbook. ↩

  39. In accordance with the Due Process Handbook. ↩

  40. In accordance with the Due Process Handbook. ↩

  41. In accordance with the Due Process Handbook. ↩

  42. In accordance with the Due Process Handbook. ↩

  43. In accordance with the Due Process Handbook. ↩

  44. In accordance with the Due Process Handbook. ↩

  45. In accordance with the Due Process Handbook. ↩

  46. In accordance with the Due Process Handbook. ↩

  47. In accordance with the Due Process Handbook. ↩

  48. UKEB Due Process Handbook- 'Influencing tentative agenda decisions', paragraphs 5.27 - 5.33. ↩

  49. In accordance with the Due Process Handbook. ↩

  50. In accordance with the Due Process Handbook. ↩

  51. In accordance with the Due Process Handbook. ↩

  52. In accordance with the Due Process Handbook. ↩

  53. In accordance with the Due Process Handbook. ↩

  54. In accordance with the Due Process Handbook. ↩

  55. In accordance with the Due Process Handbook. ↩

  56. In accordance with the Due Process Handbook. ↩

  57. In accordance with the Due Process Handbook. ↩

  58. In accordance with the Due Process Handbook. ↩

  59. In accordance with the Due Process Handbook. ↩

  60. In accordance with the Due Process Handbook. ↩

  61. In accordance with the Due Process Handbook. ↩

  62. In accordance with the Due Process Handbook. ↩

  63. In accordance with the Due Process Handbook. ↩

  64. In accordance with the Due Process Handbook. ↩