DPCS - Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability
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
Added to UKEB Technical Work Plan [Due Process Handbook (Handbook) 4.30]
| Mandatory / Optional¹ | 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 decisions². The Project Initiation Plan was approved at the 20 November 2025 Board meeting. |
| 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. |
Education Sessions [Handbook 4.10]
| Mandatory / Optional¹ ² | 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. |
Desk-based Research
Desk-based Research [Handbook 5.9 and A3]
| Mandatory / Optional¹ ² | 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
Outreach Activities [Handbook 5.10 to 5.12 and A4 to A8]
| Mandatory / Optional¹ ² | 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)
DCL Published for Comment (Mandatory unless Impracticable) [Handbook 5.13 to 5.17 and A4(d)]
| Mandatory / Optional¹ ² | 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. |
Project Finalisation and Project Closure
Final Comment Letter (FCL) [Handbook 5.18 and A4(d)]
| Mandatory / Optional¹ ² | 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. |
Feedback Statement [Handbook 5.19 to 5.22 and A9 to A11]
| Mandatory / Optional¹ ² | 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 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. |
| Mandatory | Feedback Statement published on the UKEB website | Not Applicable. See above comment. |
Due Process Compliance Statement (DPCS) [Handbook 5.23 to 5.26 and A12 to A14]
| Mandatory / Optional¹ ² | 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 UKEB website | Complete: The final DPCS was published on the UKEB website after the 29 January 2026 Board meeting. |
Ongoing Communications
Public Board Meetings [Handbook 4.10]
| Mandatory / Optional¹ ² | 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. |
Secretariat Papers [Handbook 4.20]
| Mandatory / Optional¹ ² | 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. |
Project Webpage [Handbook 4.25(b)]
| Mandatory / Optional¹ ² | 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. |
Subscriber Alerts [Handbook 4.24]
| Mandatory / Optional¹ ² | 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. |
News Alerts [Handbook 4.24]
| Mandatory / Optional¹ ² | 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.