Minutes of UKEB Public Meeting 20 November 2025

Meeting Date/Time: 20 November 2025 at 10:00 hrs Meeting Location: 1 Harbour Exchange, Harbour Exchange Square, London, E14 9GE

The recording of the meeting and the agenda papers have been made available on the UKEB's website.

PRESENT:

1. Welcome and Apologies

1. The Chair noted that the meeting was being recorded, and the recording would be published on the UKEB website after the meeting.
2. There were no apologies.

2. Declarations of Interest

1. The Board noted the following declaration:
   1. Phil Aspin's employer is involved in rate-regulated activities.

3. Administrative Matters

1. The Board approved the minutes of the previous meeting held on 30 October 2025 for publication on the website. (Decision)

Endorsement and Adoption

4. IFRS 18 Presentation and Disclosure in Financial Statements

1. The Board considered and approved, subject to the comments made at the meeting and final review by the Chair, the Endorsement Criteria Assessment (ECA), the Feedback Statement (FBS) and the (Draft) Due Process Compliance Statement (DPCS) for IFRS 18 Presentation and Disclosure in Financial Statements.
2. The Board considered the provisional assessment of the concerns raised about the classification of insurance finance income and expenses in the operating category. The Board asked the Secretariat to include it as part of the 'Individual assessment of technical issues raised by UK stakeholders' section in Appendix B of the ECA subject to the comments made at the meeting. (Decision)
3. The Board asked the Secretariat to share the revised ECA prior to its publication.
4. All 12 Board members present at the meeting voted to tentatively approve IFRS 18 Presentation and Disclosure in Financial Statements for use in the UK. (Decision)
5. The Board will be issued with ballots, together with the other relevant documents, to provide their formal written votes. The finalisation of that formal written vote will commence the process for publication of the Standard in line with the Board's Terms of Reference.
6. The Board agreed that the final DPCS would be presented, for noting, at the January 2026 Board meeting. (Decision)

5. IFRS 19 Subsidiaries without Public Accountability: Disclosures

1. The Board considered a revised version of the full [Draft] Endorsement Criteria Assessment ([Draft] ECA) and Invitation to Comment (ITC) in respect of the IFRS 19 Subsidiaries without Public Accountability: Disclosures endorsement project.
2. The Board agreed to include the Legal Context in the [Draft] ECA in relation to the definition of public accountability in IFRS 19, and to consult on whether stakeholders agree with the UKEB's view that the Companies Act 2006 definitions of “public interest entity” and “public interest company" are not relevant in the context of reporting under UK-adopted international accounting standards. (Decision)
3. The Board supported the tentative view that IFRS 19 is not likely to lead to a significant change in accounting practice.
4. Subject to the comments made at the meeting, and final approval by the Chair, the Board approved the [Draft] ECA and the ITC for publication on the UKEB website, with a 90-day comment period. (Decision)
5. The Board agreed with the planned outreach activities following the publication of the [Draft] ECA. (Decision)

Thought Leadership

6. Statement of Cash Flows and Related Matters

1. The Board considered the UKEB's fifth research paper on the Statement of Cash Flows and Related Matters, which focuses on the prevalence of net debt disclosures globally, and their importance to users of financial statements. The paper also considers how the IASB might improve the accessibility and comparability of this key metric.
2. The Board acknowledged the findings that net debt disclosures are not just prevalent in the UK, but in several other jurisdictions with significant capital markets. The findings were as expected, given that net debt is widely used by investors, often indirectly as part of enterprise value (EV) calculations.
3. The Board supported the suggestion in the paper that the IASB extend the existing requirements in IAS 7 Statement of Cash Flows to include net debt disclosures. This will address a long-standing investor priority.
4. The Board agreed that if the concept of management-defined performance measures introduced in IFRS 18 was extended to cash flow measures, an IFRS-defined minimum net debt metric would enhance comparability, while allowing entity-specific measures to be disclosed. The Board suggested that the UKEB research paper highlights earlier work undertaken by the UKEB on the varying components of net debt, specifically emphasising a need for the IASB to clarify how lease liabilities should be treated.
5. The Board also suggested that the summary of previous UKEB research undertaken (as set out in Annex 1) could be made more concise.
6. Subject to the comments made at the meeting, the Board agreed that a final version of the research findings should be published on the UKEB website. (Decision)

Monitoring

7. IASB General Update

IFRS Interpretations Committee Update

1. The Board considered a potential response to the IFRS Interpretations Committee's (the Committee) Tentative Agenda Decision (TAD) Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18).
2. The Board agreed that a standard-setting project should not be added to the IASB's work plan on the basis of a cost-benefit analysis.
3. The Board agreed, subject to the comments made at the meeting, and final review by the Chair, that the UKEB should respond to the Committee's ITC on the TAD. (Decision)
4. The Board approved the Project Initiation Plan, Final Comment Letter (FCL) and [Draft] DPCS. (Decision)
5. The Board agreed, given that no UKEB consultation document will be published, and all stakeholder feedback has been considered and reflected accordingly in the draft FCL, that no FBS should be prepared for this project. (Decision)

IFRS Interpretations Committee Update – additional paper

1. The Board considered a late paper outlining five new draft TADs presented for consideration by the Committee at its forthcoming November 2025 meeting. This paper was published late, as the draft TADs were only available after the UKEB Board paper publication deadline. The Board had considered four of the items at its October 2025 meeting and had concluded, at that meeting, that no significant additional work was required.
2. The Board agreed that additional outreach be undertaken, ahead of its January 2026 Board meeting, on two items: Classification of Gains and Losses on a Derivative Managing a Foreign Currency Exposure (IFRS 18), and Scope of the requirement to disclose expenses by nature (IFRS 18). (Decision)
3. The Board agreed that the UKEB will not respond to ITCs from the Committee on the following TADs proposed by the IASB staff: (Decision)
   1. Assessment of a Specified Main Business Activity for the purposes of the Separate Financial Statements of a Parent (IFRS 18).
   2. Fair presentation and compliance with IFRS Accounting Standards (IAS 1).
   3. Presentation of Taxes or Other Charges that are Not Income Taxes within the Scope of IAS 12 (IFRS 18).

Amortised Cost Measurement

1. The Board provided feedback on the IASB's project Amortised Cost Measurement, to be discussed at the forthcoming Accounting Standards Advisory Forum (ASAF) December 2025 meeting. The Board discussion focused on possible changes to the accounting requirements in IFRS 9 Financial Instruments for subsequent changes in Effective Interest Rate for financial assets and liabilities and modifications of financial instruments.

Provisions – Targeted Improvements

1. The Board discussed the IASB's project Provisions – Targeted Improvements, with a focus on the IASB's suggested possible application requirements for levies and its recent tentative decisions on discount rates, ahead of the forthcoming ASAF meeting.
2. In discussion, the Board noted that the proposals on levies could be viewed as overly complex and highlighted the risk of potential unintended consequences. There was a strong consensus for suggesting the IASB retain IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 21 Levies and, potentially, undertake a separate project on non-reciprocal transactions.

IASB’s Project Prioritisation Framework

1. The Board agreed with the Secretariat's proposed approach to the forthcoming ASAF meeting. The Board emphasised that the IASB could improve the Project Prioritisation Framework by including a specific and separate criterion for the consideration of accounting principles.

Statement of Cash Flows and Related Matters

1. The Board considered the IASB's request for feedback ahead of the December 2025 ASAF meeting on:
   1. Improving the reporting of information about non-cash transactions and some other non-cash changes in balances – the Board supported the existing principle in IAS 7 Statement of Cash Flows requiring disclosure of non-cash transactions for investing and financing activities to be extended to operating activities. The Board also supported specific disclosures for working capital and change in financing liabilities, but suggested extending the requirements to include a net debt reconciliation.
   2. Improving the transparency of information about cash flow measures the Board supported the extension, of the management-defined performance measure (MPM) model in IFRS 18, to cash flow measures.

Business Combinations – Disclosures, Goodwill and Impairment

1. The Board considered the disclosure of performance information and expected synergy information for business combinations, which will be discussed at the December 2025 ASAF meeting. They expressed concern that the location for such disclosures was the audited financial statements, and suggested the management commentary section of the annual report might be more appropriate.
2. The Board thought it reasonable for a company to disclose, in a qualitative statement, whether acquisition-date key objectives and targets are subsequently being met, where such information is prepared and reviewed by management.
3. The Board supported the suggestion of companies being required to provide the basis of preparation for both acquisition-date key objectives and targets (subsequent performance information) and expected synergies.
4. The Board disagreed with the proposal to only require expected synergy disclosures for business combinations that result in goodwill.

Rate-regulated Activities

1. The Board provided comments on the sweep issues identified by the IASB during the balloting process for the prospective IFRS Accounting Standard Regulatory Assets and Regulatory Liabilities.
2. The Board supported the positive move from a rules-based to a principles-based approach.

1. The Board noted concerns around the retention of prohibition of recognising inflation adjustments to the regulatory capital base. It was also noted that the IASB had changed its views on the nature of the inflation adjustment.

Intangible Assets

1. The Board emphasised the importance of the IASB developing clear principles rather than piecemeal changes to its project on Intangible Assets. The principles should take into account the purpose to which the asset will be put.

Other projects

1. The Board noted updates on various projects being considered by the IASB, including: Business Combinations under Common Control; Equity Method; and the list of IASB projects.

Thought Leadership

8. UKEB Research Consultation

1. The Board noted that feedback on the UKEB's Regulatory Strategy (2025-2028) highlighted that stakeholders wanted more information on how the UKEB prioritises projects and an opportunity to comment on the proactive research projects it chooses.
2. The Board considered and approved, subject to the comments made at the meeting, and final review by the Chair, the UKEB Research Consultation ITC document for publication on the UKEB website. (Decision)

Monitoring

9. Advisory Groups Update

1. The Board received updates from the respective chairs of the Investor Advisory Group and the Accounting Firms and Institutes Advisory Group, including overviews of the discussion at their recent meetings. The minutes of which were to be published after the Board meeting.

10. Items for Noting

1. The Board noted the following papers:
   1. Technical Advisory Committee Update.
   2. Sustainability Update.

11. Any other business

1. The Board agreed to cancel its December 2025 Board meeting. (Decision)
2. There was no other business.

The meeting ended at 15:43 hrs.