Minutes of UKEB Public Meeting 29 January 2026

Meeting Date/Time: 29 January 2026 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.

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. The Board had received education sessions on the IASB's Exposure Draft (ED) Risk Mitigation Accounting (Proposed amendments to IFRS 9 and IFRS 7) on 9 December 2025 and 27 January 2026.
3. The Board noted apologies from Peter Reilly and Edward Knapp.

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 20 November 2025 for publication on the website. (Decision)

Influencing

4. Risk Mitigation Accounting

1. The Board considered a draft Project Initiation Plan (PIP) to influence the IASB's Exposure Draft (ED) Risk Mitigation Accounting (Proposed amendments to IFRS 9 and IFRS 7). It was noted that the IASB is also encouraging field testing of the proposals. Preliminary field test results are due by 31 July 2026, with the final results to be submitted by 30 November 2026.
2. The Board noted the successful roundtable event, held on 15 January 2026, aimed at exchanging initial views on the proposed amendments. The UKEB's Financial Instruments Working Group (FIWG) members, external attendees from various disciplines with an interest in risk mitigation accounting, and UKEB Board Members were in attendance.
3. The Board considered the timing for the publication of its Draft Comment Letter (DCL). The Board considered that a balance needs to be struck between allowing time for the Board to develop a considered DCL and to enable stakeholders to respond to the published DCL. Therefore, sufficient flexibility on the timing of the publication of the DCL should be incorporated into the PIP.
4. The Board agreed to discuss a technical paper, describing the key issues with the ED identified by stakeholders, at the February 2026 Board meeting. It requested that a proposed DCL be presented for consideration by the Board in March 2026. The DCL is expected to be published following either the March or April 2026 Board meeting. (Decision)
5. The Board agreed that, after the submission of the Final Comment Letter, the Secretariat should continue to engage with relevant UK stakeholders to obtain further feedback on final UK field test results. This would be shared with the Board in due course, for consideration of how best to share any additional input with the IASB. (Decision)
6. Subject to the two decisions above, and the necessary amendments requested during the meeting, and final approval by the Chair, the Board approved the PIP for publication on the UKEB website. (Decision)

5. Amendments to the Fair Value Option (IAS 28)

1. The Board considered a combined PIP for the influencing and endorsement phases of the project relating to the IASB's narrow scope Amendments to the Fair Value Option (IAS 28), for which an ED is expected in February 2026. The IASB has identified this as an urgent issue. It is connected to some entities' application of IFRS 18 Presentation and Disclosure in Financial Statements, which is required to be applied from 1 January 2027.
2. The Board discussed the amendment made by the IASB to the wording used in its December 2025 Board paper which referred to investing in assets as a main business activity. The IASB Update wording subsequently referred to 'investing in associates and joint ventures as a main business activity'. Several Board members expressed concern that this updated wording could be more restrictive than the current wording in IAS 28.
3. The Board discussed the proposed timeline for the project. The Board approved the proposed shortened 14-day DCL consultation period, if it is considered necessary to deliver comments ahead of the relevant IASB meeting. (Decision) However, it expressed a preference for allowing stakeholders 30 days to comment on its DCL, if the UKEB's Final Comment Letter could be delivered to the IASB in time for them to consider the UKEB's comments.
4. The Board approved the shortened consultation period of 80-days for the Draft Endorsement Criteria Assessment, to consider an adoption package at the October 2026 UKEB meeting, with a formal endorsement vote in early November 2026. (Decision)
5. Subject to the comments made at the meeting, and final approval by the Chair, the Board approved the PIP for publication on the UKEB website. (Decision)

UKEB Post-implementation Review

6. Post-implementation Review of IFRS 17 Insurance Contracts

1. The Board considered a draft PIP for the UKEB post-implementation review (PIR) of IFRS 17 Insurance Contracts. This was the first standard adopted by the UKEB that was considered likely to lead to a significant change in accounting practice. The UKEB is therefore required, under the legislation, to conduct a PIR and publish a report of the results no later than 1 January 2028.
2. The Board considered that the objective of the PIR should be to assess the implementation of IFRS 17 in the UK. The Board discussed the scope of the UKEB PIR as well as establishing a high threshold for inclusion of any identified matters in the final report. This high threshold would mean that any identified matters in the report should be specific to UK entities in scope of the Standard.
3. In addition, the Board plans to use the output of this PIR to influence the IASB's PIR of IFRS 17. It therefore directed that the UKEB's project should also have regard to the objective and thresholds of an IASB PIR.
4. The Board agreed that, given this is the first UKEB PIR of an adopted standard, the PIP should include a 'lessons learned' step at the end. (Decision)
5. Subject to the comments made at the meeting, and final approval by the Chair, the Board agreed that a revised draft PIP will be presented at the February 2026 meeting for its consideration and final approval. (Decision)

Thought Leadership

7. Intangible Assets

1. The Board considered three draft case studies – research and development (R&D) costs, training costs, and carbon credits - designed to explore stakeholder perspectives on intangible assets. The case studies will be discussed by the Secretariat at stakeholder workshops to explore principles for accounting for intangibles.
2. Board Members discussed the key issues that could be explored in each case study and the potential approaches to address those issues. It requested that the Secretariat continue to develop the questions asked in workshops to ensure information obtained from stakeholders is relevant.
3. The Board noted the IASB's decision not to pursue test cases on Artificial Intelligence (AI) and data. The Board supported the proposal for the Secretariat to explore the development of its own data-focused case study, subject to resources.
4. The Board agreed that the selected case studies, and one on data (potentially incorporating one or more components of AI), should be used during workshops with UK stakeholders to collate their views on the accounting for intangibles. (Decision)

Monitoring

8. IASB General Update

Provisions – Targeted Improvements

1. The Board considered the most recent IASB tentative decisions on the Provisions – Targeted Improvements project, expressing continued concerns about the proposed amendments, including:
   1. In relation to legal obligations, the Board disagreed with the proposed assessment of economic consequences for the entity not discharging the responsibility. In the Board's view, such an assessment should be considered in the measurement of the provision and not in the assessment of whether an obligation exists. There was also a concern raised in relation to the revised wording, including the term 'judicial body' for potentially failing to reflect modern enforcement routes.
   2. The Board also expressed concerns about the requirements for constructive obligations. It was considered that the IASB's proposals could be perceived as giving constructive obligations an equivalent status to that of legal obligations (i.e. although slightly different, the 'no practical ability to avoid test' would apply to both types of obligations).
2. The Board noted that the IASB is expected to decide on the project direction in March 2026. The Board agreed that a more proactive influencing approach was needed and a suggestion that the UKEB engage directly with IASB staff on this project was welcomed. (Decision)

Other projects

1. The Board noted updates on various projects being considered by the IASB, including: Statement of Cash Flows and Related Matters; Business Combinations – Disclosure, Goodwill and Impairment; Equity Method; Disclosures about Uncertainties in the Financial Statements; and the IASB's draft Prioritisation Framework.

9. IFRS Interpretations Committee Update

1. The Board agreed that the UKEB will not undertake substantive work at this time on the following new pipeline issues: Assessment of control over a single-investor fund (IFRS 10); and on the Reassessment of relevant activities (IFRS 10). (Decision)
2. The Board agreed that the UKEB will not respond to the Committee's invitation to comment (ITC) on the Tentative Agenda Decisions (TADs): 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 the Committee's ITC on the following amended and re-exposed TADs: Presentation of payments on non-income taxes (IAS 1 and IAS 12); and Classification of tonnage taxes (IAS 12). (Decision)

10. Advisory Groups Update

1. The Board received an update from the chair of the Rate Regulated Activities Technical Advisory Group, including an overview of the discussion at its recent meeting for which the minutes were expected to be published after the Board meeting.
2. The Board also received an update from the chair of the Financial Instruments Working Group, including the feedback received at the Roundtable event on Risk Mitigation Accounting, held on 15 January 2026.

11. Items for Noting

1. The Board noted the following papers:
   1. UK Sustainability Disclosure Technical Advisory Committee Update.
   2. Sustainability Update.
   3. Due Process Compliance Statement: IFRS 18 Presentation and Disclosure in Financial Statements.
   4. 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).

12. Any other business

1. There was no other business.

The meeting ended at 14:02 hrs.