Minutes of UKEB Public Meeting 26 February 2026

Meeting Date/Time: 26 February 2026 at 10:40 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. 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 24 February 2026 and on Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21) on 26 February 2026.
3. 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 29 January 2026 for publication on the website. (Decision)

4. Regulatory Strategy 2026/27

1. The Board considered the final draft of the UKEB's Regulatory Strategy 2026/27 and Draft Feedback Statement, addressing the stakeholder feedback received.
2. The Board agreed, following stakeholder feedback, to include its intention to publish a research project pipeline on the UKEB website. (Decision)
3. The Board noted that the UKEB had received five comment letters following the consultation on the Regulatory Strategy. The feedback was supportive of the UKEB's proposed strategy and direction.
4. The draft Strategy document had been updated to include the UKEB's ‘Other Functions’ below its ‘Statutory Functions'. The UKEB's remit to consider the connectivity between IFRS Accounting Standards and IFRS Sustainability Disclosure Standards was highlighted as an important role by stakeholders.
5. The Board approved the Regulatory Strategy 2026/27 and Feedback Statement for publication, subject to its comments. (Decision)

Endorsement and Adoption

5. Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21)

1. The Board considered a draft Project Initiation Plan (PIP) to assess whether to adopt, for use in the UK, Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates) (the Amendments). The narrow scope Amendments have an effective date of 1 January 2027, with earlier application permitted.
2. The Board noted that the UKEB did not influence the development of the Amendments due to the lack of direct impact for UK companies identified in the Secretariat's research. It was noted that the Amendments are narrow and only stipulate the translation requirements for two fact patterns.
3. The Board noted the proposed amendment to the timeline outlined in the PIP and agreed that the Draft Endorsement Criteria Assessment will now be presented at the April 2026 Board meeting, with the Endorsement Package being presented for consideration at its September 2026 meeting. (Decision)
4. 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)

Influencing

6. Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (IAS 28)

1. The Board considered the Draft Comment Letter (DCL) and related Invitation to Comment (ITC) in response to the IASB Exposure Draft Amendments to the Fair Value Option for Investments in Associates and Joint Ventures (ED).
2. The Board noted that the IASB issued its ED on 19 February 2026 with a 60-day comment period and that the wording in the ED differs from the proposed wording previously shared with the Board at its January 2026 meeting. The DCL does not raise a concern on this wording.
3. The Board agreed to include a point in the DCL proposing a more principles-based and concise form of drafting for the changes in scope. It also agreed to include a question in the ITC in relation to the point in the DCL relating to the Basis for Conclusions. (Decision)
4. The Board considered the alternative views included in the ED and noted that more investigation would be required than could be undertaken in the context of this project. The Board agreed to include a paragraph setting the context in the DCL and agreed to seek feedback from stakeholders via the ITC. (Decision)
5. The Board agreed it was appropriate to finalise its FCL at its April 2026 meeting, allowing for a 30-day consultation, even though that falls after the IASB comment letter deadline. The Chair will ensure IASB members see the FCL, which will in any case be available in draft form ahead of the deadline. (Decision)
6. Subject to the comments made at the meeting, and final approval by the Chair, the Board approved the DCL, with a 30-day comment period, and ITC for publication on the UKEB website. (Decision)

7. Risk Mitigation Accounting: Initial technical discussion

1. The Board had an initial technical discussion on key aspects of the IASB's ED Risk Mitigation Accounting (Proposed amendments to IFRS 9 and IFRS 7).
2. The Board noted the IASB's decision for the proposals to depart from certain aspects of the Conceptual Framework for Financial Reporting. The Board discussion also included other key aspects such as the scope and objective of the proposals noting that although the proposals are not industry specific, it is unclear whether the proposed model would be suitable for non-banks. The potential implications of transitioning to the proposed model were also discussed.
3. The Board commented that the proposed amendments are complex but acknowledged that this reflects the underlying complexity of risk management activities. They observed it will be important to understand the extent to which the proposed model works in practice. They also expect that stakeholder feedback will continue to evolve as the project and field-testing progress.
4. The Board agreed with the Secretariat's proposed approach to the DCL, emphasising that it will need to be at a relatively high level and focused on a limited number of key issues. (Decision)

UKEB Post-implementation Review

8. UKEB Post-implementation Review of IFRS 17 Insurance Contracts

1. The Board considered an updated draft PIP, following comments made at the January 2026 meeting, for the UKEB post-implementation review (PIR) of IFRS 17 Insurance Contracts. This was the first standard adopted by the UKEB, for use by UK entities, that it considered was 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. 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)

Monitoring

9. IASB General Update

1. The Board provided advice to the Chair and Technical Director regarding the following three issues to be considered at the March 2026 Accounting Standards Advisory Forum (ASAF) meeting:

Connections between financial statements and sustainability disclosures

1. The Board considered the EFRAG discussion paper Connectivity of Financial and Sustainability Reporting. The Board noted that the research indicated a significant connectivity gap across general purpose financial reports. It was observed that while sustainability disclosures and financial statements served different purposes, connections should be transparent where there could be a material financial impact in the financial statements.
2. The Board suggested that connectivity should act as a filter, helping to identify which sustainability matters may have material financial impacts. Board members raised concerns regarding poor application in practice and the growing volume of boilerplate sustainability disclosures.

Post-implementation Review of IFRS 16 Leases

1. The paper provided the Board with an overview of the first tranche of feedback the IASB received on its Request for Information (RFI) on the PIR of IFRS 16. The feedback broadly aligns with the UKEB's final comment letter on the RFI, including that IFRS 16 was operating as intended, however ongoing costs continue to be higher than expected.

Statement of Cash Flows and Related Matters

1. The Board considered some example disclosures developed by the IASB staff as part of the IASB's project on the Statement of Cash Flows and Related Matters. The disclosures addressed non-cash transactions, other non-cash changes in balances of specified operating assets and liabilities, and changes in liabilities arising from financing activities.
2. The Board suggested the example disclosures are directionally positive but require some improvement. They suggested that prescribing clearer requirements, without ‘one-size-fits-all’ templates, may be better to support useful disclosure. The importance of requiring a net debt reconciliation was also highlighted, along with recommending that the IASB embed expectations for qualitative explanations (management commentary) on cash flow drivers.

Other projects

1. The Board noted updates on various projects being considered by the IASB, including: Equity Method; Post-implementation Review of IFRS 9 Hedge Accounting, Intangible Assets; and the list of IASB Projects.

10. IFRS Interpretations Committee Update

1. The Board noted the IFRS Interpretations Committee Update.

11. Advisory Groups Update

1. The Board received an update from the chair of the Investor 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.

12. Items for Noting

1. The Board noted the following papers: - UK Sustainability Disclosure Technical Advisory Committee Update. - Sustainability Update.

13. Any other business

1. The Board noted that this was Phil Aspin's and Mike Wells' last Board meeting as their terms end on 14 March 2026. The Board conveyed its appreciation for their valuable contribution to UKEB's achievements to date.

The meeting ended at 14:51 hrs.