7 UKEB Due Process Handbook Review

25 June 2026 Agenda Paper 7 OFFICIAL - PUBLIC

Executive Summary

Project Type
UKEB Governance

Project Scope
Moderate

Purpose of the paper
The purpose of this paper is to set out the proposed approach to revising and streamlining the current UKEB Due Process Handbook.

Summary of the Issue
The DPH sets out the due process requirements which the UKEB follows when carrying out its statutory functions.

The UKEB Terms of Reference set out the UKEB’s role and responsibilities as they relate to the statutory functions. Paragraph 10.2(c) requires the UKEB to review its DPH at least once every five years, to ensure it is meeting the guiding principles and to make any revisions deemed appropriate.

As the DPH was published in December 2022, a review is required by the end of 2027. Given the project does not relate to its technical work, the intended approach to this project will not incorporate a PIP. However, in line with the UKEB’s guiding principles of accountability and transparency, a proposed project timeline is set out at the end of this paper.

Decisions for the Board
1. Does the Board agree to consider a proposed [Draft] revised DPH at the July 2026 meeting, with a view to publishing it for stakeholder consultation in the autumn? 2. The UKEB is required to a take a proportionate approach to projects. Does the Board have any suggestions on how the DPH revisions could deliver a proportionate approach?

Recommendation
The Board agrees to the proposed approach.

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Appendices * Appendix A: Background

DPH Review Approach

Revised DPH

1The Board agreed, at its February 2026 meeting, to commence a project to revise the UKEB Due Process Handbook (DPH), which aims to simplify and streamline the current version (December 2022).

2The Board is an independent body with delegated powers. Its terms of reference require it to report to the Secretary of State on how it has carried out its statutory functions. Therefore, the proposed revised DPH will focus on the requirements in the legislation and the Board’s Terms of Reference (see Appendix A).

3It is essential that the Board’s work is carried out in a clear and transparent manner and that stakeholders with an interest in the UK’s capital markets are engaged throughout. The Board must also ensure that a proportionate approach is taken to its work. A description of common due process milestones is set out in Appendix A, including the mandatory steps for the different types of projects the UKEB carries out.

4As per the Board’s focus on the UK long term public good, the revisions to the DPH would be aimed at balancing the needs of investors and businesses, and supporting effective and efficient capital allocation and growth in the economy.

5The [Draft] revised DPH will also ensure the UKEB continues to provide stakeholders with opportunities to engage in its work and to provide comments and views on its priority projects.

6The accompanying due process documents (e.g. the PIP, Feedback Statement and Due Process Compliance Statement) will be reviewed with the aim for them to be clearer, more concise, and focused on the key issues. This should benefit both the Board and UKEB stakeholders. More accessible documentation could also help to increase engagement with the UKEB’s work.

7A high-level summary of proposed changes is set out in the table below:

Consultation

8The Terms of Reference (ToR) only require the UKEB to consult on revisions to the DPH “as deemed appropriate” by the Board. However, transparency and consultation remain at the heart of the UKEB’s stakeholder engagement. Therefore, the Board will consider the (Draft) revised DPH in public. This mirrors the approach taken by other standard setters, e.g. the IFRS Foundation. Similarly, the feedback statement and final revised DPH will be considered at public Board meetings.

9The proposed project timeline is set out below.

Project Timeline

Questions for the Board

1. Does the Board agree to consider a [Draft] revised DPH at the July 2026 meeting, with a view to publishing it for stakeholder consultation in the autumn?
2. The UKEB is required to a take a proportionate approach to projects. Does the Board have any suggestions on how the DPH revisions could deliver a proportionate approach?

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Appendix A: Due Process Handbook

Background

UKEB Terms of Reference

A1The UKEB adopted its Terms of Reference (ToR) when it was established, on 26 March 2021.

A2The ToR set out the UKEB’s role and responsibilities as they relate to the statutory functions of:

1. influencing the development of international accounting standards and the other activities of the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee; and
2. endorsing and adopting new international accounting standards, amendments to international accounting standards or IFRIC Interpretations for use in the UK.

A3Paragraph 3.2(d) requires the UKEB to “develop, maintain and follow rules of procedural fairness and transparency in relation to the exercise of its functions in a Due Process Handbook which shall set out:

1. Appropriate procedures and policies for the work undertaken by the Endorsement Board.
2. Matters which shall be subject to public consultation with a representative range of stakeholders.
3. The UK Endorsement Board’s policy on what amounts to a significant change in accounting practice, and for the standards that meet the criteria in regulation 7 of SI 2019/685, the appropriate due process for the review of the impact of the adoption of the standard.”

A4Paragraph 4.2 (c)-(e) and (g) of the ToR requires the UKEB to:

1. Provide a clear, publicly available rationale for its decisions.
2. Consult with UK stakeholders affected by financial reporting and analyse the potential impacts of IASB proposals.
3. Undertake assessments of the IASB’s proposals against the endorsement criteria. (Legislative requirement under SI 2019/685)
4. Undertake relevant impact assessments in line with the administrative and legal requirements of the BEIS Better Regulation Framework.

A5Paragraph 10.2(c) requires the UKEB to review the DPH at least once every five years, “to ensure that it is meeting the guiding principles… and to make any necessary revisions following such consultation as deemed appropriate by the UK Endorsement Board”.

Development of the UKEB Due Process Handbook

A6From May 2021 onwards, the proposed content and form of the UKEB DPH was considered and discussed in public meetings by the inaugural UKEB Board.

A7On 21 February 2022, the (Draft) DPH was published for a 15-week consultation, which closed on 6 June 2022. The Board received 6 comment letters¹ and the FRC provided additional feedback via email.

A8The Board approved the DPH at its public meeting in October 2022 and the Handbook was published on the UKEB website on 20 December 2022.

Mandatory / non-mandatory milestones

A9For each type of project the UKEB carries out, the DPH specifies common milestones and whether, or not, they are mandatory. The project types, their common milestones, and a description of the individual milestones, are set out in the tables below.

Table 1 - Project types and common milestones2

Table 2 - Description of common milestones

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