Minutes of UKEB Public Meeting 21 May 2026

Meeting Date/Time: 21 May 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.

PRESENT:

1. Welcome and Apologies

a) The Chair noted that the meeting was being recorded, and the recording would be published on the UKEB website after the meeting.

b) The Board noted apologies from Mike Ashley and Mark Gregory.

2. Declarations of Interest

a) The Board noted the following declaration:

i. Rob McPheely’s employer is involved in rate-regulated activities

3. Administrative Matters

a) The Board approved the minutes of the previous meeting held on 23 April 2026 for publication on the website. (Decision)

Influencing

4. Risk Mitigation Accounting: Proposed amendments to IFRS 9 and IFRS 7: Project Update

a) The UKEB published its Draft Comment Letter (DCL), and related Invitation to Comment (ITC), on 28 April 2026 for public consultation with a comment period of approximately 60 days, for the influencing phase of the project relating to the IASB’s Exposure Draft Risk Mitigation Accounting – Proposed amendments to IFRS 9 and IFRS 7.

b) The Board noted that the IASB decided to extend the comment period of its public consultation from 31 July 2026 to 30 November 2026 to align the deadline for the comment letters with their existing deadline for the submission of field work results.

c) The Board discussed extending the UKEB’s DCL comment period. While considering an extension, the Board requested that it be provided with regular updates on stakeholder feedback received during the comment period. The Board also noted the importance of maintaining contact with the IASB team during that period to highlight that interim feedback and any Board views.

d) The Board agreed to extend the comment period for the ITC on the UKEB’s DCL from 60 days to approximately 175 days. (Decision)

e) The Board agreed that the amended Project Initiation Plan and ITC be re-published on the UKEB project page with the amended comment deadline. (Decision)

5. Provisions – Targeted Improvements: Transfer Conditions

a) The Board received an update on the IASB’s tentative decisions made on the Provisions – Targeted Improvements Project, which focused on the redeliberation of the proposed transfer condition in IAS 37.

b) The Board expressed concerns about the complexity and lack of clarity of the proposals regarding the transfer condition and about the significant changes made to the ED proposals during the IASB’s redeliberation of the proposals.

c) The Board raised concerns that the inconsistent use of terminology with that in other IFRS Accounting Standards, and the lack of clear and common definitions, could increase the risk of confusion.

d) The Board considered that accounting for levies do not fit naturally in IAS 37 and this was clear from the IASB’s redeliberation of the proposals so far.

e) The Board discussed the risk of unintended consequences and expressed concern that changes could affect other areas of environmental obligations, decommissioning and carbon taxes.

f) The Board noted that a comprehensive paper setting out the IASB’s proposals to date will be brought for its consideration at the June 2026 meeting.

Thought Leadership

6. Intangible Assets

a) The Board noted the preliminary stakeholder feedback arising from the UKEB case studies on training costs, research and development costs, carbon credits, and data.

b) The Board agreed the case studies are useful in supporting practical, nuanced discussions with stakeholders and expects further insight from upcoming workshops.

c) Feedback to-date appeared to show divergent views on recognition and measurement, but consistent support for enhanced disclosures to enable users to form their own judgements.

d) The Board asked the Secretariat to prioritise future outreach on:

i. Unit of account – how it should be defined and applied to intangibles, noting concern about any use of a portfolio approach.

ii. Recognition vs disclosure – assessing whether recognition and measurement, disclosure-only or a hybrid approach, best supports decision-usefulness and comparability.

iii. Disclosure – identifying what information constitutes improved disclosure, including the level of detail and user needs.

iv. Data – clarifying whether the focus is on data itself, the associated platforms and systems, or a combination.

v. Commercial sensitivity – understanding how it constrains disclosure and whether these constraints can be mitigated.

e) A summary of further stakeholder feedback will be presented at a future meeting, incorporating insights from additional workshops and outreach.

7. Statements of Cash Flows and Related Matters

a) The Board discussed and provided feedback on the research paper Statement of Cash Flows and Related Matters: Further Research – Financial Institutions, setting out stakeholder feedback on, and potential solutions to improve, the usefulness of information provided by banks and insurance companies.

b) The Board suggested ways to improve the impact of the paper, including providing an example of a simplified statement of cash flow that could reconcile with regulatory disclosures.

c) A revised version of the research paper will be presented to the Board at its June 2026 meeting.

Monitoring

8. IASB General Update

a) The Board provided advice to the Chair and Technical Director regarding the following two topics expected to be discussed at the July 2026 ASAF meeting.

Rate-regulated Activities

b) The Board received an update on the IASB’s proposed implementation support package for IFRS 20 Regulatory Assets and Regulatory Liabilities. It noted the IASB’s decision not to establish a Technical Resource Group (TRG), instead relying on guidance, examples and stakeholder outreach.

c) While the Board welcomed the IASB’s support package in general, it noted concerns at the lack of a TRG to support the international implementation of the standard, given its complexity and expected diversity in practice. The Board noted that IFRS 20 would mark a significant change to the reporting for entities within scope of that standard, in particular in jurisdictions like the UK where no current accounting requirements exist for such regulatory contracts.

d) It went on to note the experience of the implementation for IFRS 17 Insurance Contracts where the TRG handled 127 issues as part of their public discussion and as a result played a crucial role in ensuring a consistent, practical and globally-aligned implementation of the standard. The Board noted that such a significant number of issues could not be handled via existing IASB processes, e.g. the Interpretations Committee. This message would be communicated at the forthcoming ASAF meeting.

Statement of Cash Flows and Related Matters

e) The Board received an update on the IASB’s Statement of Cash Flows and Related Matters project, including the proposed targeted clarifications to the definition of cash equivalents in IAS 7 Statement of Cash Flows, aimed at improving consistent application.

f) The Board discussed the ‘three-month maturity from inception’ threshold for cash equivalents, suggested in IAS 7, which was widely viewed as arbitrary and unhelpful. Some Board Members suggested a broader ‘short-term’ concept, rather than a fixed three-month timeframe. Others suggested that cash equivalents would better reflect a company’s liquidity management practice if based on remaining maturity at the reporting date.

g) The Board agreed that, whilst the current rules-based definition based on maturity improves comparability, it can produce arbitrary outcomes. A more principles-based, liquidity-focused approach might better reflect economic reality.

Other projects

h) The Board noted updates on various projects being considered by the IASB, including: Financial Instruments with Characteristics of Equity; Post-implementation Review of IFRS 16 Leases; Equity Method; Amortised Cost Measurement; Business Combinations: Disclosure, Goodwill and Impairment; Statement of Cash Flows and Related Matters; and the list of other IASB Projects.

9. IFRS Interpretations Committee Update

a) The Board considered the topics on the IFRS Interpretations Committee’s (the Committee’s) agenda.

b) The Board agreed that the Secretariat should continue to monitor the Committee’s new pipeline items relating to IFRS 18 Presentation and Disclosure in Financial Statements (Decision). These are:

i. Application of paragraphs 56–57 and 65–66.

ii. Performance measures with income and expenses that are hypothetical.

iii. Labels of subtotals and matters relating to the presentation of expenses.

iv. Scope of ‘public communications’ in the context of confidential investor materials.

v. Assessment of a specified main business activity for a manufacturer-lessor.

c) The Board agreed that the UKEB will not respond to the Committee’s ITC on Reassessment of Control (IFRS 10). (Decision)

10. Items for Noting

a) The Board noted the following papers:

i. Technical Advisory Committee.

ii. Sustainability Update.

iii. IFRS 19 Subsidiaries without Public Accountability: Due Process Compliance Statement.

iv. IAS 28 Amendments to the Fair Value Option: Due Process Compliance Statement.

v. Advisory Groups Update.

11. Any other business

a) There was no other business.

The meeting ended at 12:50 hrs.