8 UKEB Research Strategy

16 July 2026 Agenda Paper 8 OFFICIAL - PUBLIC

Executive Summary

Project Type: Research

Project Scope: Limited

Purpose of the paper

The purpose of this paper is to summarise the feedback received on research in response to the UKEB Regulatory Strategy 2026/27 and discuss the UKEB’s research strategy.

The Appendix to the paper provides the Board with a proposed Project Initiation Plan (PIP) for a research project on cryptoassets in the UK.

Summary of the Issue

In February 2026, the Board approved the Regulatory Strategy 2026/27. That strategy identified areas where the UKEB could provide thought leadership, consistent with its statutory role to contribute to the development of high-quality international accounting standards and to influence the work of the IASB. Stakeholders were particularly supportive of research around intangibles and carbon and other environmental credits.

The appendix to this paper proposes a PIP consistent with this feedback to support future engagement with the IASB and wider international standard-setting discussions on the prevalence, nature and reporting of cryptoassets among UK listed companies. This issue was specifically identified as part of the broader intangibles work stakeholders believe is important. It also responds to the International Accounting Standards Board (IASB) adding a project on cryptoassets to its research pipeline.

Decisions for the Board

1. Does the Board agree with the research priorities for the remainder of the 2026/27 financial year?
2. Subject to any suggested amendments, does the Board approve the PIP for cryptoassets descriptive research presented in Appendix A for publication on the UKEB website?

Recommendation

That the UKEB agree the UKEB’s research priorities and approve the attached PIP.

Appendices

Appendix A Project Initiation Plan: Cryptoassets descriptive research

Background

1 In February 2026, the Board approved the Regulatory Strategy 2026/27. That strategy identified areas where the UKEB could provide thought leadership, consistent with its statutory role to contribute to the development of high-quality international accounting standards and to influence the work of the IASB.

2 The draft Regulatory Strategy highlighted three potential research themes:

1. accounting for intangible assets;
2. carbon and other environmental credits; and
3. fundamental gaps in IFRS Accounting Standards.

3 This paper summarises stakeholder feedback on those themes and sets out the Secretariat’s proposed research priorities for the remainder of the 2026/27 financial year.

Feedback received

4 The UKEB received five responses to the draft Regulatory Strategy. Overall, respondents were supportive of the proposed direction of travel, with a clear preference for focused research in areas where the UKEB can have the greatest international impact.

5 The key feedback is summarised below. Respondents were also asked to rank the proposed topics:

Intangible Assets

6 Respondents strongly supported continuation of the UKEB’s work on intangible assets and welcomed the progress made to date.

7 Feedback endorsed further work to:

1. deepen understanding of user information needs through engagement with UK stakeholders;
2. develop a principles-based framework to support improvements to recognition, measurement and disclosure; and
3. consider connectivity with IFRS Sustainability Disclosure Standards.

8 Stakeholders emphasised the importance of aligning UKEB work with the IASB’s active project on intangibles. Specific areas identified for further research included:

1. cryptoassets;
2. customer-related intangibles; and
3. connectivity with sustainability reporting.

9 Overall, respondents view intangible assets as a high-priority topic, with significant potential for the UKEB to influence international standard-setting, particularly given the limitations of IAS 38 and the IASB’s ongoing work.

Carbon and other environmental credits

10 Respondents expressed clear support for further UKEB research in this area.

11 Stakeholders supported work to:

1. document the range of environmental credit schemes and current accounting practices;
2. assess the diversity of treatments applied in practice; and
3. explore potential principles-based approaches to accounting.

12 Feedback highlighted:

1. the increasing economic importance of environmental credits in the transition to net zero;
2. significant diversity in accounting practice; and
3. a need for greater clarity and consistency.

13 This topic is viewed as an emerging area of growing significance, where the UKEB is well placed to contribute to the development of practice and influence future standard-setting.

Fundamental gaps in IFRS Accounting Standards

14 This theme was ranked lower by stakeholders.

15 While respondents identified a number of topics (including levies, non-reciprocal transactions and aspects of insurance accounting), feedback indicated:

1. no clearly prioritised issue; and
2. a more fragmented set of concerns.

16 As a result, this theme is considered less suitable as a standalone proactive research programme. However, targeted work may be appropriate in the context of existing projects.

17 Depending on developments in the IASB project pipeline, limited research on levies and non-reciprocal transactions could be undertaken as part of the UKEB’s work on provisions.

Other topics

18 One respondent highlighted the growing importance of Artificial Intelligence (AI), particularly in relation to how users extract and analyse information from financial reports.

19 While this is an area of increasing relevance, the Secretariat considers that any work should initially be exploratory and undertaken on an ad hoc basis, subject to resource availability.

Recommendations

20 In developing these recommendations, the Secretariat has considered:

1. Relevance, including stakeholder views and the broader UK context;
2. Impact, including previous UKEB engagement and expected importance of the topic to the future IASB agenda;
3. Feasibility, including UKEB’s capacity to undertake research.

21 The UKEB has a budget to outsource some research. This would allow the UKEB to focus its internal resources where they are likely to have the greatest impact, while continuing to develop evidence on a wider range of relevant topics.

Research may be outsourced where it is primarily descriptive in nature and aimed at providing evidence on the prevalence and nature of specific accounting issues. Research focused on understanding stakeholder perspectives and developing policy recommendations would be undertaken using in-house resources.

22 Based on these considerations, the Secretariat proposes a focused research programme centred on two priority themes, supported by targeted ad hoc work.

Intangible Assets

23 Intangible assets should be the UKEB’s primary research priority given:

1. strong stakeholder support and the existing UKEB research base;
2. direct alignment with an active IASB project; and
3. a clear opportunity to influence international standard-setting.

Proposed research

24 The UKEB will continue to build on its existing work, with the objective of developing key principles that could support future standard-setting, including:

1. recognition and measurement of intangible items; and
2. improved disclosure of intangible resources.

25 A detailed research proposal is expected to be presented to the Board in Q3 2026.

26 In addition, the Secretariat proposes targeted research on cryptoassets. This reflects both stakeholder feedback that specifically identified this topic, and the IASB’s addition of cryptoassets to its research pipeline (November 2025). Research in this area would complement, and contribute to, the existing UKEB intangibles research and support the Board in responding to future IASB work.

27 This work would involve:

1. desk-based research;
2. analysis of financial statements;
3. engagement with preparers and market participants.

28 This research would be descriptive in nature, and focused on understanding the prevalence and nature of cryptoassets in the UK listed company environment. Given current resource prioritisation for the Secretariat, it is proposed that this work is outsourced. A detailed proposal is set out in Appendix A.

29 We are also aware of research that is currently being undertaken by UK academics that is relevant to this topic. We are hoping that there will be interest amongst the academic community to engage with the UKEB and take on the project described here.

Environmental Credits

30 Environmental credits are proposed as the second priority research theme, reflecting:

1. strong stakeholder support;
2. increasing policy relevance in the context of net zero; and
3. evidence of diversity in accounting practice.

31 The topic is closely linked to intangible assets but raises broader accounting questions beyond just asset recognition. It also builds on research previously undertaken by the UKEB linked to climate-related matters and connectivity between IASB and ISSB standards¹.

32 The IASB has also identified pollutant pricing mechanisms as a potential future research topic (November 2025), and the research would support the UKEB in responding to any future IASB project in this area.

Proposed research

33 The Secretariat proposes a comprehensive research project to:

1. analyse the extent and nature of environmental credit schemes;
2. assess current accounting treatments and disclosures;
3. identify areas of diversity and inconsistency; and
4. consider potential principles-based approaches.

34 The work would include:

1. desk-based research and financial statement analysis;
2. market analysis of voluntary and regulatory schemes;
3. stakeholder engagement.

35 This initial research would be descriptive in nature, and focused on understanding the prevalence and nature of environmental credits in the UK listed company environment. Given current resource prioritisation for the Secretariat, we currently expect that this work will be outsourced. A detailed proposal is expected to be presented to the Board in the second half of 2026.

Ad Hoc Research

36 The UKEB undertakes a range of ad hoc research relevant to projects it is undertaking. These projects may be incorporated into existing influencing and endorsement projects, or may be standalone research projects. The research is generally designed to provide the Board with additional evidence to support their decision making, and contribute to international meetings.

37 Currently the UKEB is undertaking three ad hoc projects:

1. Rate Regulated Activities wider economic effects report. This forms part of the IFRS 20 endorsement work and is being outsourced due to its specialised nature.
2. Users of capital markets economics work. This has emerged from the UKEB’s IFRS 20 endorsement work, though it will have wider implications for the work of the UKEB. It is being undertaken by the UKEB’s economics team.
3. IFRS 17 Insurance Contracts: Capital Markets Effects report. This forms part of the UKEB’s Postimplementation Review of IFRS 17 and is being outsourced due to resource constraints.

38 Future ad hoc research will be driven by:

1. IASB developments; and
2. UKEB project priorities.

39 Potential areas include:

1. levies and non-reciprocal transactions (in the context of provisions); and
2. hedge accounting (in the context of the IFRS 9 PIR of hedging).

40 Ad hoc work may be undertaken internally or outsourced, depending on nature and resource availability, with proposals brought to the Board as part of the normal project cycle.

Question for the Board

1. Does the Board agree with the research priorities for the remainder of the 2026/27 financial year?
2. Subject to any suggested amendments, does the Board approve the PIP for cryptoassets descriptive research presented in Appendix A for publication on the UKEB website?

Next Steps

41 Subject to Board approval, detailed research proposals will be brought to future Board meetings.

42 In addition, the Secretariat will develop and publish a research pipeline on the UKEB website, enabling earlier engagement with stakeholders and improving transparency of planned activities.

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Appendix A: Project Initiation Plan: Cryptoassets descriptive research

Purpose

A1 The International Accounting Standards Board (IASB) has added a project on cryptoassets to its research pipeline, noting it as one of the modern asset classes that highlight limitations in the existing accounting requirements.

A2 The UKEB’s previous research has highlighted the need for accounting requirements that remain relevant to emerging forms of intangible assets, including cryptoassets.

A3 To support future engagement with the IASB and wider international standard-setting discussions, the UKEB will commission targeted research into the prevalence, nature and reporting of cryptoassets among UK listed companies.

A4 This paper sets out a plan for an outsourced research project that will strengthen the UKEB's evidence base on intangible assets and support future engagement with the IASB's developing work on intangible assets and cryptoassets.

Background

A5 The UKEB has undertaken extensive research into intangible assets, including qualitative stakeholder interviews, surveys of users of financial statements and quantitative analysis of UK listed company reporting. That work has informed both the IASB and discussions with international accounting standard setters regarding the future development of accounting requirements for intangible assets.

A6 Cryptoassets represent a particularly important area for further investigation because:

1. they are currently within the scope of IAS 38 Intangible Assets in many circumstances;
2. they have emerged since IAS 38 was developed and have proved a particular challenge for existing accounting requirements;
3. stakeholder interest in accounting for cryptoassets continues to increase;
4. the IASB has specifically identified newer forms of intangible assets, including cryptocurrency, as relevant to its work on modernising requirements relating to intangible assets.

A7 This project will support the UKEB's strategic objective of proactively contributing evidence and thought leadership to international accounting standard-setting.

A8 The research will:

1. strengthen the UKEB evidence base on intangible assets;
2. support future engagement with the IASB's Intangible Assets project;
3. enhance understanding of UK reporting practices;
4. identify areas where accounting challenges may exist in practice; and
5. position the UKEB to respond quickly to future IASB consultations or research activities.

Project Plan

Proportionality Assessment

Significance and Size

IASB Project Scope

A9 The IASB has added cryptoassets to its research pipeline and has identified it as an area that may provide useful evidence when considering whether existing accounting requirements remain fit for purpose for newer forms of intangible assets. The proposed UKEB research is intended to provide an evidence base on the prevalence, nature and reporting of cryptoassets within the UK listed environment. The project is not intended to develop accounting solutions or recommendations, but rather to gather evidence that may inform future UKEB and IASB discussions on intangible assets and related reporting issues.

Entities Affected by the Proposals

A10 The research will focus on UK listed companies preparing financial statements in accordance with IFRS Accounting Standards. While cryptoasset holdings are currently expected to be concentrated within a relatively small subset of listed entities, the research will seek to understand both direct holdings and broader exposure to cryptoasset-related activities.

Complexity

A11 The project is expected to be of moderate complexity. Although cryptoasset holdings are not widespread across the UK listed market, identifying relevant entities and analysing accounting treatments may require detailed review of financial statements and disclosures. In addition, stakeholder outreach will be required to understand the commercial rationale for holding cryptoassets and any practical challenges arising from current accounting requirements.

Expected Timeline / Urgency

A12 There is no indication of any need for urgent resolution or accelerated timeline in the UK. However, undertaking this work during 2026/27 would enable the UKEB to build an evidence base at an early stage of the IASB's project and to engage proactively in future international discussions.

Expected Interest / Sensitivity

A13 Stakeholder interest in cryptoassets has increased over recent years, particularly as companies explore new business models and investment opportunities involving digital assets. However, there is only limited evidence of UK stakeholder concern regarding the accounting requirements for cryptoassets.

Feedback on the Proposals from Desk-based Research / Initial Outreach

A14 Previous UKEB research on intangible assets identified a need for accounting requirements that remain relevant for newer forms of intangible assets and highlighted stakeholder concerns regarding the ability of current financial reporting requirements to reflect modern business activities. The IASB's initial work on its Intangible Assets project identified cryptoassets as a specific area of stakeholder concern.

Connectivity

A15 As part of the development of the PIP, we have considered potential overlaps between IASB Accounting Standards and ISSB Sustainability Disclosure Standards. We do not consider there to be any significant connectivity implications for the project. The proposed research is focused on financial reporting for cryptoassets, including their prevalence, accounting treatment and disclosure in financial statements. While some entities may discuss digital asset strategies within broader sustainability or governance reporting, these matters are not expected to form a substantive part of the research scope.

Recommended UKEB Project Scope

A16 Based on the proportionality assessment above we recommend a ‘Limited’ project scope, and the approach described in this document reflects this.

A17 The primary objective is to develop a robust evidence base regarding cryptoassets in the UK listed environment.

Questions to be addressed by the research

A18 Prevalence

1. How common are cryptoasset holdings and cryptoasset-related activities among UK listed entities?
2. Which sectors are most significantly exposed to cryptoassets?

A19 Nature of Holdings

1. What types of cryptoassets are held?
2. For what business purposes are cryptoassets held (investment, treasury management, customer facilitation, trading, operational use, etc.)?

A20 Financial Reporting

1. How are cryptoassets recognised and measured?
2. Which accounting policy choices are being applied?
3. What disclosures are currently provided?
4. Are reporting practices consistent across entities?

A21 Market Developments

1. What are preparers' motivations for holding cryptoassets?
2. What future developments do preparers and market participants anticipate?

Major elements of the research

A22 Desk-Based Research

A23 A literature review covering:

1. IFRS Accounting Standards relevant to cryptoassets;
2. previous accounting and academic research;
3. regulatory publications and guidance;
4. investor and user perspectives;
5. emerging international developments.

A24 Deliverable: A concise review of existing evidence and identification of key research themes.

A25 Financial Statement Analysis

A26 A sample of UK listed company annual reports would be analysed to identify:

1. prevalence of cryptoasset holdings;
2. recognised amounts;
3. accounting policies adopted;
4. disclosures provided;
5. sectoral trends;
6. changes over time where relevant.

A27 The research should seek to identify both entities with direct cryptoasset holdings and those with material exposure arising through cryptoasset-related activities.

A28 Deliverable: A quantitative analysis including summary statistics, sectoral observations and examples of reporting approaches.

A29 Stakeholder Engagement

A30 A limited number of targeted interviews with preparers and market participants would be conducted.

A31 The objective would be to understand:

1. business motivations;
2. reporting challenges;
3. user information needs;
4. perceived strengths and weaknesses of existing accounting requirements.

A32 Deliverable: A report including a summary of key themes and observations from this research.

A33 There is currently no intention to undertake research collectively with other national standards setters for this project.

A34 The project will be considered successful if it:

1. provides a credible evidence base on cryptoassets in the UK listed environment;
2. identifies current reporting practices and emerging trends;
3. informs future UKEB work on intangible assets;
4. supports future engagement with the IASB and international standard setters; and
5. produces findings that can be used in future consultation responses, research activities and thought leadership publications.

Project - Key Activities

Resources Allocated

A35 The UKEB currently has limited Secretariat capacity available to undertake a research exercise of this nature while continuing to support ongoing technical projects and stakeholder engagement activities.

A36 Outsourcing is therefore proposed because:

1. the project requires dedicated research capacity;
2. the work is largely self-contained and suitable for external delivery; and
3. academic researchers can provide specialist expertise in accounting research methodologies.

A37 The preferred approach is to commission a UK academic institution or individual academic researchers with expertise in:

1. financial reporting;
2. capital markets research;
3. financial statement analysis;
4. intangible assets and emerging reporting issues.

A38 The work would be overseen by an SPD and the Technical Director. The required resources and funds are allowed for in the 2026/27 UKEB plan and budget.

Setting up an Ad-hoc Advisory Body

A39 The UKEB will not require a separate ad-hoc advisory body for this project. Existing UKEB advisory and working groups have the necessary skills and expertise to support this project and will be consulted, as outlined in the project plan.

Project Timeline

A40 The proposed high-level project timeline is shown below. This provides a best estimate based on information known at this time. If necessary, a revised PIP will be presented to the Board, to reflect any major changes, as the project progresses.