Minutes of UKEB Public Meeting 25 June 2026

Meeting Date/Time: 25 June 2026 at 10:55 hrs
Meeting Location: Microsoft Teams Meeting

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 Amir Amel-Zadeh and Rob McPheely.

c) The Board had received an education session on Risk Mitigation Accounting earlier that morning.

2. Declarations of Interest

a) There were no declarations of interest to note.

3. Administrative Matters

a) The Board approved the minutes of the previous meeting held on 21 May 2026 for publication on the website. (Decision)

Endorsement and Adoption

4. IFRS 20 Regulatory Assets and Regulatory Liabilities

a) The Board considered the Project Initiation Plan (PIP) for its endorsement project on IFRS 20 Regulatory Assets and Regulatory Liabilities to assess whether to adopt the Standard for use in the UK. The Standard introduces a comprehensive model for entities subject to economic rate regulation that experience differences in timing because of their regulatory agreements. The Standard has an effective date of 1 January 2029, with earlier application permitted (subject to its endorsement for use in the UK).

b) The Board agreed that the Standard is likely to have a significant impact for entities in its scope (e.g. water, energy, aviation). Although a number of these are unlisted, they have publicly listed debt and remain economically important as they are part of critical UK infrastructure. The Board also noted that there are currently no equivalent requirements in UK-adopted IFRS for these entities.

c) The Board considered the work planned to understand the economic impact, including commissioning of an external study. The study would update the 2024 analysis to validate the economic impact of the final Standard.

d) The Board suggested that the significance of the debt capital of the affected entities should also be reflected when considering the scope of the project. In addition, the Board requested some minor amendments to the Annex to the PIP to improve clarity.

e) 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)

Thought Leadership

5. Statement of Cash Flows and Related Matters

a) The Board considered the updated draft of the UKEB’s sixth research paper Statement of Cash Flows and Related Matters: Further research – Banks and Insurers.

b) Consideration was given to the purpose and usefulness of cash flow statements for financial institutions, particularly banks and insurance companies. Some Members noted that the statement does not meet its fundamental objectives (e.g. assessing cash generation or liquidity), while others emphasised that users still value certain aspects as well as its role as a bridge between the other primary financial statements.

c) Subject to the comments made at the meeting, and final approval by the Chair, the Board agreed to publish the sixth UKEB research paper on the UKEB website. (Decision)

d) The Board provided comments on the Secretariat’s proposed key messages for the July 2026 Accounting Standards Advisory Forum (ASAF) on the IASB’s approach to exemptions, presentation requirements, and supplementary disclosures for financial institutions.

6. Provisions – Targeted Improvements

a) The Board considered a comprehensive view of the proposed amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets, including a preliminary technical analysis of the likely impact of the proposals. The Board also received an update on the tentative decisions made by the IASB at its May 2026 meeting, in relation to proposed application requirements for levies.

b) Board Members reiterated their view that it would be preferrable to address the accounting for levies and non-reciprocal transactions as part of a separate project.

c) If the IASB decide to proceed with the proposed amendments to IAS 37 in their current form, Board Members expressed reservations, including:

1. concerns about amending the general principles in IAS 37 to address the accounting for levies;
2. the application challenges likely to arise from the proposed requirement to identify the economic benefit or activity that the government is seeking to levy;
3. concerns about the proposed obligation condition, in particular the requirement in paragraph 14F(a)(ii) to assess whether the economic consequences for the entity of not discharging a responsibility are expected to be ‘significantly worse’ than the costs of discharging it; and
4. the potential risk of unintended consequences.

d) The Board did not consider this to be an urgent project and encouraged the IASB to take its time to fully test the proposed amendments to minimise the risk of unintended consequences. However, the Board noted that the proposed clarification on discount rates can be addressed separately by the IASB as a more urgent issue to enhance consistent application.

e) Given the concerns over unintended consequences and a cost-benefit analysis, it was noted that the IASB should consider whether re-exposure might support an assessment of whether the proposals meet the IASB’s original project objectives.

f) The Board noted that the Secretariat will continue to monitor IASB activity and undertake further analysis of the proposals.

UKEB Related

7. UKEB Due Process Handbook Review

a) The Board considered the proposed approach to revising and streamlining the UKEB Due Process Handbook (DPH). The UKEB’s Terms of Reference require that the DPH is reviewed at least once every five years to ensure that the UKEB is meeting its guiding principles and to make any revisions deemed appropriate.

b) The Board noted that, as 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 was set out in the paper, including a public consultation.

c) The Board supported the proposal to streamline the DPH maintaining only the key aspects of the DPH relating to its statutory functions. The importance of emphasising that the UKEB will continue to be proportionate in its approach to decision-making was paramount, with the aspiration that its paperwork more clearly reflects this.

d) The Board agreed to consider a proposed [Draft] revised DPH at its July 2026 meeting, with a view to publishing it for stakeholder consultation in the autumn. (Decision)

Monitoring

8. IASB General Update

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

Financial Instruments with Characteristics of Equity

b) The Board provided feedback on the IASB’s proposed changes to accounting for Financial Instruments with Characteristics of Equity (FICE). Discussion focused on obligations to purchase non-controlling interests (NCI puts), as part of the IASB’s re-deliberations following its 2023 Exposure Draft (ED).

c) The Board was broadly supportive of the proposed presentation approach, but raised concerns about clarity, usefulness, and potential confusion, especially around subtotals and differing measurement bases between components. The Board expressed concerns about the measurement proposals, as they may introduce inappropriate measurement guidance into a presentation standard (IAS 32) and risk inconsistency. The Board supported retaining alignment with existing IFRS 9 principles.

Intangible Assets

d) The Board provided feedback on the IASB’s findings on user research on intangible assets and the direction of the IASB’s IAS 38 Intangible Assets project. The Board supported a principles-based approach, with a new or updated standard that builds on IAS 38. It considered that the focus should shift from the current research versus development distinction towards a clearer, uncertainty-based recognition threshold.

e) The Board emphasised the need for the model to better reflect how intangible assets are used in practice (including for investment, trading and own use), while ensuring greater consistency between acquired and internally generated intangibles. Members also highlighted that improvements to disclosures are important but should be introduced alongside changes to recognition and measurement and aligned to the overall model. There was also support for maintaining a broad, evidence-based approach to ensure the principles are robust across different scenarios.

Presentation of Taxes or Other Charges that Are Not Tax Expense or Tax Income Applying IAS 12 Income Taxes (IFRS 18)

f) The Board discussed the IASB’s tentative decisions regarding the presentation of taxes or other charges that do not meet the IAS 12 definition of income tax, such as zakat in Saudi Arabia. The Board expressed reservations about the tentative decisions, noting the risk of rushing into standard-setting based on an issue that was specific to a single jurisdiction and relying on definitions over which the IASB had no control (such as that of the OECD (Organisation for Economic Co-operation and Development)). The Board noted the significant potential for unintended global consequences and blurring the boundary of what constitutes income tax under IAS 12.

Equity Method

g) The Board considered IASB’s tentative decision made at its May 2026 meeting on transactions with associates and joint ventures. The Board was of the view that the introduction of an accounting policy choice that permits an investor to choose either full or restricted recognition of gains or losses on all transactions with associates and joint ventures, except for gains or losses on transfer of businesses that would be recognised in full, may not fully address the concerns with the ED proposal, such as the potential for earnings management. The Board also noted the proposed disclosures to help mitigate the potential negative effect on comparability from the accounting policy choice.

Risk Mitigation Accounting

h) The Board received an update on the stakeholder outreach undertaken subsequent to the May 2026 Board meeting and supported the proposed key messages to be conveyed at the July 2026 ASAF meeting.

Other projects

i) The Board noted updates on various projects being considered by the IASB, including: 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 agreed that the Secretariat should continue to monitor the Interpretations Committee’s new pipeline items (Decision):

1. Determination of residual value (IAS 16); and
2. Disposal of an investment in an associate with a price return swap arrangement (IAS 28).

b) The Board considered the Interpretations Committee’s Tentative Agenda Decision on Management-defined Performance Measures – Hypothetical Income and Expenses (IFRS 18).

10. Advisory Groups Update

a) The Board received an update from the chairs of each of the Investor Advisory Group, Accounting Firms and Institutes Advisory Group and the Preparer Advisory Group, including an overview of the discussions at their recent meetings, for which the minutes were expected to be published after the Board meeting.

b) The Board also received an update on the Financial Instruments Working Group roundtable on Risk Mitigation Accounting which took place on 3 June 2026.

11. Items for Noting

a) The Board noted the following papers:

1. Technical Advisory Committee.
2. Sustainability Update.

12. Any other business

a) There was no other business.

The meeting ended at 15:42 hrs.