1.5 Adoption Statement - Annual Improvements to IFRS Accounting Standards – Volume 11

Adoption Statement

1The UK Endorsement Board is designated under regulation 2(1) of The International Accounting Standards (Delegation of Functions) (EU Exit) Regulations 2021 No. 609 ¹ (“the Delegating Regulations") for the purpose of enabling it to exercise functions of the Secretary of State under Chapter 3 of Part 2 of The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685 ² (“the Regulations").

2Annual Improvements to IFRS Accounting Standards - Volume 11 contains amendments to IFRS 1, 7, 9, 10 and IAS 7. These unrelated amendments have been assessed by the UK Endorsement Board as individual, separate amendments within a single overarching Endorsement Criteria Assessment.

3The UK Endorsement Board, in exercise of the powers conferred by regulation 6(1) of the Regulations, adopts the following amendment to international accounting standards published by the International Accounting Standards Board (IASB), for use within the United Kingdom:

1. Annual Improvements to IFRS Accounting Standards-Volume 11-Determination of a 'De Facto Agent’ (Amendments to IFRS 10) (“the Standard")³.

4In accordance with regulation 7(1) of the Regulations, the UK Endorsement Board is of the view that:

1. the Standard is not contrary to either of the following principles—
   1. an undertaking's accounts must give a true and fair view of the undertaking's assets, liabilities, financial position and profit or loss;
   2. consolidated accounts must give a true and fair view of the assets, liabilities, financial position and profit or loss of the undertakings included in the accounts taken as a whole, so far as concerns members of the undertaking;
2. the use of the Standard is likely to be conducive to the long term public good in the United Kingdom; and
3. the Standard meets the criteria of understandability, relevance, reliability and comparability required of the financial information needed for making economic decisions and assessing the stewardship of management.

5In accordance with regulation 8 of the Regulations, the UK Endorsement Board is of the view that adequate consultation with persons representative of those with an interest in the quality and availability of accounts, including users and preparers of accounts, has been undertaken before the adoption decision.

6The adopted Standard referred to in paragraph 3:

1. must be used for financial years beginning on or after 1 January 2026;
2. may be used for financial years beginning before 1 January 2026.

7The text of the Standard is set out in the annex to this statement.

Approval by the UKEB Board

Adoption of Annual Improvements to IFRS Accounting Standards-Volume 11-Determination of a 'De Facto Agent' (Amendments to IFRS 10)

Annual Improvements to IFRS Accounting Standards-Volume 11-Determination of a 'De Facto Agent' (Amendments to IFRS 10) published by the IASB in July 2024 was approved for adoption by 14 members of the UK Endorsement Board.

11 February 2025