Due Process Compliance Statement - Annual Improvements to IFRS Accounting Standards – Volume 11

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30 January 2024
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The International Accounting Standards Board (IASB) published Annual Improvements to IFRS Accounting Standards –Volume 111 Exposure Draft (ED) on 12 September 2023. The IASB comment period ends on 11 December 2023.

Influencing process

Project preparation

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Added to UKEB technical work plan [Due Process Handbook (Handbook) 4.28 to 4.30] Mandatory Project included in the UKEB published technical work plan Complete: The Annual Improvements to IFRS Accounting Standards –Volume 11 (Annual Improvements) were included in the UKEB technical work plan published in September 2023.
Project Initiation Plan (PIP) [Handbook 5.4 to 5.8] Mandatory PIP draft with project outline (background, scope, project objective) and approach for influencing (key milestones and timing) Complete: The Secretariat included mandatory milestones for the project and considered, as appropriate, other milestones and activities. The PIP was approved at the 19 October 2023 Board meeting.
Mandatory Outreach plan for stakeholders and communication approach outlined Complete: The PIP (referred to above) included the outreach plan and approach.
Mandatory Resources allocated Complete: One Project Manager supported by one Assistant Project Manager, with oversight from a Project Director.
Optional Assessment of whether to set up of an ad-hoc advisory group Complete: Taking a proportionate approach, an ad-hoc advisory group was not considered necessary due to the narrow-scope nature of the Amendments.
Mandatory Assessment of whether PIP required updating Complete: We monitored this throughout the project, whose nature and scope remained as proposed in the original PIP.
Mandatory UKEB Board public meeting held to approve PIP Complete: The PIP was approved at the 19 October 2023 Board meeting.
Education sessions [Handbook 4.10] Optional Board provided with education sessions Complete: No education session was provided but the updates on the project were included in the agenda papers for UKEB March 2023 and June 2023 meetings. In addition, education material was shared with the Board in the 19 October 2023 meeting pack.

Desk-based research

Desk-based research [Handbook 5.9]

Step Mandatory / optional Metrics or evidence UKEB Secretariat comments
Desk-based research [Handbook 5.9] Optional Review of relevant documentation. Complete: The Secretariat has reviewed:
  • the IASB's work on the ED (mainly staff papers);
  • the Basis for Conclusions to the ED;
  • relevant material produced by other parties, including accounting firms;
  • IFRS Interpretations Committee Agenda Decisions; and
  • other standard-setters' views.

Outreach

Outreach activities [Handbook 5.10 to 5.12]

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Outreach activities [Handbook 5.10 to 5.12] Mandatory Evidence of consultation Complete: Due to the narrow-scope nature of the proposed amendments, consultation activities were focused on obtaining responses to the Draft Comment Letter and consultation with the UKEB advisory groups: Accounting Firms & Institutes Advisory Group (AFIAG) and Preparer Advisory Group (PAG). Given most of the proposed amendments in the ED are to IFRS 7 and IFRS 9, we drew the Financial Instruments Working Group (FIWG) members' attention to Annual Improvements and asked them to contact the project team if they had any feedback. No feedback was received from the FIWG members. The UKEB received one comment letter. The comment letter received was published on the UKEB website.

Draft Comment Letter (DCL)

DCL published for comment (generally mandatory) [Handbook paragraphs 5.13 to 5.17]

Step Mandatory / optional3 Metrics or evidence UKEB Secretariat comments
DCL published for comment (generally mandatory) [Handbook paragraphs 5.13 to 5.17] Mandatory Consultation period set for responses to DCL Complete: The DCL was published for consultation for 32 days on 19 October 2023 (comment period deadline: 20 November 2023).
Mandatory Review and approval at a UKEB public meeting Complete: The DCL was reviewed and approved at the Board meeting on 19 October 2023.
Mandatory DCL published on website for public consultation Complete: The DCL was published for consultation for 32 days on 19 October 2023 (comment period deadline: 20 November 2023).
Optional News Alert to announce publication Complete: Two news alerts were published on 19 October 2023 and on 15 November 2023 calling for comments. A link to the DCL was included in the meeting packs for the October 2023 PAG meeting and the November 2023 AFIAG meeting.

Project finalisation and project closure

Final Comment Letter (FCL) [Handbook paragraph 5.18]

Step Mandatory / optional Metrics or evidence UKEB Secretariat comments
Final Comment Letter (FCL) [Handbook paragraph 5.18] Mandatory Public responses to DCL assessed and published on website Complete: The UKEB received one comment letter which was published on the UKEB website. All responses were assessed, reflected as appropriate in the FCL and summarised in the Feedback Statement.
Mandatory FCL approved by the UKEB in public meeting Complete: A draft of the final comment letter was presented for approval to the Board at its 14 December 2023 public meeting. The Board approved the final comment letter, subject to suggested amendments.
Mandatory FCL submitted to the IASB and posted on UKEB website Complete: The FCL was submitted to the IASB on 14 December 2023 and posted on UKEB website on 14 December 2023. The Board decided at its 19 October 2023 meeting4 to have a 30-day consultation period for the DCL, acknowledging that the FCL would be submitted to the IASB 3 days after its submission deadline.
Optional News alert published to announce publication Complete: A news alert announcing publication of the FCL was published on 14 December 2023.

Feedback Statement [Handbook 5.19 to 5.22]

Step Mandatory / optional Metrics or evidence UKEB Secretariat comments
Feedback Statement [Handbook 5.19 to 5.22] Mandatory Feedback Statement approved by the UKEB in a public meeting Complete: A draft of the Feedback Statement was presented for approval to the Board at its 14 December 2023 public meeting. The Board approved the Feedback Statement, subject to suggested amendments.
Mandatory Feedback Statement posted on the UKEB website Complete: The Feedback Statement was published on the UKEB website on 14 December 2023.
Optional News alert published to announce publication Complete: A news alert announcing publication of the Feedback Statement was published on 14 December 2023.
Due Process Compliance Statement (DPCS) [Handbook 5.23 to 5.26] Mandatory DPCS approved by the UKEB in public meeting Complete: A [draft] DPCS was presented for approval to the Board at its 14 December 2023 public meeting. A final DPCS was presented for noting at the Board's 30 January 2024 meeting.
Mandatory DPCS published on the UKEB website Complete: The final DPCS was published on the UKEB website after the January 2024 Board meeting.

Ongoing communications

Public Board meetings [Handbook 4.10]

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Public Board meetings [Handbook 4.10] Mandatory UKEB public meetings held to discuss technical project Complete: The Board received an overview of the project in October 2023. The Board approved the PIP and DCL at its meeting on 19 October 2023 and FCL at its meeting on 14 December 2023.
Secretariat papers [Handbook 4.20] Mandatory Board meeting papers made available on the UKEB website usually no later than five working days before a Board meeting Complete: The UKEB's meeting papers were published on the UKEB website 5 working days before the relevant public meetings. Meeting minutes and recordings were made publicly available via the UKEB website. Subscribers were notified via UKEB news alerts.

Project webpage [Handbook 4.25(b)]

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Project webpage [Handbook 4.25(b)] Mandatory Project webpage contains a project description with up-to-date information on the project. Complete: The project webpage was created in September 2023 and has been updated regularly on a timely basis.
Subscriber Alerts [Handbook 4.24 and A4(d)] Optional Evidence that subscriber alerts have occurred Complete: Subscribers were alerted via email 5 days before each Board meeting, with links to the agenda, papers and the option to dial in to observe the discussion. Two news alerts were issued, alerting subscribers to the publication of the DCL.

Conclusion

This document sets out the main due process activities performed as part of the UKEB's due process to issue its comment letter in response to the IASB's ED.

This project complies with the applicable due process steps, as set out in the UKEB Due Process Handbook at the time of writing.

Footnotes

  1. The IASB Exposure Draft Annual Improvements to IFRS Accounting Standards –Volume 11 can be accessed here. ↩

  2. In accordance with the Due Process Handbook. ↩↩↩↩

  3. In accordance with the UK Endorsement Board Due Process Handbook (paragraphs 5.13 to 5.17), a draft comment letter is issued in all circumstances unless impracticable. ↩

  4. Paragraphs 4(c) and 4(d) in the Minutes of UKEB Public Meeting 19 October 2023. ↩