Response 1 - KPMG

KPMG LLP Audit 15 Canada Square London E14 5GL United Kingdom

Pauline Wallace Chair UK Endorsement Board 6th Floor 10 South Colonnade London E14 4PU

Our ref JG/SAH

By email to: [email protected]

7 March 2024

Dear Pauline

Response to Invitation to Comment on the UKEB Draft Comment Letter – Exposure Draft Financial Instruments with Characteristics of Equity

KPMG in the UK (we) welcome the opportunity to respond to the UK Endorsement Board's (UKEB) invitation to comment on the Exposure Draft Financial Instruments with Characteristics of Equity: Proposed amendments to IAS 32, IFRS 7 and IAS 1 (the amendments) (the ED) that were published by the IASB on 28 November 2023.

We appreciate the IASB's efforts to address stakeholder concerns regarding the most common practice challenges in applying the IAS 32 classification requirements.

KPMG International Financial Reporting Group (IFRG) will respond to the IASB consultation on behalf of the network of KPMG member firms in due course.

In advance of that response, KPMG in the UK consider that the proposals in the ED will improve the usefulness of information provided about financial liabilities and equity instruments.

We have no significant comments on the main observations and recommendations noted in UKEB's draft comment letter.

Yours sincerely

KPMG LLP

KPMG LLP, a UK limited liability partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. Registered in England No OC301540 Registered office: 15 Canada Square, London, E14 5GL For full details of our professional regulation please refer to 'Regulatory information' under 'About' at www.kpmg.com/uk