Due Process Compliance Statement - Equity Method of Accounting

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The International Accounting Standards Board (IASB) published Exposure Draft (ED) IASB ED/2024/7 Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x) on 19 September 2024. The IASB consultation period ended on 20 January 2025.

Influencing process

Project preparation

Step	Mandatory / optional	Metrics or evidence	UKEB Secretariat comments
Added to UKEB technical work plan [Due Process Handbook (Handbook) 4.30]	Mandatory	Project included in the UKEB published technical work plan	Complete: The Amendments were included in the UKEB technical work plan for monitoring in May 2022 and to the UKEB influencing work plan in September 2024.
Project Initiation Plan (PIP) [Handbook 5.4 to 5.8, A1 to A2 and A12 to A14]	Mandatory	PIP, (including outreach plan for stakeholders, communication approach, resource allocation and an assessment of whether to set up an ad-hoc advisory group, approved at a UKEB Board public meeting.	Complete: Based on the proportionality assessment outlined in the PIP, the Secretariat recommended a 'Limited scope' approach, meaning some non-mandatory milestones were not undertaken or were limited, in accordance with paragraphs 3.7 and 5.3 of the UKEB's Due Process Handbook (i.e. no Board education session, and desk-based research was limited to the proportionality assessment). The PIP included purpose, background, key activities and timelines for the project. One Project Director (0.75 FTE) was allocated to the project. Taking a proportionate approach, an ad-hoc advisory group was not considered necessary, as referred to in the PIP. The PIP was approved at the 17 October 2024 Board meeting and published on the UKEB project webpage.
	Mandatory	Assessment of whether PIP required updating	Complete: We monitored whether the plan required updating throughout the project. Its nature and scope remained as proposed in the original PIP.

Outreach

Step	Mandatory / optional	Metrics or evidence	UKEB Secretariat comments
Outreach activities [Handbook 5.10 to 5.12 and A4 to A8]	Mandatory	Evidence of consultation	Complete: Outreach activities focused on: - Highlighting the Draft Comment Letter (DCL) to UKEB Advisory Groups and Working Groups ². - Publishing the DCL for public consultation on the UKEB project webpage.

Draft Comment Letter (DCL)

Step	Mandatory / optional	Metrics or evidence	UKEB Secretariat comments
DCL published for comment (mandatory unless impracticable) [Handbook paragraphs 5.13 to 5.17 and A4(d)]	Mandatory	Comment period set for responses to DCL, review and approval of DCL at a UKEB public meeting and published on website for public consultation	Complete: The Board reviewed and approved the DCL at the 17 October 2024 Board meeting. It was published on the UKEB website on 21 October 2024, for a 30-day consultation period (comment period deadline: 20 November 2024). A News Alert (published on 21 October 2024) and a LinkedIn post (published on 18 November 2024) were issued to solicit stakeholder feedback.

Project finalisation and project closure

Step	Mandatory / optional	Metrics or evidence	UKEB Secretariat comments
Final Comment Letter (FCL) [Handbook paragraph 5.18 and A4(d)]	Mandatory	Public responses to DCL considered and published on website	Complete: The UKEB received one comment letter, which was published on the UKEB website. The response was assessed and reflected, as appropriate, in the FCL and in the Feedback Statement (FS).
	Mandatory	FCL approved by the UKEB in public meeting and submitted to the IASB, as well as posted on UKEB website	Complete: The Board approved the FCL at its 12 December 2024 public meeting. The FCL was submitted to the IASB and posted on the UKEB website. A News Alert (on 16 December 2024), and a LinkedIn post (on 17 December 2024) were published to alert stakeholders to the FCL.
Feedback Statement (FS) [Handbook 5.19 to 5.22 and A9 to A11]	Mandatory	FS approved for publication by the UKEB in a public meeting and published on the UKEB website	Complete: A draft of the FS was presented to the Board for approval at its 12 December 2024 public meeting. Following Board approval, the final version of the FS was be published on the UKEB website.
Due Process Compliance Statement (DPCS) [Handbook 5.23 to 5.26 and A12 to A14]	Mandatory	Draft DPCS approved by the UKEB in public meeting	Complete: A draft DPCS was presented to the Board for approval at its 12 December 2024 public meeting.
	Mandatory	Final DPCS published on the UKEB website	Pending: A final DPCS is presented, for noting, at the Board's 30 January 2025 meeting, and will be published on the UKEB website after the meeting.

Ongoing communications

Step	Mandatory / optional	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 regular updates on this project in IASB General Update papers between June 2022 and July 2024 ³. The Board approved the PIP and the DCL at its 17 October 2024 meeting. The FCL, FS and draft DPCS were reviewed by the UKEB at the 12 December 2024 Board meeting.
Secretariat papers [Handbook 4.20]	Mandatory	Board meeting papers posted and publicly available usually no later than 5 working days before a Board meeting.	Complete: The UKEB's meeting papers were published on the UKEB website five working days before the public meetings. Meeting minutes and recordings were made publicly available via the UKEB website.
Project webpage [Handbook 4.25(b)]	Mandatory	Project webpage contains a project description with up-to-date information on the project. Consider optional Subscriber Alerts, News Alerts and LinkedIn posts to announce publication of key documents	Complete: The UKEB project webpage has been updated regularly on a timely basis. Optional Subscriber Alerts, News alerts and LinkedIn posts were issued throughout the project, as appropriate, for the publication of the PIP, DCL, FCL & FS, as detailed in the relevant sections above.

Conclusion

This project complies with the applicable due process steps, as set out in the UKEB Due Process Handbook (published December 2022).

Footnotes

In accordance with the UKEB Due Process Handbook (published December 2022). ↩
The UKEB Advisory Groups and UKEB working groups consulted were the Accounting Firms & Institutes Advisory Group (AFIAG) on 7 November 2024, the Investor Advisory Group (IAG) on 4 November 2024, the Preparer Advisory Group (PAG) on 28 October 2024, and the Financial Instruments Working Group (FIWG) on 12 November 2024. ↩
Links to the IASB General update papers for this project can be found on the UKEB project webpage. ↩

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