Interaction between EU-adoption and UK-adoption
The UK left the EU at the end of the Transition Period on 31 December 2020.
Amendments to existing standards adopted by the EU and added to the EU Official Journal before the end of the Transition Period, are available for use by UK companies and form part of the UK-adopted international accounting standards.
IASB Amendments or Standards that were not adopted in the EU before the end of the Transition Period will need to be adopted by the UK.
UK companies wishing to use any IASB Amendments or Standards that have not been adopted by the EU by the end of the Transition Period in their 31 December 2020 accounts, will be able to use those Amendments or Standards only after they have been adopted for use in the UK.
Overview of endorsement criteria
In accordance with regulation 7(1) of the Statutory Instrument (SI) 2019/685 International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations, the endorsement criteria are:
- The standard is not contrary to either of the following principles—
- an undertaking’s accounts must give a true and fair view of the undertaking’s assets, liabilities, financial position and profit or loss;
- 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;
- the use of the standard is likely to be conducive to the long term public good in the United Kingdom; and
- 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.
Information on the true and fair view can be found here.
Overview of long term public good assessment
- Whether likely to improve quality of financial reporting
- Costs and benefits
- Whether use of the standard is likely to have an adverse effect on the UK economy
- Outreach with UK stakeholders
- Draft endorsement criteria assessments issued for public comment
- To request information on a specific project please contact us at UKEndorsementBoard@endorsement-board.uk
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