The UK Endorsement Board (UKEB) is encouraging stakeholders to follow its final discussions on the endorsement of IFRS 18 Presentation and Disclosure in Financial Statements, ahead of a public consultation later this year.

Over its next three board meetings, the UKEB will complete its initial assessment of IFRS 18. These meetings, which will be livestreamed for public access, offer an opportunity for stakeholders to observe the board’s detailed considerations. The next UKEB board meeting takes place on 28 March from 10am and the UKEB is inviting all interested parties to tune in.

The board aims to approve the Draft Endorsement Assessment Criteria (DECA) for IFRS 18 at its June meeting. Once approved, the DECA will be issued for public consultation, allowing interested stakeholders to submit views to the UKEB on its assessment of the suitability of IFRS 18 for use in the UK.

Criteria for adoption

The UKEB will only endorse an IFRS® Accounting Standard for use in the UK if its use leads to financial statements that provide a true and fair view and can be used for making economic decisions and assessing the stewardship of management. Additionally, the use of the Standard must be expected to be conducive to the long-term public good in the UK.

The UKEB’s work to date on assessing IFRS 18 against these criteria has involved both desk-based research and consultation with stakeholders. In particular, through its Advisory Groups and Financial Instruments Working Group, the UKEB has gathered evidence on issues that IFRS 18 might create for stakeholders in the UK.

Most recently, the UKEB has conducted a survey to identify any significant issues with IFRS 18 from the point of view of preparers and users. Initial findings indicate that the requirements in IFRS 18 have been generally well-received by both preparers and users, although a few potential areas of concern were identified, particularly relating to entities that either invest in assets or provide financing to customers. However, while some issues were considered significant, none were identified as critical in nature.

Supporting stakeholders

As well as assessing the suitability of IFRS 18 for use in the UK, the UKEB has produced educational material to support stakeholders. This includes webcasts explaining the main requirements of IFRS 18 and a webinar with International Accounting Standards Board Member Nick Anderson that explores the implications of the Standard.

For more information on the UKEB’s work on IFRS 18, visit its endorsement project page.